ELECTRICAL MFG.CO.LTD. vs POWER GRID CORPN.OF INDIA LTD.

The Supreme Court upheld the arbitration clause in the contract between Electrical Mfg. Co. Ltd. and Power Grid Corporation of India Ltd., emphasizing that disputes must first be referred to the Engineer as per Clause 26 of the contract. The Court clarified that the decision of the Engineer is binding unless a claim for arbitration is made within thirty days of receiving the decision. The appeal was allowed, reversing the High Court's order that had set aside the Single Judge's decision, thereby reinforcing the validity of the arbitration process outlined in the contract.