M/S.Sathyanarayana Brothers (P) Ltd vs Tamil Nadu Water Supply & Drainage Board

The Supreme Court addressed the arbitration proceedings between M/s. Sathyanarayana Brothers (P) Ltd. and the Tamil Nadu Water Supply & Drainage Board regarding claims arising from a contract for the Veeranam project. The Court held that the Division Bench's decision to set aside the learned single Judge's order was erroneous, emphasizing the need for fair compensation in light of delays caused by external factors, including foreign exchange issues. The Court ultimately reinstated the single Judge's order, allowing the contractor's claims for additional compensation due to increased costs.