In Brief
A contractor (S.A. Builders) was awarded Rs. 1,70,40,720.80 plus 18% simple interest by an arbitrator for incomplete construction work for the North Delhi Municipal Corporation (NDMC). Years later, during execution, the court asked the arbitrator to clarify whether post-award interest should apply to the principal alone or to the principal plus pre-award interest. The arbitrator clarified that post-award interest applies to the combined amount. NDMC challenged this, claiming the arbitrator had become functus officio and lacked jurisdiction. The Supreme Court held that the 30-day period in Section 33 of the Arbitration Act can be extended by court permission or mutual agreement, and that 'sum' under the Act includes pre-award interest. Post-award interest therefore applies to the total amount, not just the principal. NDMC's repeated objections were barred by res judicata. The appeal was dismissed.
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