Arbitration agreement prohibiting grant of interest

When the terms of the agreement had prohibited award of interest, the Arbitrator could not award interest for the pendente lite period.

Clause 13 (3) of the contract entered into between the parties read as under:

“13(3). No interest will be payable upon the earnest money and the security deposit or amounts payable to the contractor under the contract, but Government Securities deposited in terms of sub-clause(1) of this clause will be repayable with interest accrued thereon.”

It has been held thus: Continue reading “Arbitration agreement prohibiting grant of interest”