S.A.I.L. LTD. vs J.C. BUDHARAJA GOVT. & MINING CONTRACTOR

The Supreme Court upheld the decision of the Patna High Court, confirming the order of the Subordinate Judge under Section 39(1)(vi) of the Arbitration Act, 1940, which made the arbitration award rule of court with 8% interest from the date of the decree. The Court found that the supplementary agreement executed on 20th December 1980 between the Steel Authority of India Limited and the contractor was valid and enforceable, despite the delay in project completion. The ruling established that the transfer of obligations under the Public Sector Iron and Steel Companies (Re-structuring and Miscellaneous Provisions) Act, 1978 did not affect the enforceability of the contract.