LatestLegal Updates 16 October 2026
Supreme Court Bars Pre‑Reference with “Or Otherwise” Clause
India’s Supreme Court ruled that the phrase “or otherwise” in a contract creates an absolute bar on any pre‑reference or pendente‑lite interest claims, confirming that arbitral tribunals cannot entertain such claims once the clause is invoked. The decision stems from a 2016 award termination dispute and clarifies contractual interpretation for future arbitration.
The Supreme Court of India clarified that the contractual phrase “or otherwise” serves as a comprehensive bar on pre‑reference and pendente‑lite interest claims. The ruling arose from a 2016 arbitration award termination case.
- The court held that an arbitral tribunal has no jurisdiction to revisit claims barred by the clause.
- Parties must ensure clear drafting, as the phrase will preclude any later challenges to interest calculations.
Read the full judgment here.
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