State Of U.P vs Allied Constructions

The Supreme Court upheld the arbitrator's award of Rs. 12,55,365 to the respondent for losses due to flooding, rejecting the appellant's claim of force majeure under Clause 47 of the contract. The Court found that the appellant failed to provide evidence that the flooding was due to unprecedented rain, thus Clause 47 did not apply. The Court reiterated that an arbitrator's decision can only be set aside under Sections 30 and 33 of the Arbitration Act, 1940 if misconduct or other specified conditions are met, which was not the case here.