Legal Updates 24 September 2026
Supreme Court Bars Pre‑Reference Interest in NEEPCO Contract Dispute
The Supreme Court ruled that the Contract Clause prevents the application of pre‑reference interest in the NEEPCO case, overturning earlier expectations. IRCON, facing a ₹147 crore arbitration award, will contest the decision in Delhi High Court, arguing the clause should not bar interest claims.
Supreme Court Decision
- The Court held that the Contract Clause bars any pre‑reference interest from being awarded in the NEEPCO dispute.
- This ruling changes the financial landscape for the case, removing an expected interest component.
IRCON's Next Move
- IRCON plans to challenge the ₹147 crore arbitration award in the Delhi High Court.
- The company argues that the Contract Clause should not preclude interest claims and is seeking a reversal of the award.
*Read the full update on PSU Connect.*
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