TARAPORE & COMPANY vs COCHIN SHIPYARD LTD. COCHIN & ANR.

The Supreme Court examined the applicability of Clause 40 of the General Conditions of Contract in the context of an arbitration dispute regarding compensation for increased costs of imported pile-driving equipment. The Court held that the arbitrator had jurisdiction to decide the matter as it fell within the purview of the arbitration clause, and the award could not be set aside on the grounds of insufficient stamping or misconstruction of the clause. The Court upheld the award with a modification of the interest rate from 9.1/2% to 6%. Sections 30 and 33 of the Arbitration Act, 1940 were cited in the judgment.