SUTLEJ CONSTRUCTION LIMITED vs UNION TERRITORY OF CHANDIGARH

The Supreme Court held that the arbitration award dated 18.12.2013, which partly allowed the appellant's claims and rejected the respondent's counterclaims, was valid and reasoned. The Court found that the Punjab & Haryana High Court erred in setting aside the award, as the termination of the contract by the respondent was not justified under Section 34 of the Arbitration & Conciliation Act, 1996. The Court reinstated the arbitrator's decision, emphasizing the importance of adhering to the arbitration process as stipulated in the contract.