In a recent case, the question before the Supreme Court was
whether interest could be levied during the pendency of a
litigation.
In a recent case, Garg Builders Vs Bharat Heavy Electricals
Ltd, the question before the Supreme Court was whether
interest could be levied during the pendency of a litigation
(pendente lite interest), when the parties had agreed in the
contract to not have any interests awarded.
The question was whether the contract itself was ultra vires the
(Section 28 of the) Contract Act. The arbitrator had awarded the
interest; the Supreme Court struck it down, saying that the
arbitrator could not award the interest when it was contractually
barred by the contract.
