Contractual claims procedure may be waived by conduct, and arbitral interest is permissible absent an express contractual bar.

A contractual claims procedure requiring monthly submission of claims and prior reference of disputes to the engineer was treated as waived where the employer itself prepared the interim and final bills and controlled the billing process. The contractor's claims were therefore not barred, and the tribunal's factual finding that the individual claims were not shown to be time-barred was upheld without interference under section 34 or section 37. The arbitral tribunal was also entitled to award interest because the contract did not exclude that power, and section 31(7)(a) of the Arbitration and Conciliation Act, 1996 permits interest unless contractually barred. The challenge to the award failed.

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Issues: (i) Whether the contractual requirements for monthly submission of claims and prior reference of disputes to the engineer barred the contractor's claims, including on the ground of limitation. (ii) Whether the arbitral tribunal could award interest in the absence of an express contractual provision.

Issue (i): Whether the contractual requirements for monthly submission of claims and prior reference of disputes to the engineer barred the contractor's claims, including on the ground of limitation.

Analysis: The contract required monthly particulars of claims and a prior decision by the engineer, but the record showed that the employer itself prepared the interim and final bills and thereby assumed control over the billing process. On that basis, the contractual procedure was treated as waived by conduct and consent. The claims were therefore assessed after final certification of the bills, and the tribunal further found that the appellant had not placed material claim-wise to show that the individual claims were time-barred. The finding was treated as a factual one based on the documents and interpretation of the contract, and no perversity was shown to justify interference under section 34 or section 37.

Conclusion: The objection based on the contractual procedure and limitation failed, and the tribunal's finding was upheld in favour of the respondent.

Issue (ii): Whether the arbitral tribunal could award interest in the absence of an express contractual provision.

Analysis: The contract did not prohibit payment of interest. Section 31(7)(a) of the Arbitration and Conciliation Act, 1996 empowers the arbitral tribunal to award interest for such period and at such rate as it deems fit, unless the contract excludes that power. No such exclusion existed here.

Conclusion: The award of interest was within the tribunal's authority and the objection failed.

Final Conclusion: The challenge to the arbitral award disclosed no ground for interference, and the appellate court declined to disturb the concurrent findings.

Ratio Decidendi: A contractual claims procedure may be waived by the parties' conduct, and in the absence of an express contractual bar, an arbitral tribunal may award interest under section 31(7)(a) of the Arbitration and Conciliation Act, 1996.

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