M/S Larsen Air Conditioning And ... vs Union Of India

The Supreme Court addressed the modification of an arbitral award concerning interest rates, where the Allahabad High Court reduced the interest from 18% compound to 9% simple. The court examined the legality of the High Court's decision under the Arbitration and Conciliation Act, 1996, and ultimately upheld the original arbitral award, reinstating the 18% compound interest. This judgment reinforces the sanctity of arbitral awards and the limited grounds for their modification.