Leela Hotels Ltd vs Housing & Urban Dev.Corp.Ltd

The Supreme Court upheld the arbitration award in favor of Leela Hotels Ltd., confirming that HUDCO was liable to pay damages and interest as per the terms of the sub-lease agreement. The Court noted that the cancellation of the lease due to default in payment of the third installment was valid, but the Arbitrator's decision to award damages and interest was justified under the arbitration clause. The Court emphasized the binding nature of arbitration awards under the Arbitration and Conciliation Act, 1996, particularly Sections 34 and 37, and dismissed HUDCO's appeal against the award.