M/S SREE KAMATCHI AMMAN CONSTRUCTIONS vs DIVISIONAL RLY.MANAGER/WORKS .

The Supreme Court addressed the issue of interest in arbitration awards under the Arbitration and Conciliation Act, 1996, specifically Section 31(7)(a). The Court held that the arbitral tribunal's refusal to award interest for the pre-reference period and pendente lite, based on Clause 16(2) of the General Conditions of Contract, was not justified as it did not preclude the tribunal from awarding interest. The Court allowed the appeal in part, affirming the award for certain claims while remitting the issue of interest back to the arbitral tribunal for reconsideration.