Supreme Court Dismisses BWL Plea, Upholds Delhi High Court Ruling That BSNL Has Satisfied 2000 Arbitral Award

The Supreme Court on Friday refused to interfere with a Delhi High Court ruling declaring that a 2000 arbitral award in favour of BWL Limited against Bharat Sanchar Nigam Limited stands satisfied, concluding the dispute between the parties over the computation of post-award interest.

Dismissing a Special Leave Petition, a bench of Justice Pamidighantam Sri Narasimha and Justice Alok Aradhe observed, “We are not inclined to interfere with the impugned judgment and order passed by the High Court.”

The matter arises from an arbitral award dated September 26, 2000 passed in favour of BWL Limited, formerly Bhilai Wires Ltd., against Bharat Sanchar Nigam Limited. The arbitrator directed BSNL to pay Rs. 6,07,56,342 to BWL along with interest at 18.5 per cent per annum compounded on quarterly rests.

In October 2004, a Single Judge of the Calcutta High Court set aside the award. BWL filed an appeal. In June 2010, a Division Bench of the Calcutta High Court allowed the appeal in part, upheld the award with modifications, and altered the interest component.

The Division Bench awarded Rs.67,62,366 as pendente lite interest and directed that post-award interest would run only on the principal sums of Rs.48,23,819 and Rs.8,11,486. Post-award interest was directed to run from the date of the Division Bench judgment.

Both parties filed appeals before the Supreme Court. On April 12, 2023, the Supreme Court dismissed BSNL's appeal and partly allowed BWL's appeal. The Court held that the award had remained in force between September 26, 2000 and October 15, 2004, when it was set aside by the Single Judge, and that BWL was entitled to statutory interest for that period.

It observed, “For the above reasons, the impugned judgment is hereby modified; in addition to the interest directed by it (calculated on simple interest basis), the appellant Bhilai Wires Ltd. shall also be entitled to statutory interest on simple interest basis for the period 26.09.2000 to 15.10.2004.”

Subsequently, execution proceedings were initiated before the Delhi High Court. In an order dated November 19, 2025, Justice Amit Bansal recorded that the awarded amount had been paid and that the only issue remaining concerned the calculation of interest. The question before the Court was whether post-award interest was to be calculated only on the principal amounts or also on the lump sum amount awarded as pendente lite interest.

Rejecting the contention that post-award interest was payable on the pendente lite interest, the High Court held, “In my opinion, the Supreme Court did not modify the direction passed by the Division Bench directing payment of interest only on the principal amount. The only modification effected by the Supreme Court was in respect of the period for which the post-award interest was payable.”

The High Court concluded that no further amount towards interest was payable and held that the decree stood satisfied.

BWL challenged that order before the Supreme Court. The Supreme Court declined to interfere and dismissed the Special Leave Petition.

For Petitioner (BWL Limited): Senior Advocate Nakul Diwan, Advocates Monisha Handa, Mohit D. Ram (AOR), Nayan Gupta.

Click here to Read Delhi High Court 's Order dated 19.11.2025