STATE OF HARYANA vs M/S S.L.ARORA & COMPANY

The Supreme Court addressed the interpretation of Section 31(7) of the Arbitration and Conciliation Act, 1996, regarding the award of interest on interest. The Court held that while an arbitral tribunal can award future interest on the principal amount, it cannot award interest on the interest that has accrued prior to the award. The Court upheld the High Court's decision to accept the revised calculation of the amount due, emphasizing that the appellants did not dispute their liability to pay interest, but contested the basis for calculating it.