S.K.JAIN vs STATE OF HARYANA

The Supreme Court upheld the 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 contractor to deposit 7% of the total claim before arbitration could proceed. The Court found that the stipulation was valid and did not conflict with the Arbitration and Conciliation Act, 1996, specifically Sections 31(8) and 38, nor with the Indian Contract Act, 1872. The Court held that the contractor's claim of unequal bargaining power was insufficient to invalidate the contractual provision, affirming the High Court's ruling.