K.V. GEORGE vs SECRETARY TO GOVT., WATER AND POWERDEPARTMENT, TRIVANDRUM &

The Supreme Court ruled that under Sections 30, 33, and 41 of the Arbitration Act, 1940, an arbitrator must consider both claims and counterclaims of the parties; failure to do so constitutes misconduct. The Court held that the principle of res-judicata applies to arbitration proceedings, affirming the High Court's decision to set aside the Sub-Judge's order which had made the arbitrator's award a rule of the Court without considering the counterclaim. Consequently, the Court emphasized the necessity for comprehensive consideration of all claims in arbitration.