In Brief
HLV Ltd. purchased land and received an advance of Rs. 15.5 crores from PBSAMP Projects. When the deal collapsed, an arbitrator ordered HLV to refund the advance with simple interest at 21% per annum until repayment, as agreed in their contract. HLV paid Rs. 44.42 crores, which the executing court found fully satisfied the award. However, PBSAMP claimed additional compound interest, prompting the Telangana High Court to remand the matter. The Supreme Court held that when a contract and arbitral award explicitly specify interest and its duration, no additional compound interest is due. Party autonomy prevails over statutory default interest provisions. The Court restored the executing court's order, allowing the appeal.
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