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 can be incorporated by reference into a sub-contract if the sub-contract explicitly states it shall be carried out on the terms of the main contract. The Court held that the arbitration clause in the main contract is applicable to disputes arising from the sub-contract, thereby allowing the appellant to invoke arbitration for their claims. The outcome affirmed the enforceability of the arbitration clause in the context of sub-contractual disputes.