WALTER BAU AG, LEGAL SUCCESSOR, OF THE ORIGIANAL CONTRACTOR vs MUNICIPAL CORP. OF GREATER MUMBAI

The Supreme Court addressed the arbitration clause in a works contract executed between Walter Bau AG and the Municipal Corporation of Greater Mumbai, emphasizing the applicability of the Indian Arbitration and Conciliation Act, 1996. The Court held that disputes arising from the contract must be resolved through arbitration, as stipulated in the modified sub-clause 67.3 of the agreement. The judgment reinforces the binding nature of arbitration agreements and the authority of the arbitral tribunal to review decisions made by the Engineer and the Board.