In Brief
The Post Graduate Institute of Medical Education and Research challenged an arbitral award in a construction contract dispute, specifically the 18% per annum interest rate awarded to M/s Kalsi Construction Company. The High Court had affirmed the award. The Supreme Court held that while the Arbitral Tribunal had jurisdiction to award interest under Section 31(7)(a) of the Arbitration and Conciliation Act, it exercised its power under Article 142 to reduce the interest rate from 18% to 10% per annum simple interest, considering that the contract involved a public medical institution and the long delay since the 1999 award. The respondent was given eight weeks to pay, after which the original 18% rate would apply.
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