Shyama Charan Agarwala & Sons vs Union Of India

The Supreme Court upheld the arbitration process under Clause 70 of the General Conditions of the Contract, affirming that disputes arising from the construction agreements between the Contractor and the Union of India were validly referred to arbitration. The Court emphasized that the appointment of the arbitrator was in accordance with the contractual provisions, and the claims made by the Contractor were legitimate under the terms of the agreements. The judgment of the Bombay High Court was set aside, allowing the arbitration award to stand.