M/S Hyder Consulting(Uk) Ltd vs Governer State Of Orissa Tr.Chief Eng

The Supreme Court, in this judgment, referred the matter to a larger bench to reconsider the decision in State of Haryana v. S.L. Arora (2010) 3 SCC 690 regarding the permissibility of awarding interest on interest under Section 31(7) of the Arbitration and Conciliation Act, 1996. The Court noted that the appellants argued that the S.L. Arora case incorrectly assumed that prior judgments, including McDermott International INC v. Burn Standard Co. Ltd. (2006) 11 SCC 181, were not applicable, thereby necessitating a re-evaluation of the legal principles established therein. The outcome of this referral indicates the need for clarity on the interpretation of interest awards in arbitration cases.