Chitambaresh, J.

1.The arbitral award to the extent it granted interest on the amount claimed was sought to be set aside by recourse to Section 34(2) of the Arbitration and Conciliation Act, 1996 ('the Act' for short). The same was repelled by the order impugned leading to this appeal under Section 37(1)(c) of the Act contending inter-alia that the Arbitral Tribunal has erred in interpreting the arbitration agreement.

2. We heard Mr.C.S.Dias and Mr.Raymond George Dias, Advocates on behalf of the appellant and Mr. Jacob Sebastian, Advocate on behalf of the respondent.

3. Clause 16(2) of the General Conditions of Contract governing the parties reads as follows:

“(2) No interest will be payable upon the earnest money or the security deposit or amounts payable to the Contractor under the contract, but Government Securities deposited in terms of sub-clause (1) of this clause will be repayable with interest accrued thereon.”

(emphasis supplied)

Section 31(7) of the Act dealing with the contents of the arbitral award as regards interest is as follows:

“(7) (a). Unless otherwise agreed by the parties, where and insofar as an arbitral award is for the payment of money, the arbitral tribu