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38.The challenge to refund of bank guarantee is also linked to the finding regarding wrongful termination. Once the arbitrator found that failure to execute work was not attributable to the contractor, invocation of the bank guarantee lost its contractual basis. The arbitrator has therefore directed refund of the encashed amount. This follows logically from the factual findings and does not amount to grant beyond jurisdiction.

39.With regard to interest on blocked amounts and future interest, the arbitrator has exercised discretion after considering that money was withheld without justification. Interest is compensatory in nature and intended to offset deprivation of use of money. The rate awarded cannot be said to be shockingly high or prohibited under law. This Court finds no reason to interfere with such discretionary relief.