RAM NATH INTNL. CONSTRN. P.LTD vs STATE OF U P

The Supreme Court addressed the arbitration agreement under Clause 51 of the contract between M/s. Ram Nath International Construction Pvt. Ltd. and the State of U.P., emphasizing that disputes regarding extra items of work must be resolved through arbitration as per the Indian Arbitration Act, 1940. The Court held that the arbitrator's decision is final and binding, and performance under the contract must continue during arbitration. The judgment confirmed the validity of the arbitration clause and the appointment of the arbitrator, thereby upholding the arbitration award dated 23.5.1994.