Newsletter/Booklets 29th Oct 2021

ELP Arbitration Update – Garg Builders v. Bharat Heavy Electricals Limited

Latest Thought Leadership

Alerts & Updates 7th Nov 2024

Recent Developments in Direct Tax

Read More
Alerts & Updates 5th Nov 2024

ELP Sanctions Update: U.S. Unilateral Sanctions on Third-Country Sanctions Evaders, Including Select Indian Entities

Read More
Alerts & Updates 4th Nov 2024

Centralized Electronic Listing and Auction Platform for the Sale of Assets under Liquidation Process

Read More
Alerts & Updates 4th Nov 2024

Relaxations offered to retail fund of fund schemes set up in IFSCs

Read More

Dear Reader,

For this week’s update, we analyze the Hon’ble Supreme Court’s decision in Garg Builders v. Bharat Heavy Electricals Limited.

The Court while analysing Section 31(7)(a) of the Arbitration and Conciliation Act, 1996 held that the law relating to award of pendente lite interest by the Arbitrator under the Act, is no longer res integra. The provisions of the Arbitration and Conciliation Act, 1996 give paramount importance to the contract entered into between the parties and categorically restricts the power of the arbitrator to award pre-reference and pendente lite interest when the parties have themselves agreed to the contrary.

While Garg Builders argued that the arbitrator had taken a plausible view under the contract by granting pendente lite interest, the Court rejected the said contention by holding that when the contract contains a specific clause which expressly bars payment of interest, then it is not open for the arbitrator to grant pendente lite interest.

Read More

Privacy Policy

As per the rules of the Bar Council of India, lawyers and law firms are not permitted to solicit work or advertise. By clicking on the "I Agree" button, you acknowledge and confirm that you are seeking information relating to Economic Laws Practice (ELP) of your own accord and there has been no advertisement, personal communication, solicitation, invitation or any other inducement of any sort whatsoever by or on behalf of ELP or any of its members to solicit any work through this website.