LexOIL AND NATURAL GAS CORPORATION LTD. versus M/S G & T BECKFIELD DRILLING SERVICES PVT. LTD.
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[2025] 9 S.C.R. 507 : 2025 INSC 1066 Oil and Natural Gas Corporation Ltd. v. M/s G & T Beckfield Drilling Services Pvt. Ltd. (Civil Appeal No. 11324 of 2025) 02 September 2025 [Pamidighantam Sri Narasimha and Manoj Misra,* JJ.] Issue for Consideration Whether Clause 18.1 of the agreement proscribed payment of pendente lite interest on the sum awarded. Headnotes† Arbitration and Conciliation Act, 1996 – s.31(7)(b) – Award of interest pendente lite on the sum awarded – Award affirmed by High Court – Challenge to – Clause 18.1 of the agreement relied upon by the appellant to contend that the agreement between the parties proscribed grant of pendente-lite interest: Held: 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 barred – 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 – Clause 18.1 when read as a whole, does not expressly or by necessary implication proscribes grant of pendente lite interest by the arbitral tribunal – It merely says that there would be no interest payable by the Corporation on any delayed payment/disputed claim – Neither it bars the arbitral tribunal from awarding pen dente lite interest nor it says that interest would not be payable in any respect whatsoever – Thus, clause 18.1 would not limit the statutory power of the arbitral tribunal to award pendente-lite interest – No error in the award of pendente lite interest warranting any interference with the award – Post-award interest is in line with s.31(7)(b) as it then existed – No merit in the appeal. [Paras 25, 26] Arbitration and Conciliation Act, 1996 – s.37(1) – Payment of interest by arbitral tribunal – Position of law, stated. [Para 12] * Author 508 [2025] 9 S.C.R. Supreme Court Reports Case Law Cited Union of India v. Bright Power Projects (India) Private Limited [2015] 6 SCR 488 : (2015) 9 SCC 695; Sayeed Ahmed and Company v. State of Uttar Pradesh and Others [2009] 10 SCR 841 : (2009) 12 SCC 26; Sree Kamatchi Amman Constructions v. Divisional Railway Manager (Works), Palaghat and Others [2010] 10 SCR 487 : (2010) 8 SCC 767; Garg Builders v. Bharat Heavy Electricals Limited [2021] 10 SCR 82 : (2022) 11 SCC 697; Jaiprakash Associates Ltd. v. Tehri Hydro Development Corporation (India) Ltd. [2019] 2 SCR 41 : (2019) 17 SCC 786; Pam Developments Private Limited v. State of West Bengal and Another [2024] 8 SCR 615 : (2024) 10 SCC 715; R.P. Garg v. Chief General Manager, Telecom Department and Others [2024] 9 SCR 763 : 2024 SCC OnLine SC 2928; Irrigation Deptt., State of Orissa v. G.C. Roy [1991] Supp. 3 SCR 417 : (1992) 1 SCC 508; Union of India v. Ambica Construction [2016] 2 SCR 810 : (2016) 6 SCC 36; Dhenkanal Minor Irrigation Division v. N.C. Budharaj [2001] 1 SCR 264 : (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] 6 SCR 618 : (2018) 9 SCC 266; Tehri Hydro Development Corpn. Ltd. v. Jai Prakash Associates Ltd. [2012] 8 SCR 813 : (2012) 12 SCC 10; Ferro Concrete Construction (India) Pvt. Ltd. v. State of Rajasthan [2025] 4 SCR 529 : 2025 SCC OnLine SC 708 – referred to. List of Acts Arbitration and Conciliation Act, 1996. List of Keywords Section 31(7) of Arbitration and Conciliation Act, 1996; Pendente lite interest; Power of Arbitral tribunal to award pendente lite interest; Payment of interest by arbitral tribunal; Agreement did not proscribe payment of pendente lite interest; Clause barred award of interest on delayed payment; No bar to award pendente-lite interest by the arbitral tribunal; Interest awarded not from the date of the award; Interest awarded from the date when the statement of claim was affirmed. Case Arising From CIVIL APPELLATE JURISDICTION: Civil Appeal No. 11324 of 2025 From the Judgment and Order dated 08.03.2019 of the Gauhati High Court in ARBA No. 03 of 2007 [2025] 9 S.C.R. 509 Oil and Natural Gas Corporation Ltd. v. M/s G & T Beckfield Drilling Services Pvt. Ltd. Appearances for Parties Advs. for the Appellant: Tushar Mehta, Solicitor General, Akshay Amritanshu, Ms. Drishti Saraf, Ms. Pragya Upadhyay, Ms. Swati Mishra. Advs. for the Respondent: Ms. Bharg
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