M/S Ferro Concrete Construction ... vs The State Of Rajasthan

The Supreme Court examined whether a contractual clause that prohibits claiming interest also restricts an arbitrator's authority to grant pendente lite interest under the Arbitration Act, 1940. The Court emphasized the importance of following precedents and held that such contractual clauses do not bar the arbitrator's power to award interest during the pendency of arbitration. Consequently, the Court reversed the lower courts' decisions and directed the payment of pendente lite interest. The judgment underscores the primacy of statutory law over contractual restrictions in arbitration proceedings.