Contractual Bar on Interest and the Interpretation of Residuary Clauses in Arbitration Law

sketch of the Supreme Court of India
Case
MS SHARMA ENTERPRISES v. NATIONAL BUILDING CONSTRUCTION CORPORATION (Supreme Court of India, 15-10-2026)
Law
Arbitration and Conciliation Act.

Highlights of the Judgment:

  • Examination of whether a contractual clause bars pre-reference and pendente lite interest under Section 31(7)(a) of the Arbitration and Conciliation Act, 1996.
  • Judicial interpretation of the residuary expression "or otherwise" in commercial contracts to determine comprehensive interest prohibitions.
  • Distinction between party-autonomous pre-award interest and mandatory statutory post-award interest under Section 31(7).
  • Application and limits of the doctrine of ejusdem generis in construing independent disjunctive terms in arbitration clauses.