HLV Limited (Formerly known as Hotel LeelaVenture Pvt. Ltd.) v. PBSAMP Projects Pvt. Ltd.

Court – Supreme Court
Citation – SLP (Civil) No. 10732 of 2024
Date – 24.09.2025

The Hon’ble Supreme Court has held that additional post-award interest cannot be claimed under Section 31(7)(b) if Award fixed interest rate till payment.

The Court held,

“30. Therefore, reliance placed by the respondent on Hyder Consulting (supra) to claim post-award interest is misplaced. That principle would apply only when the arbitral tribunal leaves a matter unqualified or is silent. In the present case the arbitral tribunal bound by the MoU and exercising its statutory discretion had already specified the interest rate (21% per annum) and the duration (until repayment). As held in Morgan Securities and Credits Private Limited (supra), reaffirmed in Delhi Airport Metro Express Private Limited (supra) and explained in S.A. Builders Limited (supra), once parties agree on the interest regime, the arbitrator’s role is confined to enforcing it and the courts would not rewrite or enlarge the award by introducing further interest at the execution stage.

31. The MoU did not stipulate compounding of interest; the arbitral tribunal did not award compoundinterest; therefore, respondent cannot at the stage of execution seek to introduceclaim of compound interest bydrawing on general principles. Allowing such a claim would amount to rewriting the award at the stage of execution which is impermissible.”

Please reach out to us at rohit.lalwani@amlegals.com in case of any query.

Leave a Reply

Your email address will not be published. Required fields are marked *

 

Disclaimer & Confirmation

As per the rules of the Bar Council of India, law firms are not permitted to solicit work and advertise. By clicking on the “I AGREE” button below, user acknowledges the following:

    • there has been no advertisements, personal communication, solicitation, invitation or inducement of any sort whatsoever from us or any of our members to solicit any work through this website;
    • user wishes to gain more information about AMLEGALS and its attorneys for his/her own information and use;
  • the information about us is provided to the user on his/her specific request and any information obtained or materials downloaded from this website is completely at their own volition and any transmission, receipt or use of this site does not create any lawyer-client relationship; and that
  • We are not responsible for any reliance that a user places on such information and shall not be liable for any loss or damage caused due to any inaccuracy in or exclusion of any information, or its interpretation thereof.

However, the user is advised to confirm the veracity of the same from independent and expert sources.