interest award - The Legal Chamber

This Supreme Court judgment clarifies that a contractual clause merely barring interest on delayed or disputed payments does not, by itself, expressly or by necessary implication prohibit an arbitral tribunal from awarding pendente lite interest. The power to award such interest under Section 31(7)(a) of the Arbitration and Conciliation Act, 1996, is only denuded if the agreement contains a clear and comprehensive bar. Facts Of The Case: The dispute arose from an arbitral award dated 21.11.2004, which directed the appellant, Oil and Natural Gas Corporation Ltd. (ONGC), to pay a total sum of USD 6,56,272.34 to the respondent, M/s G & T Beckfield Drilling Services Pvt. Ltd., for outstanding invoices and other claims. The arbitral tribunal rejected ONGC's preliminary objection to the ma...

The Supreme Court ruled that similarly situated landowners must receive equal compensation in land acquisition cases. It held that a prior judicial decision awarding a higher multiplier for identical orange trees constituted a "special circumstance," justifying the restoration of a 15x multiplier over a reduced 10x multiplier to prevent discriminatory treatment. Facts Of The Case: The case involved the appellants, landowners from village Khanapur in Akola district, whose land was acquired by the Vidarbha Irrigation Development Corporation pursuant to a notification issued under the Land Acquisition Act, 1894 in August 1995. Possession was taken in April 1996. Dissatisfied with the compensation, the landowners sought a reference to a civil court. In its 2011 award, the reference court gra...

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No Interest on Delayed Payment Clause: Supreme Court Explains Its Limits

Supreme Court Slams Differential Pay, Upholds Fair Value for Fruit Trees on Acquired Land