Post Graduate Institute Of Medical ... vs M/S Kalsi Construction Company

The Supreme Court upheld the authority of the Arbitrator under Section 31(7) of the Arbitration and Conciliation Act to award interest, affirming the High Court's dismissal of the appellant's appeal under Section 37. However, the Court exercised its power under Article 142 of the Constitution of India to reduce the interest rate from 18% to 10% per annum, considering the long delay since the award was made in 1999. The Court mandated that the modified award amount, along with the accrued interest, be paid within eight weeks, failing which the entire amount would attract further interest.