VISHWANATH SOOD vs UNION OF INDIA & ANR.

The Supreme Court held that under the Arbitration Act, 1940, specifically Sections 3, 14, and 25, the determination of compensation for delay in execution of work, as per Clause 2 of the contract, was exclusively within the jurisdiction of the Superintending Engineer. The Court found that the Division Bench correctly restored the arbitrator's award, stating that a bona fide dispute regarding compensation could be arbitrated under Clause 25 since no specific resolution mechanism was provided in Clause 2. The appeal was dismissed, affirming the arbitrator's authority to award compensation despite the contractor's objections.