Punatsangchhu I Hydroelectric Project ... vs Larsen And Toubro Limited

The Supreme Court addressed the arbitration clause in a contract between the Punatsangchhu I Hydroelectric Project Authority and Larsen & Toubro Ltd. The court emphasized the importance of adhering to the agreed jurisdiction and applicable law as stipulated in the contract. It ruled that disputes arising from the contract must be resolved through arbitration in accordance with Bhutanese law, reinforcing the sanctity of contractual agreements in international projects.