A.P.State Trading Corp.Ltd vs M/S G.V.Malla Reddy & Co

The Supreme Court set aside the High Court's order that awarded interest at 18% per annum under the Arbitration Act, 1940, and reduced it to 9% per annum, citing the precedent in State of Rajasthan & Anr. Vs. Ferro Concrete Construction Pvt. Ltd. (2009) 12 SCC 1, which establishes that in the absence of a specific contract regarding interest rates, pendente lite and future interest should not exceed 9%. The Court upheld the Civil Court's judgment as modified by the High Court in all other respects.