Created by Fuzzy Cloud

Interest Act, 1978

65 judgments · newest first · showing 1–65

THE KOLHAPUR MUNICIPAL CORPORATIONversusFAIRDEAL CONSTRUCTION

DISPOSED OFF

The Kolhapur Municipal Corporation (Petitioner) challenged an arbitral award of Rs 24,06,50,119.03 awarded to Fairdeal Construction (Respondent) under Section 34 of the Arbitration and Conciliation Act, 1996. The award also granted pendente‑lite interest at 18% from 1997, post‑award interest at 18% …

The Bihar State Food and Civil Supplies Corporation Ltd.versusSanjeev Kumar Singh

PARTLY ALLOWED (DISPOSAL)

The Bihar State Food and Civil Supplies Corporation appointed a sole arbitrator to resolve a dispute with Sanjeev Kumar Singh over unpaid transport bills under a 2016 agreement for the Darbhanga district. The arbitrator awarded the claimant a principal sum, earnest money for Darbhanga and Sitamarhi, …

The Bihar State Food and Civil Supplies Corporation Ltd.versusPiyus Kumar

PARTLY ALLOWED (DISPOSAL)

The Bihar State Food and Civil Supplies Corporation (appellant) entered a three‑year transport‑handling agreement with Piyush Kumar (respondent) for the Madhubani district. The contract was terminated and the respondent was black‑listed in 2019, leading to arbitration under the Arbitration and …

The Bihar State Food and Civil Supplies Corporation Ltd.versusRam Uday Singh

PARTLY ALLOWED (DISPOSAL)

The Bihar State Food and Civil Supplies Corporation (BSFC) entered into a 2014 transport‑handling agreement with Ram Uday Singh for the Munger district, later extending the work to Madhubani and Bhagalpur. After disputes over GPS tracking and alleged contract breaches, BSFC cancelled the agreement …

The Bihar State Food and Civil Supplies Corporation Ltd.versusDinkar Choudhary

PARTLY ALLOWED (DISPOSAL)

The Bihar State Food & Civil Supplies Corporation entered into a three‑year transport‑handling agreement with Dinkar Choudhary, who later claimed delayed payments amounting to over ₹4.44 crore. The parties failed to appoint an arbitrator, leading to a sole arbitrator’s award on 17 Oct 2020 granting …

The Bihar State Food and Civil Supplies Corporation Ltd.versusRam Uday Singh

DISPOSED

The Bihar State Food and Civil Supplies Corporation (BSFC) entered into a 2014 transport‑handling agreement with Ram Uday Singh for the Munger district, later extending the work to Madhubani and Bhagalpur. After disputes over GPS tracking and alleged contract breaches, BSFC cancelled the agreement …

The Bihar State Food and Civil Supplies Corporation Ltd.versusDinkar Choudhary

DISPOSED

The Bihar State Food & Civil Supplies Corporation appointed Dinkar Choudhary as transporting‑cum‑handling agent under a 2014 agreement and later disputed unpaid bills. The arbitrator awarded the claimant Rs 2,06,13,021, compensation of Rs 25 lakh, 10% pre‑award interest and 18% post‑award interest, …

JAYKISHOR CHATURVEDI & ETC.versusSECURITIES AND EXCHANGE BOARD OF INDIA

2025 INSC 846Dismissed

The appellants, promoter‑directors of a listed finance company, were found to have purchased shares in violation of SEBI's insider‑trading regulations and were penalised by an SEBI Adjudicating Officer on 28‑08‑2014. The penalty orders required payment within 45 days and were affirmed by the Supreme …

NORTH DELHI MUNICIPAL CORPORATIONversusM/S S.A. BUILDERS LTD.

2024 INSC 988Dismissed

The North Delhi Municipal Corporation (appellant) contracted with M/s S.A. Builders Ltd. (respondent) for construction work, which was not completed and led to a dispute. An arbitrator awarded Rs. 1,70,70,720.80 with simple interest and later issued a clarification on 15 March 2005 regarding …

PAM DEVELOPMENTS PRIVATE LIMITEDversusTHE STATE OF WEST BENGAL & ANR.

2024 INSC 628

Pam Developments Private Ltd entered into a work contract with the State of West Bengal for road widening, which was completed after a five‑month delay. The contractor claimed several sums, including labour charges for uneconomical stoppage, interest on delayed payment of running‑account bills, and …

M/S D. KHOSLA AND COMPANYversusTHE UNION OF INDIA

2024 INSC 587Dismissed

The petitioner, M/s D. Khosla & Co., obtained an arbitration award in 1997 that granted simple interest of 12% for the pre‑award period and 15% for the post‑award period, both described as payable on the "amount awarded" (the principal compensation of Rs.21,56,745). The petitioner later claimed that …

EXPERION DEVELOPERS PVT. LTDversusSUSHMA ASHOK SHIROOR

2022 INSC 404Disposed off

The developer Experion Developers failed to deliver possession of an apartment to the consumer, Sushma Ashok Shiroor, within the 42‑month period stipulated in the Apartment Buyer’s Agreement. The consumer filed a complaint before the National Consumer Disputes Redressal Commission, which ordered the …

GARG BUILDERSversusBHARAT HEAVY ELECTRICALS LIMITED

2021 INSC 606Dismissed

Garg Builders entered into a construction contract with Bharat Heavy Electricals Ltd (BHEL) that contained Clause 17 expressly barring any interest on monies due to the contractor. A dispute was referred to arbitration, and the arbitrator awarded pendente lite and future interest despite the clause. …

VEDANTA LTD.versusSHENZEN SHANDONG NUCLEAR POWER CONSTRUCTION CO. LTD.

2018 INSC 959Leave Granted & Disposed off

Vedanta Ltd entered into four EPC contracts with Shenzen Shandong Nuclear Power Construction Co. Ltd for a 210‑MW co‑generation plant. After termination of the contracts, the Chinese company invoked the arbitration clause and obtained an award granting sums in INR and EUR, with interest at 9% for …

RELIANCE CELLULOSE PRODUCTS LTD.versusOIL AND NATURAL GAS CORPORATION LTD.

2018 INSC 623Disposed off

Reliance Cellulose Products Ltd. and ONGC entered into a contract for supply of CMC. A dispute arose over the price, which was referred to arbitration. The arbitrator fixed a higher price and awarded pre‑reference, pendente‑lite and future interest at 18% per annum. The Civil Judge reduced the …

M/S RAVEECHEE AND COversusUNION OF INDIA

2018 INSC 574Appeal(s) allowed

M/s Raveechee & Co. entered into a quarrying contract with the Union of India, which later gave rise to a dispute that was referred to arbitration on 26 September 1988. The Arbitral Tribunal awarded damages and, on the basis of being deprived of those sums during the pendency of the arbitration, …

DUSHYANT N. DALAL AND ANOTHERversusSECURITIES AND EXCHANGE BOARD OF INDIA

2017 INSC 1004Disposed off

The petitioners, Dushyant N. Dalal and his wife, were ordered by SEBI to disgorge unlawful gains of Rs.4.05 crore and pay a penalty of Rs.6 crore, with a debarment of seven years if unpaid. They challenged the SEBI order, arguing that interest could not be levied retrospectively under Section 28A of …

ASSAM STATE ELECTRICITY BOARD AND ORS.versusBUILDWORTH PVT. LTD.

2017 INSC 587Disposed off

The Supreme Court examined an arbitral award granting Buildworth Pvt. Ltd. price‑escalation, idling‑charges and interest against Assam State Electricity Board. The Board argued that the award exceeded the contractual ceiling for escalation, ignored the claimant’s contributory delay, and that …

M/S SHANTI CONDUCTORS (P) LTD. ANR.versusASSAM STATE ELECTRICITY BOARD & ORS.

2019 INSC 81Matter referred to larger bench

The Supreme Court examined whether the Interest on Delayed Payments to Small Scale and Ancillary Industrial Undertakings Act, 1993 (the 1993 Act) applies retrospectively to supply orders placed before its commencement on 23‑09‑1992. The Court held that the Act is prospective, its liability arising …

M/S UMESH GOELversusHIMACHAL PRADESH COOPERATIVE GROUP HOUSING SOCIETY LTD.

2016 INSC 457Appeal(s) allowed

The appellant, an unregistered partnership firm, entered into a construction contract with the respondent and later contested the respondent's claim in arbitration. The respondent argued that Section 69(3) of the Partnership Act, 1932 barred the firm from participating in arbitral proceedings …

UNION OF INDIAversusM/S. AMBLCA CONSTRUCTION

2016 INSC 265Reference answered

The case concerned whether an arbitrator could award pendente lite interest when the underlying contract expressly barred interest on delayed payments. The dispute arose from a construction contract between the Union of India and M/s. Ambica Construction, which had undergone multiple arbitrations …

V. KALA BHARATHI & ORS.versusTHE ORIENTAL INS. CO. LTD., BR. CHITOOR

2014 INSC 236Appeal(s) allowed

The appellants, legal heirs of a deceased road‑accident victim, were awarded Rs.98.40 million with 12% interest by the Motor Accident Claims Tribunal. The insurer appealed, reduced the principal to Rs.56.40 million but retained the interest rate, and made several partial payments. The Executing …

DR. BALRAM PRASADversusDR. KUNAL SAHA & ORS.

2013 INSC 717Disposed off

Dr. Kunal Saha filed a consumer complaint after his wife died while being treated for toxic epidermal necrolysis at AMRI Hospital. The National Consumer Disputes Redressal Commission held the hospital and four doctors negligent but reduced the claim, deducted 10% for alleged contributory negligence …

BHARAT HEAVY ELECTRICALS LTD.versusR.S. AVTAR SINGH & CO.

2012 INSC 456Dismissed

Bharat Heavy Electricals Ltd. (appellant) challenged an execution petition filed by R.S. Avtar Singh & Co. (respondent) on the ground that the arbitral award, made a rule of court on 31‑05‑1985, had been fully satisfied by part payments made in 1985 and 2000, and that no further interest could be …

M/S. MSK PROJECTS (I) (JV) LTDversusSTATE OF RAJASTHAN & ANR.

2011 INSC 510Disposed off

The Supreme Court considered a dispute arising from a BOT concession agreement for the Bharatpur bypass road, where the contractor claimed entitlement to tolls and compensation for delay in the State's issuance of a traffic‑restriction notification and for the Bharatpur‑Deeg patch of road. The …

STATE OF HARYANA & ORS.versusS. L. ARORA & COMPANY

2010 INSC 69Appeal(s) allowed

The State of Haryana awarded a construction contract to S.L. Arora & Co., which was completed late, leading to arbitration. The arbitrator awarded Rs 14.94 lakh with 12% simple interest from 19‑Dec‑1990 to the award date and future interest of 18% per annum on the "total amount of award" if not paid …

M/S. MADNANI CONSTRUCTION CORPORATION (P) LTDversusUNION OF INDIA & OTHERS

2009 INSC 1286Appeal(s) allowed

Madnani Construction Corporation entered into a contract with the North Eastern Railway for bridge work. Disputes arose over alleged manipulations in measurement books, leading the contractor to seek arbitration. The arbitrator, after examining the level book, graph sheets and log books, found that …

U.P. COOPERATIVE FEDERATION LTD.versusM/S. THREE CIRCLES

2009 INSC 1124Dismissed

The U.P. Cooperative Federation Ltd. entered into a contract with M/s Three Circles for constructing a cold storage. Disputes arose over balance steel, alleged bad workmanship, and interest on the award. An arbitrator awarded Rs.32,68,805.80 with interest at 15% and allowed various claims, which the …

SAYEED AHMED & CO.versusSTATE OF UP & ORS.

2009 INSC 896Case Partly allowed

The appellant, a contractor, completed a construction project for the State of Uttar Pradesh in 1996, after which disputes over payment led to arbitration in 1997. The arbitrator awarded the respondents to pay the contractor Rs.24,18,586 with interest at 18% per annum from April 1996, and also …

TAHAZHATHE PURAYIL SARABI & ORS.versusUNION OF INDIA & ANR.

2009 INSC 815Appeal(s) allowed

The appellants' husband was robbed and thrown from a moving train in 1998, resulting in his death. The appellants filed a claim for compensation before the Railway Claims Tribunal, which awarded Rs.4 lakh in 2007 but granted interest only in case of default. The appellants appealed, arguing that …

STATE OF RAJASTHAN & ANR.versusMIS. FERRO CONCRETE CONSTRUCTION PVT. LTD.

2009 INSC 580Appeal(s) allowed

The State of Rajasthan entered into a contract with Ferro Concrete for a water‑pipeline project. After the contractor failed to complete the work, arbitration was instituted and the arbitrator awarded various sums, including loss of profit (claim 1), idle‑machinery compensation (claim 37A), and …

M/S. VIJAY INDUSTRIESversusM/S. NATL TECHNOLOGIES LTD.

2008 INSC 1467Appeal(s) allowed

Vijay Industries, a small‑scale supplier of castor oil, sued Natl Technologies for non‑payment of invoices and for interest on delayed payments, filing a winding‑up petition under Sections 433(e), 433(f) and 434 of the Companies Act, 1956. The respondent argued that interest was not a debt because …

UNION OF INDIAversusPARMAL SINGH & ORS.

2008 INSC 1349Dismissed

The lands of Parmal Singh and others were requisitioned by the Central Government in 1963 under the Defence of India Act, 1962 and subsequently acquired in 1965. The Special Land Acquisition Officer fixed compensation, which the owners contested, leading to arbitration awards that included interest. …

H.U.D.AversusRAJ SINGH RANA

2008 INSC 835Case Allowed

The Haryana Urban Development Authority (HUDA) allotted a residential plot to Raj Singh Rana under an allotment letter that stipulated a 7% simple interest rate on instalments of the tentative sale price. After the plot’s acquisition cost was enhanced, HUDA demanded additional payment with interest …

LIFE INSURANCE CORPORATION OF INDIA AND ANR.versusSMT. S. SINDHU

2006 INSC 290Appeal(s) allowed

The Life Insurance Corporation of India (LIC) issued a 20‑year life insurance policy to K, who paid premiums for three years before the policy lapsed and later died. LIC paid the statutory paid‑up value of Rs 1,13,750 as per the policy’s non‑forfeiture clause, but the claimant, Smt. S. Sindhu, …

GHAZIABAD DEVELOPMENT AUTHORITYversusBALBIR SINGH

2004 INSC 182

The Supreme Court examined a batch of appeals arising from orders of the National Consumer Disputes Redressal Commission (NCDRC) that uniformly awarded interest at 18% per annum in cases of deficiency of service by development authorities. The Court held that the Consumer Protection Act, 1986 has a …

SMITA CONDUCTORS LTD.versusEURO ALLOYS LTD.

2001 INSC 417Dismissed

Smita Conductors Ltd. (appellant) and Euro Alloys Ltd. (respondent) entered into contracts for the supply of aluminium rods that contained an arbitration clause but were never signed by the appellant. The appellant opened irrevocable letters of credit and made shipments, but later invoked a …

STEEL AUTHORITY OF INDIA LTD.versusJ.C. BUDHARAJA, GOVERNMENT AND MINING CONTRACTOR

1999 INSC 375Appeal(s) allowed

The Steel Authority of India Ltd. (appellant) challenged an arbitral award that granted damages for delay in handing over a work site, which the contract expressly prohibited. The appellant also argued that the claim was barred by the three‑year limitation period under the Limitation Act, 1963. The …

THE STATE OF J & K AND ANR.versusDEV DUTT PANDIT

1999 INSC 358Case Partly allowed

The State of Jammu & Kashmir terminated a measurable‑item rate contract with contractor Dev Dutt Pandit after less than 50% of the work was completed and the contractor filed a petition under Section 20 of the Arbitration Act. An arbitrator awarded Rs. 20,08,000 based on a final bill prepared from …

SUPERINTENDING ENGINEER AND ORS.versusB. SUBBA REDDY

1999 INSC 204Appeal(s) allowed

The appellant (Superintending Engineer) and respondent (B. Subba Reddy) entered into four contracts which were later arbitrated, resulting in awards that granted damages for delay and interest at 18% per annum on the total award, EM Deposit, Bank Guarantee and damages. The Principal Subordinate …

OIL AND NATURAL GAS COMMISSIONversusM/S M.C. CLELLAND ENGINEERS S.A.

1999 INSC 200Dismissed

The Oil and Natural Gas Commission (ONGC) appealed a decree based on an arbitral award that required M.C. Clelland Engineers to pay the principal amount plus interest at 12% and an additional interest on that interest. The appellant argued that the arbitrators had no power to award interest on …

STATE OF ORISSAversusSHRI B.K. ROUTRAY

1999 INSC 8Appeal(s) allowed

The State of Orissa appealed an arbitral award that granted interest for the pre‑reference period of 31‑Mar‑1977 to 20‑Mar‑1980, a period that preceded the commencement of the Interest Act, 1978. The award was made on 12‑Oct‑1982, after the Act had come into force, raising the question whether the …

STATE OF U.P.versusHARISH CHANDRA AND CO.

1998 INSC 422Disposed off

The State of U.P. entered into a contract with Harish Chandra & Co. for excavation and construction work, which the contractor failed to complete, leading the State to finish the work through other agencies and incur extra costs. The dispute over payment was referred to arbitration, where the …

LIVING MEDIA INDIA LTD. AND ANR. ETC.versusUNION OF INDIA AND ORS.

1998 INSC 403Disposed off

The petitioners, including Living Media India Ltd., challenged Notification No. 49/89 Customs which imposed a 30% ad valorem duty on glazed newsprint imported for news magazines between 1 March 1989 and 24 January 1990. The Union later offered to levy only 15% and to refund any excess, subject to …

RAJINDER KRISHAN KHANNA AND ORS.versusUNION OF INDIA AND ORS.

1998 INSC 393Disposed off

The appellants, owners of agricultural land and houses in Panipat, filed a writ petition alleging that effluent discharge from National Fertilizer Ltd's plant damaged their crops, mango orchards, residential buildings and rendered the land unfit for cultivation. The High Court dismissed the petition …

B.V. RADHA KRISHNAversusSPONGE IRON INDIA LTD.

1997 INSC 230Appeal(s) allowed

The appellant contracted to transport waste and finished products for the respondent. A dispute arose and the appellant invoked Section 20 of the Arbitration Act, 1940, leading to a sole arbitrator’s award of Rs 5,29,864.55 with 18% interest from 1 April 1983. The City Civil Court confirmed the …

STATE OF ORISSAversusB.N. AGARWALLA

1997 INSC 77Dismissed

The Supreme Court examined whether an arbitrator under the Arbitration Act, 1940 could award interest for three distinct periods – pre‑reference, pendente lite, and post‑award – in light of the Interest Act, 1978 and contractual terms. It held that an arbitrator may award pre‑reference interest only …

SUDHIR BROTHERSversusDELHI DEVELOPMENT AUTHORITY AND ANR.

1995 INSC 745Appeal(s) allowed

The appellant Sudhir Brothers were awarded a construction contract by the Delhi Development Authority. Disputes led to a reference to arbitration on 1 April 1984; the arbitrator entered the reference on 8 February 1985 and rendered an award on 15 July 1987, granting the appellant the contract sum …

M/S. DURGA RAM PRASADversusGOVT. OF ANDHRA PRADESH

1994 INSC 539Dismissed

The appellant, a contractor, entered into a contract to construct a food‑grains godown for the Government of Andhra Pradesh. The engineer withheld part of the payment alleging that the work was not executed as per the contract. The dispute was referred to an arbitrator who awarded the contractor the …

RENUSAGAR POWER CO. LTD. ETC.versusGENERAL ELECTRIC CO. ETC.

1993 INSC 342Dismissed

Renusagar Power Co. entered into a contract with General Electric for the supply of equipment for a power plant, which later gave rise to disputes and an ICC arbitration. The arbitral tribunal awarded US$12,215,622.14, including regular interest, delinquent interest, compensatory damages, and costs. …

FERRO ALLOYS CORPN. LTD. AND ORS.versusA.P. STATE ELECTRICITY BOARD AND ORS

1993 INSC 155Disposed off

The Supreme Court considered multiple writ petitions filed by industrial consumers, including Ferro Alloys Corp., challenging the terms of electricity supply imposed by various State Electricity Boards. The issues revolved around the validity of Section 49 of the Electricity (Supply) Act, 1948, the …

STATE OF ORISSAversusB.N. AGARWALA

1992 INSC 322Case Partly allowed

The State of Orissa contracted B.N. Agarwala to construct an irrigation project. After completion, Agarwala claimed extra work payments, and the dispute was referred to the Superintending Engineer, who acted as sole arbitrator and awarded Rs.1,59,298, including Rs.61,086.61 as interest for the …

HIND BUILDERS ETC.versusUNION OF INDIA AND VICE-VERSA

1990 INSC 153Appeal(s) allowed

The contractors (Hind Builders) were awarded Rs.57,47,198 by two arbitrators for work on the Metro Railway Project, including Rs.6,76,540 as interest. The Calcutta High Court reduced the award on two grounds: the amount for earth consolidation (item c(xii)) and the period for pendente lite interest. …

DANDASI SAHUversusSTATE OF ORISSA

1989 INSC 369Dismissed

The contractor Dandasi Sahu claimed payment for work and interest before an arbitrator, later filing a supplemental claim and a consolidated abstract totalling Rs.31.44 million. The arbitrator awarded a lump sum of Rs.25.00 million with 9% interest, which the State of Orissa challenged. The High …

SECRETARY TO THE GOVT. OF ORISSA & ANR.versusSARBESWAR ROUT

1989 INSC 301Case Partly allowed

The Secretary to the Government of Orissa entered into a contract for works with S. Rout, which later gave rise to a dispute referred to arbitration. The arbitrator awarded interest, which the appellant challenged under Section 39 of the Arbitration Act, 1940. The Supreme Court examined whether the …

STATE OF ORISSAversusNIRANJAN SWAIN

1989 INSC 241Case Partly allowed

The State of Orissa contracted Niranjan Swain for construction of an earth dam and a dispute over the balance payment, security deposit and interest was referred to an arbitrator under the contract’s arbitration clause. The arbitrator awarded a lump‑sum of Rs 21,11,835 inclusive of interest, which …

GUJARAT WATER SUPPLY & SEWERAGE BOARDversusUNIQUE ERECTORS {GUJARAT) (P) LTD. & ANR.

1989 INSC 28Disposed off

The Gujarat Water Supply & Sewerage Board entered into contracts with Unique Erectors for a water‑supply scheme and later referred disputes arising under clause 30 of the contract to arbitration. A sole arbitrator was appointed, decided the arbitrability of the claims, and issued a lump‑sum award on …

EXECUTIVE ENGINEER IRRIGATION GALIMALA & ORS.versusABAADUTA JENA

1987 INSC 259Disposed off

The Supreme Court examined whether an arbitrator, appointed without court intervention, could award interest for the period before the reference and for the pendente lite period of the arbitration. It held that an arbitrator is not a court within the meaning of CPC s.34 and therefore cannot award …