COURT CANNOT ORDER PAYMENT OF INTEREST AGAINST THE CONTRACT - SC
If an arbitration agreement says that no interest would be payable for an award amount from the date when the cause of action arose and the date of the award ,SC court decided in the case, Sree Kamatchi Amman Construction vs Divisional Railways Manager . In this case the contract stated that no interest would be payable on this clause, the arbitral tribunal refused to order interest from the date of the cause of action to the date of award. This was upheld by the madras high court. The Supreme Court dismissed the appeal of the contractor.