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Supreme Court of India 2020-02-14 partly_allowed

Chandigarh Construction Co. Pvt. Ltd vs State of Punjab & Anr

Bench: 2 — 2

In Brief

In this case, the Supreme Court examined an Arbitrator's award concerning a contractor's claim for additional work and interest. The Arbitrator failed to provide reasoned findings on the claim despite the contract requiring it, and awarded interest at a rate the parties had not agreed upon. The Court held that the lack of reasoning was problematic, and where additional work was not seriously disputed, the matter should be remitted to the Arbitrator for proper reconsideration with stated reasons. The interest was reduced to 12% per annum as a reasonable standard rate. The Court clarified that procedural requirements for monthly claims serve to prevent stale or baseless claims, not to bar all late submissions.

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Arbitration Contract Law Additional Work Claims Interest on Claims Arbitral Award

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