In Brief
A contractor was awarded a highway upgradation contract and later sought interest on delayed payments owed in local currency. Although the contract expressly provided for interest on late payments, the contractor had left the interest rate blank in its bid. The courts below set aside the arbitral tribunal's award of 1% monthly compounded interest, finding the blank field implied zero entitlement. The Supreme Court reversed this, holding that a blank field does not negate an express contractual right to interest; it merely leaves the rate unspecified. However, the tribunal's rate was excessive. The Court restored the tribunal's award but reduced the interest to 8% simple per annum, following principles of equitable compensation for use of money unlawfully withheld.
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