UNION OF INDIA vs RAMAN IRON FOUNDRY

The Supreme Court held that under Section 41(b) of the Indian Arbitration Act, the High Court has the power to issue interim injunctions in relation to arbitration proceedings. The Court clarified that while it can issue such injunctions, they cannot direct payment of amounts due under other contracts unless those claims are admitted or adjudicated. The Court dismissed the appeal, affirming that the interim injunction did not violate the appellant's rights as it only restrained the appropriation of amounts towards the claim for damages, which was subject to arbitration.