M/S. SANT RAM & COMPANY vs THE STATE OF RAJASTHAN & ORS.

The Supreme Court held that under Section 41(b) of the Arbitration Act, 1940, the Court has the authority to intervene in arbitration proceedings and grant interim relief, including injunctions, even if the arbitration is pending without direct court intervention. The Court emphasized that allowing the respondent to adjust amounts due from other contracts during arbitration would undermine the arbitration process. The appeal was allowed, reversing the High Court's decision that denied the maintainability of the application for interim relief.