Case Law Analysis
|Bombay High Court
Section 31(7)(a) Arbitration Act | Arbitrators Cannot Deviate from Contractual Interest Rates: Bombay HC Sets Aside Award
Bombay High Court rules that arbitral awards must strictly adhere to contractual interest rate clauses under Section 31(7)(a) of the Arbitration Act. The court set aside an award granting 18% compounded interest, remanding the dispute for fresh arbitration, reinforcing that arbitrators cannot override agreed terms even under judicial review.