MAHARSHI DAYANAND UNIVERSITY vs ANAND COOP. L/C SOCIETY LTD.

The Supreme Court addressed the validity of an arbitration clause in a tender agreement, specifically Clause 25A, which mandated that disputes be first referred to the Executive Engineer and subsequently to the Vice-Chancellor for arbitration. The Court held that the arbitration clause was binding and enforceable, emphasizing that the contractor must adhere to the stipulated procedure for dispute resolution. The appeal was allowed, affirming the enforceability of the arbitration agreement as per the terms laid out in the contract.