Union Of India vs M/S.Krafters Engineering & Leasing ...

The Supreme Court addressed the issue of whether an arbitrator has jurisdiction to grant interest despite a contractual prohibition, specifically referencing clause 1.15 of the General Conditions of the Contract. The Court held that the arbitrator retains the power to award interest even if the contract states otherwise, relying on precedents such as Board of Trustees for the Port of Calcutta vs. Engineers-De-Space-Age and Madnani Construction Corporation Private Limited vs. Union of India. The appeal by the Union of India was dismissed, affirming the arbitrator's award of interest.