In Brief
A concession agreement for the Delhi Airport Metro Express between DAMEPL and DMRC contained specific provisions for interest payment on termination payments at SBI PLR plus 2% per annum. When a dispute arose and went to arbitration, the tribunal awarded interest at the contractually agreed rate. DAMEPL argued that pre-award interest should be included in the base sum before calculating post-award interest under the Arbitration Act. The Supreme Court held that when parties have agreed on interest terms, such agreement governs and the tribunal must follow it. The phrase "unless otherwise agreed by the parties" in Section 31(7)(a) of the Arbitration Act means the tribunal's discretion ceases when an agreement exists. The appeal was dismissed as the tribunal correctly applied the agreed contractual terms.
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