STATE OF RAJASTHAN vs M/S. NAV BHARAT CONSTRUCTION COMPANY

The Supreme Court upheld the Rajasthan High Court's decision to refer all claims to arbitration under Section 20 of the Arbitration Act, 1940, emphasizing that it is the Arbitrator's role to determine the validity of claims. The Court affirmed the Umpire's award of Rs. 29,96,060 to the Respondent, rejecting the Appellants' bias allegations against the Umpire as unsubstantiated. The judgment reinforces the principle that arbitration agreements must be honored and disputes resolved through the agreed-upon arbitration process.