M/S SUMITOMO HEAVY INDUSTRIES LTD. vs OIL & NATURAL GAS COMPANY

The Supreme 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 perverse as it failed to consider the contractual obligations outlined in clauses 13.2.7 and 23 of the General Conditions of Contract. The Court affirmed the High Court's decision to set aside the umpire's award, establishing that an arbitrator must apply their mind to the material facts and contract clauses. Consequently, the appeal was dismissed, upholding the High Court's ruling.