JAIPRAKASH ASSOCIATES LTD. (JAL)THROUGH ITS DIRECTOR vs TEHRI HYDRO DEVELOPMENT CORPORATION INDIA LTD. (THDC )INDIA LTD.THROUGH ITS DIRECTOR

The Supreme Court addressed the issue of whether arbitrators could award interest under the Arbitration and Conciliation Act, 1996, in light of Clauses 50 and 51 of the General Conditions of Contract, which explicitly barred interest on dues. The Court held that the High Court erred in quashing the arbitral award regarding interest, affirming that arbitrators have the authority to grant interest unless explicitly prohibited by the contract. Consequently, the Supreme Court reinstated the arbitral award allowing interest at specified rates.