ARTICLE
2 February 2026

SC Holds That Arbitral Tribunal Does Not Have Discretion To Deviate From Rate Of Interest Mutually Agreed By Parties Under Arbitral Award

AP
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The SC, in BPL Limited v. Morgan Securities and Credits Private Limited, held that the arbitral tribunal would have the discretion to grant interest, for the period...
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The SC, in BPL Limited v. Morgan Securities and Credits Private Limited,1 held that the arbitral tribunal would have the discretion to grant interest, for the period between the date on which the cause of action arises and the date of the award, only when there is no agreement to the contrary between the parties. The SC further observed that once the parties agree to a particular rate of interest to be charged (in this case 36%), they would be bound by it and such a rate of interest cannot then be challenged on the ground of being unconscionable or opposed to public policy.

Footnote

1. BPL Limited v Morgan Securities and Credits Private Limited (2025) SCC OnLine SC 2640.

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