B.N. AGARWALLA vs STATE OF ORISSA

The Supreme Court ruled on the applicability of Section 41A(7) of the Arbitration (Orissa Amendment) Act, 1982, which mandates that pending arbitration proceedings involving the State must be transferred to an Arbitration Tribunal. The Court held that since the award was made on the same day the amendment came into force, the arbitrator lacked jurisdiction, and thus the award was invalid. Consequently, the High Court's decision to allow the appeal against the Subordinate Judge's ruling was upheld, reinforcing the jurisdictional limits imposed by the amendment.