Food Corporation Of India vs M/S A.M. Ahmed & Co. And Anr

The Supreme Court upheld the High Court's decree in favor of the contractor, affirming the arbitrator's award under the Arbitration and Conciliation Act, 1996. The Court found that the dispute regarding escalation of rates was arbitrable despite the absence of an escalation clause in the contract, as the parties had agreed to refer the matter to arbitration. The Court confirmed the award of Rs. 57,10,517 and Rs. 22,84,207 with interest, emphasizing the binding nature of arbitration awards under Section 34 of the Arbitration Act.