PUNATSANGCHHU I HYDROELECTRIC PROJECT AUTHORITY vs LARSEN AND TOUBRO LIMITED

The Supreme Court addressed the arbitration agreement between the Punatsangchhu – 1 Hydroelectric Project Authority and Larsen & Toubro Ltd., focusing on the applicability of the Indian Arbitration and Conciliation Act, 1996 in the absence of a local arbitration framework in Bhutan. The court emphasized the importance of adhering to the agreed terms of the contract regarding dispute resolution and the appointment of arbitrators. Ultimately, the court upheld the arbitration clause, affirming the jurisdiction and procedural guidelines as stipulated in the contract.