U.P. HOTELS ETC. vs U.P. STATE ELECTRICITY BOARD

The Supreme Court held that under Sections 14, 17, 30, and 33 of the Arbitration Act, 1940, an award can be set aside if it is based on a wrong proposition of law. The Court found that the Umpire's award, which upheld the binding nature of the Bulk Supply Agreement despite the unilateral changes made by the U.P. State Electricity Board, was valid. However, the High Court's decision to set aside the award was upheld on the grounds that the Indian Aluminium Co. case was not applicable, leading to the conclusion that the arbitration reference was indeed unilateral.