In Brief
The Supreme Court dismissed an appeal challenging an arbitral award that granted interest to a contractor for delayed payments (other than earnest money and security deposit). The Court held that a contractual clause barring interest specifically on earnest money and security deposit does not extend to interest on other contractual obligations like delayed work payments. The Court interpreted Clause 16(2) strictly according to its express language and concluded the arbitrator rightly awarded interest. The Court directed immediate release of the awarded amount and prescribed 12% interest on any outstanding balance from the award date.
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