M/S. Harsha Constructions vs Union Of India & Ors

The Supreme Court addressed the issue of whether an arbitrator can arbitrate on disputes that are expressly excepted in a contract, specifically under Clause 63 of the contract between M/s Harsha Constructions and the Union of India. The Court held that matters deemed as 'Excepted matters' under the contract, which include specific clauses, are excluded from arbitration and must be resolved through the specified decision-making process. Consequently, the appeal was dismissed, affirming the High Court's ruling that the arbitrator lacked jurisdiction over the excepted issues.