YOGRAJ INFRAS.LTD. vs SSAMG YONG ENG.& CONSTRN.CO.LTD.

The Supreme Court addressed the arbitration clause in the contract between the National Highways Authority of India (NHAI) and SSANG YONG Engineering, emphasizing that disputes arising from the agreement must be resolved through arbitration in Singapore as per Clause 27. The Court held that the invocation of bank guarantees by NHAI was valid, as the petitioner failed to perform the contractual obligations, leading to the termination of the contract under Clause 23.2. The ruling reinforced the enforceability of arbitration agreements and the binding nature of bank guarantees in contractual disputes.