In Brief
Buildworth Pvt Ltd contracted with Assam State Electricity Board to supply and install a water piping system for a thermal power station. Work extended significantly beyond the contractual deadline. The sole arbitrator awarded Rs. 30.73 lacs plus interest for idling charges and price escalation. The High Court upheld the main award but struck down the interest component. The Supreme Court partially allowed Buildworth's appeal, holding that escalation clauses limited to scheduled completion dates do not apply to informally extended periods performed with the employer's acquiescence. The Court confirmed the arbitrator's jurisdiction to award interest on damages from the date of written notice under the Interest Act, 1978, though it reduced the interest rate from 18% to 12% per annum.
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