UNION OF INDIA vs M/S.KRAFTERS ENGINEERING & LEASING P.LTD

The Supreme Court addressed the issue of whether an arbitrator has the jurisdiction to grant interest despite a contractual prohibition against it, as stated in clause 1.15 of the General Conditions of the Contract. The Court held that the arbitrator does possess the authority to award interest, referencing 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. Consequently, the appeal by the Union of India was dismissed, affirming the arbitrator's award of interest.