Rajasthan State Road Transport Corpn vs Indag Rubber Ltd

The Supreme Court upheld the validity of the arbitration award under Section 34 of the Arbitration and Conciliation Act, 1996, confirming that the Rajasthan State Road Transport Corporation was entitled to compensation due to the failure of Indag Rubber Limited to meet the warranty obligations regarding retreaded tyres. The Court emphasized that the warranty clause required a comparative assessment of tyre performance under similar conditions, and the Corporation's claims for damages were justified based on the evidence presented. The appeal against the High Court's order was dismissed, thereby enforcing the arbitration award in favor of the Corporation.