STATE OF RAJASTHAN vs M/S. NAV BHARAT CONSTRUCTION CO.

The Supreme Court upheld the validity of the arbitrator's award, stating that the appellant failed to raise a counter-claim or set-off before the arbitrator, as required under the Arbitration and Conciliation Act, 1996. The Court found that the second reference to the arbitrator was not barred by Order 2 Rule 2 CPC, as the claims arose after the first reference. The Court also ruled that the arbitrator had the authority to award interest despite the appellant's claims regarding Clause 23 of the agreement, which were not previously contested. The judgment confirmed the High Court's decision to uphold the arbitrator's award.