Union Of India vs M/S. Susuka Pvt. Ltd.

The Supreme Court upheld the decision of the Arbitral Tribunal to award interest on various claims made by the claimant under the Arbitration and Conciliation Act, specifically addressing the pre-reference interest from 04.03.1996 to 05.05.1999 at 15% p.a., pendent lite interest from 06.05.1999 to 09.09.2002 at 12% p.a., and post-reference interest from 09.09.2002 till payment at 18% p.a. The Court affirmed that the Arbitral Tribunal had the authority to decide on interest as per the terms of the General Conditions of Contract, thereby validating the Tribunal's award of Rs.12,89,033/- on the total claims. The judgment clarifies the scope of arbitral powers in determining interest on awarded sums under the Act.