M/S. MARUTI UDYOG LTD. vs MAHENDRA C. MEHTA .

The Supreme Court addressed a contempt petition arising from a dispute between a car manufacturer and M/s. Mahalaxmi Motors Limited regarding unpaid dues of Rs. 7.63 crores. The Court emphasized the binding nature of the arbitration agreement under Clause 57 of the contract and noted that the respondents had admitted their liability. The Court held that the matter should be referred to arbitration as per Section 8 of the Arbitration and Conciliation Act, 1996, contingent upon the respondents depositing the admitted amount or providing security.