TATA HYDRO ELECTRIC POWER SUPPLY LTD&ORS vs UNION OF INDIA

The Supreme Court upheld the High Court's decision to allow the Arbitration Petition under Section 34 of the Arbitration and Conciliation Act, 1996, which challenged the Umpire's award on grounds of an error of law apparent on the face of the award. The Court emphasized that the arbitration clause in the Power Supply Agreement, executed under the Indian Electricity Act, 1910, mandates that disputes be resolved through arbitration, and the findings of the Umpire must be legally sound. The appeal was dismissed, affirming the lower court's ruling.