M/S. Abs Marine Services vs Andaman And Nicobar Administration

The Supreme Court examined whether the principles of Rule of Law apply to the interpretation of contractual clauses involving the State and its instrumentalities. The Court held that non-negotiable principles of Rule of Law are not alien to such interpretation, rejecting the respondent's contention to the contrary. The case arose from a dispute over an arbitral award which was set aside by the High Court on grounds of jurisdiction and a prohibitory clause in the contract. The Supreme Court's decision underscores the importance of upholding Rule of Law even in contractual matters involving the State, affirming the validity of the arbitral award in question.