M/S Raveechee And Co. vs Union Of India

The Supreme Court addressed the issue of whether Clause 16(3) of the General Contract Clauses restricted the arbitrators' power to award interest pendente lite. The Court held that the clause explicitly prohibits the award of interest on security deposits, thereby affirming the Arbitrators' decision not to grant interest on such amounts. Consequently, the Court dismissed the appeals against the Gujarat High Court's orders which had set aside the interest awarded by the Arbitrators under Claim No. 12, thus upholding the High Court's judgment.