The Court: On June 11, 2025, Mr. Chakraborty, learned counsel
representing the appellant began his argument. He had submitted that out
of the twenty five heads of claim in the statement of claims, claim no.20 was
withdrawn by the claimant. Nine claims were rejected by the learned
arbitrator to which there is no challenge. Fifteen claims were allowed. Out
of the claims allowed, four claims have already been paid by the appellant
during the pendency of the application for setting aside under Section 34 of
the Arbitration and Conciliation Act, 1996, without prejudice to the
appellant’s rights and contentions. Presently, only eleven claims are being
assailed.
Today, Mr. Chakraborty took us through the operative portion of
the Award. He submitted that the main challenge of the appellant is to the
award of interest pendente lite. This is because Clause 16(2) of the General
Conditions of Contract bars payment of interest on any moneys payable by
the appellant to the claimant/respondent including earnest money and
security deposit. Therefore, keeping in view Section 31(7) as also Section
28(3) of the 1996 Act, it was not within the power of the arbitrator to award
interest pendent lite. In this connection learned advocate cited the following
decisions:
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