Indian Oil Corp.Ltd vs M/S Sps Engineering Ltd

The Supreme Court addressed the arbitration proceedings initiated by the respondent contractor under Section 11 of the Arbitration and Conciliation Act, 1996, following the termination of their contract by Indian Oil Corporation Limited (IOCL) for non-performance. The Court held that the arbitrator has the authority to adjudicate on the claims and counterclaims arising from the contract, including the additional costs incurred by IOCL due to the termination. The Court emphasized that the arbitration agreement is binding and the arbitrator's jurisdiction extends to all disputes arising from the contract, thus upholding the appointment of the arbitrator by the Delhi High Court.