SC held Arbitral Tribunal coudn’t grant pre-award or pendente lite interest when contract prohibited It

Union of India & Ors. Vs Larsen & Tubro Limited (L&T) (Supreme Court of India) Conclusion: Once the parties had contractually agreed to exclude interest, Arbitral Tribunal, being a creature of the contract, could not award pre-award or pendente lite interest even in the guise of “compensation”. However, post-award interest stood on a different footing. Since the GCC barred interest only till the date of the award, the Arbitral Tribunal was justified in granting post-award interest. Held: The dispute arose from a turnkey contract between North Central Railway (Union of India) an...