#Severability

The Delhi High Court held that an arbitral award granting 9% interest on a Performance Bank Guarantee from the date of invocation violated public policy under Section 34(2)(b)(ii) where the contract expressly excluded interest under Clause 13(2). The court set aside this portion of the award while upholding the rejection of the delayed shipment claim. The ruling reinforces that arbitrators cannot rewrite contractual terms on interest, and such overreach renders an award contrary to fundamental policy of Indian law.

The Delhi HC held that a Section 34 petition is barred only if filed after 90 days from receipt of the award, not its date, and directors are liable only with a personal guarantee or fraud, clarifying limitation and narrowing director exposure in loan agreements.

The Karnataka HC ruled a 3-year-8-month delay in the final declaration under the KIAD Act broke statutory connectivity, but severability confined relief to landowners who challenged proceedings and refused compensation. Others were barred by estoppel and laches. The decision prevents procedural delays from automatically invalidating entire acquisition schemes where parties have acquiesced.