M/S. GAYATRI PROJECT LTD. vs M/S. SAI KRISHNA CONSTRUCTION

The Supreme Court upheld the High Court's order under Section 11(5) and (6) of the Arbitration and Conciliation Act, 1996, directing the reference of disputes between the appellant and respondent to arbitration. The Court emphasized the binding nature of the arbitration clause in the agreement between the parties, which mandated that disputes be settled by a sole arbitrator appointed by the principal contractor and work contractor. The Court confirmed that the arbitration process is to be followed as per the terms agreed upon in the contract, thereby reinforcing the enforceability of arbitration agreements in commercial contracts.