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Supreme Court of India 2019-09-02 partly_allowed

Post Graduate Institute of Medical Education and Research Chandigarh vs Kalsi Construction Company

Bench: 2 — R. Banumathi

In Brief

In this appeal, the Supreme Court considered whether to modify the 18% per annum interest rate awarded by an Arbitrator in a construction contract dispute between a medical institute and a contractor. The contract for an Advanced Pediatrics Centre remained unresolved for nearly two decades (1999–2019). While the parties had agreed to 18% interest, the Court exercised its constitutional power under Article 142 to reduce the rate to 10% per annum simple interest, balancing the public nature of the institution and the prolonged delay. The appeal was partly allowed with no costs.

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Arbitration Conciliation Interest Article 142 Constitutional Discretion Contract Dispute Administrative Law

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