M/S.SHARMA & ASSOCIATES CONTRACTORS (P)LTD. vs PROGRESSIVE CONSTRUCTIONS LTD.

The Supreme Court addressed the arbitration dispute between M/s. Sharma & Associates Contractors (P) Ltd. and Progressive Constructions Ltd. regarding payments owed under a sub-contract. The Court held that the arbitration award dated February 18, 1999, which allowed certain claims, was improperly set aside by the Division Bench, emphasizing that the appellant was entitled to benefit from revised rates received by the respondent from the main contractor, HSCL. The Court reinstated the arbitrator's award concerning Claim No. 1, affirming the principle that benefits from upward rate revisions in back-to-back contracts should be passed down to sub-contractors.