NATIONAL FERTILIZERS vs PURAN CHAND NANGIA

The Supreme Court interpreted the variation clause in a contract under the Indian Arbitration Act, 1940, specifically addressing whether the 25% variation should be calculated based on net overall increases or total variations. The Court held that the contractor could claim market rates if the total variations exceeded 25% of the contract price, thereby validating the High Court's decision to uphold the arbitration award. The appeal was dismissed, affirming the contractor's right to seek higher rates due to the variations exceeding the stipulated percentage.