New Delhi, Feb. 19 -- The Supreme Court has held that where a contract does not provide for payment of interest on delayed payments, and expressly prohibits such claims, a party cannot claim interest.

A Bench comprising Justices M.M. Sundresh and N. Kotiswar Singh set aside a judgment of the Kerala High Court, which had upheld the award of interest on delayed payments in favour of a contractor.

Dispute Over Delayed Payment

The dispute stemmed from a 2013 contract between the Kerala Water Authority and a contractor to build a sewage treatment plant at Government Medical College, Calicut.

Although the project was completed in July 2014, the Rs 86.64 lakh payment was released only in March 2016 after court intervention. The contractor th...