In Brief
A railway contractor challenged a High Court decision that had set aside an arbitral award and ordered a fresh reference. The contractor's tender for earth work at a railway terminal was accepted, but disputes arose regarding execution and abandonment. An arbitrator awarded the contractor Rs. 11.13 lakhs plus interest. The Supreme Court held that while the Division Bench wrongly reopened arbitrability questions for the first time on appeal, the contractor is not entitled to any interest because the contract explicitly prohibited such payment under Section 31(7)(a) of the Arbitration Act, 1996. The Court allowed the contractor to retain 50% of the deposited amount (excess of award) without recovery.
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