In Brief
A contractor claimed payment for delayed road construction work completed in 1977. After arbitration proceedings spanning decades, the arbitrator awarded Rs 9.2 lakh in principal plus Rs 46.9 lakh interest at 18% per annum. The Supreme Court held that while the principal award stood, the arbitrator had erred in awarding interest without assigning reasons and across periods when the contractor himself caused delays (remaining silent for 12 years before claiming, and 10 years after a decree). The Court exercised Article 142 jurisdiction to reduce interest to 9% per annum and denied interest for the delay periods, directing recalculation by the executing court.
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