HSA | Dispute Resolution & Arbitration Monthly Update | September 2023

Larsen Air Conditioning & Refrigeration Company v. Union of India & Ors

Supreme Court of India | 2023 SCC Online SC 98

Background facts

• The dispute in this case arose from a contract entered into between the Appellant and the Union of India & Ors, pursuant to a tender. During the course of the work to be carried out under the contract, disputes arose between the parties and on April 22, 1997, the Union of India referred the matter to arbitration, where the proceedings closed on October 24, 1998. The Arbitral Tribunal issued its award on January 21, 1999, thereby directing the Respondent to pay 18% pendente lite and future compound interest rates on claims.
• The Union of India challenged the award under Section 34 of the Arbitration and Conciliation Act, 1996 (Act) before the District Court, which vide its judgment dated March 06, 2003 rejected the challenge, stating that the Union of India failed to provide any proof on their alleged grounds. Aggrieved,