Oil and Natural Gas Corporation Ltd. v. G & T Beckfield Drilling Services Pvt. Ltd 2025 INSC 1066 - S.31 Arbitration Act - Power To Award Pendente Lite Interest
Arbitration and Conciliation Act, 1996 - Section 31- Arbitral tribunal can be denuded of its power to award pendente lite interest only if the agreement/ contract between the parties is so worded that the award of pendente lite interest is either explicitly or by necessary implication - A clause merely barring award of interest on delayed payment by itself will not be readily inferred as a bar to award pendente-lite interest by the arbitral tribunal. (Para 25) The arbitral tribunal has jurisdiction to award interest for three distinct periods, namely, pre-reference, pendente lite, and future i.e., post-award. Award of pre-reference and pendente-lite interest is subject to the agreement between the parties whereas post award interest is statutorily governed and is not subject to the agreement between the parties.- Clause (b) does not give the parties the right to ‘contract out’ interest for the post award period. (Para 12)
Case Info
The case is).
Case Name and Neutral Citation
- Case Name: Oil and Natural Gas Corporation Ltd. v. M/S G & T Beckfield Drilling Services Pvt. Ltd.
- Neutral Citation: 2025 INSC 1066
Coram (Judges)
- Judges:
- Hon’ble Mr. Justice Pamidighantam Sri Narasimha
- Hon’ble Mr. Justice Manoj Misra
Judgment Date
- Date: September 2, 2025
Caselaws and Citations Referred
The judgment refers to several Supreme Court decisions:
- Union of India v. Bright Power Projects (India) Private Limited(2015) 9 SCC 695, paragraph 13
- Sayeed Ahmed and Company v. State of Uttar Pradesh and others(2009) 12 SCC 26, paragraphs 15 and 16
- Sree Kamatchi Amman Constructions v. Divisional Railway Manager (Works), Palghat and others(2010) 8 SCC 767, paragraph 19
- Garg Builders v. Bharat Heavy Electricals Limited(2022) 11 SCC 697, paragraphs 20 to 23
- Jaiprakash Associates Limited (JAL) v. Tehri Hydro Development Corporation (India) Ltd. (THDC)(2019) 17 SCC 786, paragraph 13.2
- Pam Developments Private Limited v. State of West Bengal and another(2024) 10 SCC 715
- R.P. Garg v. Chief General Manager, Telecom Department and Others2024 SCC OnLine SC 2928, paragraph 11
- Irrigation Deptt., State of Orissa v. G.C. Roy(1992) 1 SCC 508
- Union of India v. Ambica Construction(2016) 6 SCC 36
- Dhenkanal Minor Irrigation Division v. N.C. Budharaj(2001) 2 SCC 721
- Ambica Construction v. Union of India(2017) 14 SCC 323
- Reliance Cellulose Products Limited v. Oil And Natural Gas Corporation(2018) 9 SCC 266
- Tehri Hydro Development Corpn. Ltd. v. Jai Prakash Associates Ltd.(2012) 12 SCC 10
- Ferro Concrete Construction (India) Pvt. Ltd. v. State of Rajasthan2025 SCC OnLine SC 708
Statutes/Laws Referred
- Arbitration and Conciliation Act, 1996
- Section 31(3): Requirement for reasoned award
- Section 31(7): Power to award interest
- Section 34: Setting aside arbitral award
- Section 37: Appeal provisions
- Indian Contract Act, 1872
- Section 28: Validity of agreements restricting legal proceedings
