Supreme Court of India

Union of India v. Manraj Enterprises

Neutral citation
Bench M. R. Shah and B. V. Nagarathna JJ.
Decided 18 November 2021

INSC stands for INDIAN SUPREME COURT. A neutral citation scheme assigned by the Court itself, so a judgment can be cited without depending on a commercial law reporter. INSC is the neutral citation scheme assigned by the Supreme Court, so a judgment can be cited without depending on a commercial law reporter.

1 Supreme Court bench has cited this judgment.

What the Court ordered

We hold that the learned Arbitrator in the instant case has erred in awarding pendente lite and future interest on the amount due and payable to the contractor under the contract in question and the same has been erroneously confirmed by the High Court.

Judgment, page 19

From the headnote

Interest: Interest pendente lite – Award of interest by arbitrator contrary to clause 16(2) of the General Conditions of Contract – Correctness of – Dispute related to work contract – Arbitrator awarded pendente lite and future interest at the rate of 12% and 18% respectively on the entire awarded amount except for the earnest money deposit and security deposit – Said order upheld by the High Court – On appeal, held: Once the contractor agrees that he shall not be entitled to interest on the amounts payable under the contract, including the interest upon the earnest money and the security…

Where later benches applied it

Of those, 1 mentioned

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