In Brief
A government contractor challenged a High Court order directing a fresh arbitration after the division bench first raised the validity of a 'No Claims Certificate'. The Supreme Court held that arbitrability objections cannot be raised for the first time on appeal if not previously urged before the Chief Justice or Arbitral Tribunal. On the merits, the Court held that when a railway contract explicitly barred interest payments to contractors, the arbitrator wrongly awarded pre-award and pendente lite interest. The appeal was partly allowed; the principal award amount stands but all interest (Rs. 12.45 lakh) is disallowed as prohibited by the contract terms.
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