EASTERN COALFIELDS LTD. vs SANJAY TRANSPORT AGNECY

The Supreme Court held that the arbitration clause in the excavation contract, specifically clause No. 14, which pertains to disputes between Public Sector Enterprises and Government Departments, is valid and enforceable under the Arbitration and Conciliation Act, 1996. The Court clarified that the arbitration process outlined in the clause, which excludes the applicability of the Arbitration Act, 1940, is binding on the parties. The Court upheld the Calcutta High Court's order referring the dispute to arbitration, affirming the importance of adhering to the agreed arbitration mechanism.