K. Ramasamy vs State Of T.N. And Ors.

The Supreme Court set aside the High Court's judgment that interfered with the arbitrator's award regarding additional claims for extra lead in material sourcing under Clause 106.02 of the contract. The Court clarified that while the contractor is not entitled to expenses for developing new sources, they are entitled to adjustments for increased costs due to longer haul distances. The Court held that the High Court misinterpreted the contract clause, thus reinstating the arbitrator's award of Rs. 27,95,215/- to the contractor.