UNION OF INDIA vs M/S BRIGHT POWER PROJECTS(I) P.LTD.

The Supreme Court held that the Arbitral Tribunal has the authority to award interest under Section 29 of the Arbitration Act, 1940, even if the contract specifies that no interest shall be paid. The Court emphasized that the provision in the contract does not preclude the Tribunal from exercising its power to award interest, especially when it is justified based on the circumstances of the case. The appeal by the Union of India was dismissed, upholding the award of interest to the respondent contractor.