S.K.Jain vs State Of Haryana & Anr

The Supreme Court upheld the Punjab and Haryana High Court's dismissal of a writ petition challenging the requirement under Sub-clause (7) of Clause 25-A of an agreement, which mandated the appellant to deposit 7% of the total claim before arbitration could proceed. The Court found that the provisions of the Arbitration and Conciliation Act, 1996, specifically Sections 31(8) and 38, do not allow contracting out of mandatory requirements, and the High Court's ruling was consistent with the precedent set in Municipal Corporation, Jabalpur v. M/s Rajesh Construction Company. The appeal was dismissed, affirming the legality of the deposit requirement as not unconscionable or arbitrary under the Indian Contract Act, 1872.