R. P. Garg vs The Chief General Manager Telecom ...

The Supreme Court held that under Section 31(7)(b) of the Arbitration and Conciliation Act, 1996, a sum directed to be paid by an Arbitral Award must carry interest, regardless of any contractual clause prohibiting it. The Court restored the District Court's order granting 18% post-award interest from the date of the award to its realization, overturning the High Court's decision which denied such interest based on a specific clause in the contract. The ruling clarifies that post-award interest is a right unless explicitly waived by the parties.