M/S Sumitomo Heavy Industries Ltd vs Oil & Natural Gas Company

The Supreme Court addressed the appeal against the Bombay High Court's decision to set aside an arbitration award under the Arbitration Act, 1940. The Court held that the umpire's award, which directed the respondent to reimburse the appellant for income tax paid under Section 44BB of the Income Tax Act, was not perverse and that the umpire had applied his mind to the contract clauses. The Court reinstated the umpire's award, emphasizing that the reimbursement was a necessary cost arising from a change in law, thus overturning the High Court's ruling.