M/S.SAYEED AHMED & CO. vs STATE OF U.P. .

The Supreme Court addressed the issue of whether an Arbitrator can award interest for the pre-reference period and pendente lite when the contract prohibits such claims. The Court held that the High Court erred in setting aside the Arbitrator's award of interest based on a misinterpretation of the contract clause G1.09, which does not bar the Arbitrator from awarding interest on claims. The Court reinstated the Arbitrator's award, affirming the right to interest as per the terms of the contract and the nature of the claims made.