FOOD CORPORATION OF INDIA vs SREEKANTH TRANSPORT

The Supreme Court ruled that in government contracts, 'excepted matters' are to be adjudicated by a designated senior officer and cannot be referred to arbitration. The Court emphasized that the arbitration clause excludes these excepted matters, which are clearly defined in the contract, thus affirming the High Court's error in allowing arbitration for such disputes. The judgment reinforces the principle that parties must adhere to the terms of their agreement regarding dispute resolution, particularly in government contracts.