In Brief
Delhi Airport Metro Express Private Limited (DAMEPL) sought to include interest accrued from the date of cause of action until the arbitral award (interest pendente lite) in the 'sum' awarded under Section 31(7)(a) of the Arbitration and Conciliation Act, 1996. The Supreme Court held that where parties have agreed on interest payment terms in their contract (here, Article 29.8 of the Concession Agreement providing SBI PLR + 2%), the phrase 'unless otherwise agreed by the parties' in Section 31(7)(a) mandates that the Arbitral Tribunal follow that agreement, not exercise independent discretion. The Court distinguished Hyder Consulting, which addressed interest where no agreement existed. The judgment was dismissed, affirming the High Court's refusal to include contractually-limited interest in calculating post-award interest.
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