THE STATE OF BIHAR vs M/s. KARAM CHAND THAPAR & BROTHERS LTD.

The Supreme Court held that Section 175(3) of the Government of India Act, 1935 does not mandate a specific mode of conferring authority, thus validating the arbitration agreement executed by an executive engineer authorized by the Secretary to the Government. The Court further ruled that the award sent by the arbitrator was the original document, and upon payment of requisite stamp duty under Section 35 of the Indian Stamp Act, 1899, it was effectively validated. The appeal by the State of Bihar was dismissed, upholding the decree based on the award.