K.N.SATHYAPALAN (DEAD) BY LRS. vs STATE OF KERALA

The Supreme Court upheld the High Court's decision regarding the validity of an arbitration award under the Arbitration Act, specifically addressing the jurisdiction of the Arbitrator post-suspension. The Court clarified that the authority of the Arbitrator could only be revoked under Section 5 of the Arbitration Act with court approval, and since both parties had agreed to extend the time for the award despite the Arbitrator's suspension, the award was deemed valid. The Court affirmed the award of Rs. 7,30,000/- for claim (a) related to financial losses due to interruptions caused by anti-social elements, establishing that the State's failure to act constituted a breach of duty.