In Brief
Jaiprakash Associates, a contractor, sought interest on delayed payments in an arbitration dispute with THDC. The arbitrators awarded interest despite contract clauses 50 and 51 of the General Conditions of Contract that expressly barred such interest. The High Court quashed the interest award. The Supreme Court upheld this decision, holding that under the Arbitration and Conciliation Act, 1996, when a contract expressly prohibits interest, arbitrators lack jurisdiction to award it. This differs fundamentally from the 1940 Act framework. The Court rejected arguments based on ejusdem generis interpretation and distinguished earlier case law from the 1940 Act era, finding the contractual bar was absolute and unambiguous.
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