M.R. Engineers & Contractors Pvt. Ltd vs Som Datt Builders Ltd

The Supreme Court interpreted sub-section (5) of Section 7 of the Arbitration and Conciliation Act, 1996, determining that an arbitration clause in a main contract is incorporated by reference into a sub-contract when the sub-contract explicitly states it shall be executed on the terms of the main contract. The Court held that the arbitration provision in the main contract applies to disputes arising under the sub-contract, thereby affirming the enforceability of arbitration in this context.