New Delhi, Sept. 5 -- The Supreme Court recently stated that if a contract says no interest on late payments and doesn't mention pendente lite interest during the ongoing case, the arbitral tribunal can still grant such an interest.

However, the apex court emphasized that if an agreement or contractual clause has categorically mentioned that there would be no provision for pendente lite, i.e., interest during the pendency of the matter, either expressly or impliedly, such a term or clause would deprive the arbitral tribunal of the ability to allow such an award of pendente lite.

Hearing the matter ONGC Ltd. v. M/S G&T Beckfiled Drilling Services Pvt Ltd., the apex court held that Clause 18.1 of the underlying contract did not bar the ar...