M/S Gvv Constructions Private Limited v. the Union of India & Ors.
[2026] 9 S.C.R. 561 : 2026 INSC 976
M/s GVV Constructions Private Limited
v.
The Union of India & Ors.
(Civil Appeal No. 12525 of 2026)
08 September 2026
[Pamidighantam Sri Narasimha and Alok Aradhe,* JJ.]
Issue for Consideration
Whether the observation of the Division Bench that “the Arbitrator is
at liberty to decide the claim of the appellant strictly in accordance
with the terms of the contract agreed upon between the parties”,
travels beyond the scope of the jurisdiction of a court exercising
power of judicial review u/Art.226 of the Constitution of India and
impinges upon the jurisdiction of the Arbitral Tribunal u/s.16 of
the Arbitration and Conciliation Act, 1996.
Headnotes†
Arbitration and Conciliation Act, 1996 – s.16 – Constitution
of India – Art.226 – Appellant sought quashing of the order
of termination of contract, writ petition dismissed by Single
Judge – Division Bench granted liberty to the appellant to
raise all its claims before Arbitral Tribunal, which in turn
was granted the liberty to decide the claims of the appellant
strictly in accordance with the terms of the contract agreed
upon between the parties – Arbitral Tribunal framed 12
issues including the issue of the validity of the order of
termination and the question whether any claims are barred
by limitation or fall under “excepted matters” or are not
otherwise arbitrable – Whether the observation of the Division
Bench that “the Arbitrator is at liberty to decide the claim
of the appellant strictly in accordance with the terms of the
contract agreed upon between the parties”, travels beyond
the scope of the jurisdiction of a court exercising power
of judicial review u/Art.226 of the Constitution of India and
impinges upon the jurisdiction of the Arbitral Tribunal u/s.16
of the Arbitration and Conciliation Act, 1996:
Held: A conjoint reading of Clause 63 and relevant part of
Clause 64 of the Indian Railways Standard General Conditions of
* Author
562 [2026] 9 S.C.R.
Supreme Court Reports
Contract (GCC), makes it clear that Clause 63 only excludes the
excepted matters from the purview of the Arbitration Clause but
does not exclude the jurisdiction of the Court of Law to examine
the validity of the decision taken in respect of excepted matters –
Under the Act, the question whether a particular claim is covered
by, or falls outside, an “excepted matters” clause of a works
contract is a matter squarely within the competence of the Arbitral
Tribunal u/s.16, and not a question for a court exercising even the
wider, appointment-stage jurisdiction u/s.11, much less for a court
exercising the discretionary jurisdiction of judicial review u/Art.226
of the Constitution, whose very engagement with the merits of the
dispute, in the present case, was declined on the ground that it
involved complicated questions of fact – If a court exercising the
power of appointment u/s.11(6A) has no jurisdiction to enter upon,
still less to predetermine, the touchstone by reference to which
the Arbitral Tribunal is to adjudicate a claim said to fall within an
“excepted matters” clause, a writ appellate court, whose task was
confined to testing the correctness of the Single Judge’s disposal
of a writ petition impugning a termination notice, had, by parity of
reasoning and a fortiori, no such jurisdiction – The direction that
the Arbitrator “is at liberty to decide the claim of the appellant
strictly in accordance with the terms of the contract agreed upon
between the parties”, whatever the intention behind it, has the
inevitable effect of circumscribing the width of the Arbitrator’s
enquiry, including his authority u/s.16 to rule upon the scope
of his own jurisdiction over the dispute relating to termination –
Whether the dispute regarding termination is, in whole or in
part, an “excepted matter” outside the Arbitrator’s jurisdiction,
and, if so, what remedy survives to the appellant in that behalf,
are questions that s.16 of the Act commits to the Arbitrator in
the first instance – It was not open to the Division Bench, in the
exercise of its writ appellate jurisdiction, to prescribe in advance
the manner of, or to place constraints upon, that adjudication –
Division Bench ought not to have made such an observation
as the issue of arbitrability of termination of agreement was not
an issue before it – The direction issued by the Division Bench
to the Arbitrator to decide all claims of the appellant strictly in
accordance with the terms of the contract agreed upon between
the parties shall not be construed to impinge upon the jurisdiction
of the Arbitral Tribunal, to adjudicate the dispute with regard to
termination of contract. [Paras 12, 18-20, 22]
[2026] 9 S.C.R. 563
M/s GVV Constructions Private Limited v. The Union of India & Ors.
Case Law Cited
ABS Marine Services v. Andaman and Nicobar Administration,
2026 SCC OnLine SC 460 – held not applicable.
General Manager, Northern Railway and Another v. Sarvesh
Chopra [2002] 2 SCR 156 : (2002) 4 SCC 45; Harsha
Constructions v. Union of India and Others [2014] 7 SCR 668 :
(2014) 9 SCC 246; Chloro Controls India Pvt. Ltd. v. Severn
Trent Water Purification Inc. & Ors. [2012] 13 SCR 402 : (2013)
1 SCC 641; Konkan Railway Corpn. Ltd. & Ors. v. M/s Mehul
Construction Co. [2000] Supp. 2 SCR 563 : (2000) 7 SCC 201;
Konkan Railway Corpn. Ltd. & Anr. v. Rani Construction (P) Ltd.
[2002] 1 SCR 728 : (2002) 2 SCC 388; SBP & Co. v. M/s Patel
Engineering. Ltd. and Another [2005] Supp. 4 SCR 688 : (2005)
8 SCC 618; National Insurance Co. Ltd. v. Boghara Polyfab (P)
Ltd. [2008] 13 SCR 638 : (2009) 1 SCC 267; Duro Felguera,
S.A. v. Gangavaram Port Ltd. [2017] 10 SCR 285 : (2017) 9 SCC
729; Mayavati Trading (P) Ltd. v. Pradyuat Deb Burman [2019]
12 SCR 123 : (2019) 8 SCC 714; Vidya Drolia and Others v.
Durga Trading Corporation [2020] 11 SCR 1001 : (2021) 2
SCC 1; Uttarakhand Purv Sainik Kalyan Nigam Ltd. v. Northern
Coal Field Ltd. [2019] 14 SCR 999 : (2020) 2 SCC 455; In Re:
Interplay Between Arbitration Agreements and the Indian Stamp
Act, 1899 [2023] 15 SCR 1081 : (2024) 6 SCC 1; N.N. Global
Mercantile (P) Ltd. v. Indo Unique Flame Ltd. [2023] 9 SCR
285 : (2023) 7 SCC 1; SBI General Insurance Company Ltd. v.
Krish Spinning [2024] 7 SCR 840 : (2024) 12 SCC 1; Office for
Alternative Architecture v. Ircon Infrastructure and Services Ltd.
2025 SCC OnLine SC 1098 – referred to.
List of Acts
Arbitration and Conciliation Act, 1996; Constitution of India;
Arbitration and Conciliation (Amendment) Act, 2015; Arbitration
Act, 1940.
List of Keywords
Section 16 of the Arbitration and Conciliation Act, 1996; Scope
of judicial review under Article 226 of the Constitution of India;
“excepted matters”; Works contract; Terms of the contract
agreed upon between the parties; Arbitrability of termination of
agreement; Validity of termination of contract; Indian Railways
564 [2026] 9 S.C.R.
Supreme Court Reports
Standard General Conditions of Contract (GCC); Judicial scrutiny
prior the stage of reference of dispute; Judicial scrutiny at the
stage of reference of dispute; Section 11 of the Arbitration and
Conciliation Act, 1996.
Case Arising From
CIVIL APPELLATE JURISDICTION: Civil Appeal No. 12525
of 2026
From the Judgment and Order dated 16.12.2025 of the High Court
for the State of Telangana at Hyderabad in WA No. 743 of 2022
Appearances for Parties
Advs. for the Appellant(s):
Gaurav Agarwal, Sr.Adv., P. Mohith Rao, J. Akshitha, Eugene S
Philomene, Dipankar Mukherjee, Nakul Patwardhan, Ms. Sejal
Jain, Jagatjeet Singh, Ms. Kaarunya Lakshmi, Ms. Shrija Rawat,
Utkarsh Krishna.
Advs. for the Respondent(s):
Vikramjit Banerjee, A.S.G., Rishav Rai, Abhishek Singh-ii, Bharat
Sood, Gaurav Arya, Padmesh Mishra, Ms. Dumni Soren, Amrish
Kumar, Dr. Arun Kumar Yadav.
Judgment / Order of the Supreme Court
Judgment
Alok Aradhe, J.
1. Leave granted.
2. This appeal takes exception to the judgment dated 16.12.2025
passed by the Division Bench of the High Court for the State of
Telangana at Hyderabad.
FACTS
3. The facts leading to the filing of the present appeal may be stated
briefly. The appellant is a private limited company and is engaged in
construction and infrastructure works. On 21.02.2017, South Central
Railway namely, respondent no. 2 invited tenders for the work of
“Doubling of track between Guntur-Guntakal Section- Earthwork
[2026] 9 S.C.R. 565
M/s GVV Constructions Private Limited v. The Union of India & Ors.
in formation including blanketing to GE: 0014 specifications,
construction of bridges, RUBs for LCs and other miscellaneous
works….” (‘Work’). In response to the aforesaid tender, the appellant
submitted its bid. The appellant’s bid was accepted, and on
30.11.2017, a formal Contract Agreement was executed stipulating
the due date of completion of the Work as 23.10.2018.
4. On 10.06.2022, the said contract was terminated under Clause
62 of Indian Railways Standard General Conditions of Contract
(‘GCC’) and the performance guarantee and security furnished by
the appellant were also forfeited. Further, the appellant was held
to be disentitled to any compensation for any loss.
5. The appellant sought quashing of the aforesaid order of termination
in a writ petition inter alia on the ground that the same is in
contravention of the procedure laid down under GCC and sought
a consequential direction to respondents to follow Clause 17 of the
GCC. The learned Single Judge by an order dated 18.10.2022,
dismissed the writ petition inter alia on the ground that serious and
complicated questions of fact were not amenable to adjudication
under Article 226 of the Constitution of India. In paragraph 35 of the
order, the learned Single Judge further held that since the appellant
had already invoked the arbitration clause by filing an arbitration
petition it could take all its defences before the Arbitral Tribunal.
However, it was also recorded as a finding that there existed no
irregularity in the order of termination of contract.
6. Being aggrieved, the appellant preferred an appeal. The Division
Bench of the High Court vide its judgment dated 16.12.2025, held
that the finding recorded by the learned Single Judge that the contract
of the appellant had been validly terminated, was without assigning
any reason. It was further held that if the validity of the order of
termination of contract is upheld, there would be no scope left for
the Arbitral Tribunal or any other forum to decide the dispute in
favour of the appellant. The Division Bench accordingly set aside the
finding contained in paragraph 35 of the order of the learned Single
Judge which stated that there exists no irregularity in termination of
the contract of the appellant. The appellant was granted the liberty
to raise all its claims before the Arbitral Tribunal, which in turn was
granted the liberty to decide the claims of the appellant strictly in
accordance with the terms of the contract agreed upon between the
parties. The Division Bench clarified that the Arbitral Tribunal shall
566 [2026] 9 S.C.R.
Supreme Court Reports
take a decision in accordance with law without being influenced by
the observations made either by it or by the learned Single Judge.
7. In pursuance of the order passed by the Division Bench of the
High Court, a former judge of this Court was appointed as the Sole
Arbitrator and arbitration proceedings commenced on 20.01.2026.
The Arbitral Tribunal framed twelve issues including the issue of
the validity of the order of termination dated 10.06.2022 and the
question whether any claims are barred by limitation or fall under
“excepted matters” or are not otherwise arbitrable.
SUBMISSIONS
8. Mr. Gaurav Agarwal, learned senior counsel for the appellant
submitted that the reasons for delay in completion of the Work
were not attributable to the appellant. It was contended that the
contract was illegally terminated. It was pointed out that respondents
themselves admitted in paragraph 1 of the counter affidavit filed in
the writ petition, that the same is not maintainable, as appellant has
an effective and alternative remedy of arbitration. Therefore, the
respondents cannot now turn around and dispute that the issue of
termination of contract cannot be decided by the Arbitral Tribunal.
It was urged that the only grievance of the appellant in the present
appeal pertains to the direction issued by the Division Bench to the
Arbitral Tribunal to decide all claims of the appellant in accordance
with the terms of the contract agreed upon by the parties. It was
contended that the issue of the illegal termination of the contract is
directly and intrinsically linked with all other issues pending before
the Arbitral Tribunal and, therefore, it should be permitted to decide
the issue of termination of contract as well. It was submitted that
the impugned direction is contrary to the decision of this Court in
ABS Marine Services v. Andaman and Nicobar Administration1.
9. Mr. Vikramjit Banerjee, learned Additional Solicitor General, submitted
that appellant by seeking to submit the issue of validity of termination
of contract to arbitration is acting in direct violation of Clause 63 of
GCC which was signed and accepted by both the parties. It was
further submitted that exclusion of validity of termination of the
contract from the scope of arbitration does not prevent the appellant
1 2026 SCC OnLine SC 460.
[2026] 9 S.C.R. 567
M/s GVV Constructions Private Limited v. The Union of India & Ors.
from approaching the civil court which is the designated forum for
“excepted matters”. It was contended that the reliance placed on the
decision of this Court in ABS Marine Services (supra), is misplaced
as the clauses in GCC are different from the Clause struck down
by this Court in the said decision. It was urged that the Arbitral
Tribunal has no jurisdiction over “excepted matters” under the GCC
and the impugned judgment does not call for any interference in
this appeal. In support of the aforesaid submissions, reliance has
been placed on the decisions of this Court in General Manager,
Northern Railway and Another2 v. Sarvesh Chopra and Harsha
Constructions v. Union of India and Others 3.
ANALYSIS
10. We have carefully considered the rival submissions advanced by
the learned counsel for the respective parties and have perused
the record.
ISSUE
11. The solitary issue which arises for consideration in this appeal is
whether the observation of the Division Bench that “the Arbitrator is
at liberty to decide the claim of the appellant strictly in accordance
with the terms of the contract agreed upon between the parties”,
travels beyond the scope of the jurisdiction of a court exercising
power of judicial review under Article 226 of the Constitution of India
and impinges upon the jurisdiction of the Arbitral Tribunal under
Section 16 of the Arbitration and Conciliation Act, 1996 (‘Act’).
RELEVANT CLAUSES OF THE AGREEMENT
12. Before proceeding to deal with the issue, it is apposite to take note
of Clause 63 and relevant parts of Clause 64 of the GCC :-
“63. Matters Finally Determined By The Railway: All
disputes and differences of any kind whatsoever arising
out of or in connection with the contract, whether
during the progress of the work or after its completion
and whether before or after the determination of the
2 (2002) 4 SCC 45.
3 (2014) 9 SCC 246.
568 [2026] 9 S.C.R.
Supreme Court Reports
contract, shall be referred by the contractor to the GM
and the GM shall, within 120 days after receipt of the
contractor’s representation, make and notify decisions
on all matters referred to by the contractor in writing
provided that matters for which provision has been made
in Clauses 8, 18, 22(5), 39, 43(2), 45(a), 55, 55-A(5),
57, 57A, 61(1), 61(2) and 62(1) to (xiii)(B) of Standard
General Conditions of Contract or in any Clause
of the Special Conditions of the Contract shall be
deemed as ‘excepted matters’ (matters not arbitrable)
and decisions of the Railway authority, thereon shall
be final and binding on the contractor; provided
further that ‘excepted matters’ shall stand specifically
excluded from the purview of the Arbitration Clause.
64.(1) Demand for Arbitration
64.(1)(i) In the event of any dispute or difference between
the parties hereto as to the construction or operation of
this contract, or the respective rights and liability of the
parties on any matter in question, dispute or difference
on any account or as to the withholding by the Railway
of any certificate to which the contractor may claim to
be entitled to, or if the Railway fails to make a decision
within 120 days, then and in any such case, but except
in any of the “excepted matters” referred to in Clause
63 of these conditions, the contractor, after 120 days
but within 180 days of his presenting his final claim on
disputed matters shall demand in writing that the dispute
or difference be referred to arbitration.
64.(1)(ii) The demand for arbitration shall specify the
matters which are in question, or subject of the dispute
or difference as also the amount of claim item-wise. Only
such dispute(s) or difference(s) in respect of which the
demand has been made, together with counter claims
or set off, given by the Railway, shall be referred to
arbitration and other matters shall not be including in
the reference.”
Thus, a conjoint reading of Clause 63 and relevant part of Clause 64
of the GCC, makes it clear that Clause 63 only excludes the excepted
[2026] 9 S.C.R. 569
M/s GVV Constructions Private Limited v. The Union of India & Ors.
matters from the purview of the Arbitration Clause but does not
exclude the jurisdiction of the Court of Law to examine the validity
of the decision taken in respect of excepted matters.
THE ARBITRATION AND CONCILIATION ACT, 1996
13. The Act is modelled on the UNCITRAL Model Law and is intended
to bring the domestic as well as International Commercial Arbitration
in consonance with the UNCITRAL Model, the New York Convention
and the Geneva Convention, as has been held by a three-Judge
Bench of this Court in Chloro Controls India Pvt. Ltd. v. Severn
Trent Water Purification Inc. & Ors.4 Section 5 of the Act prescribes
the extent of judicial intervention and begins with a non-obstante
clause and mandates that “no judicial authority shall intervene except
where so provided in this part”. Section 16(1) of the Act empowers
the Arbitral Tribunal to rule on its jurisdiction “including ruling on
any objections with respect to existence or validity of the arbitration
agreement”. Section 16 incorporates the principle of kompetenz-
kompetenz, which lies at the foundation of the Act and makes a
decisive departure from the preceding statutory regime contained
in the Arbitration Act, 1940.
PERMISSIBLE EXTENT OF JUDICIAL SCRUTINY PRIOR OR AT
THE STAGE OF REFERENCE OF DISPUTE
14. The extent of judicial scrutiny permissible even at the stage anterior
to appointment of an Arbitrator or at the stage of appointment of
an Arbitrator under Section 11 of the Act has travelled through four
distinct phases each marking a progressively narrower conception of
the Court’s role, culminating in the position that holds the field today.
In Konkan Railway Corpn. Ltd. & Ors. v. Mehul Construction
Co.5, reaffirmed by a Constitution Bench in Konkan Railway Corpn.
Ltd. v. Rani Construction (P) Ltd. 6, this Court characterised the
power of appointment under Section 11(6) as purely administrative,
leaving every contested question, including the existence of the
agreement and arbitrability, to the Arbitral Tribunal under Section 16.
The aforesaid view was overruled by a seven-Judge Bench in SBP
4 (2013) 1 SCC 641.
5 (2000) 7 SCC 201.
6 (2002) 2 SCC 388.
570 [2026] 9 S.C.R.
Supreme Court Reports
& Co. v. Patel Engineering. Ltd. and Another7, wherein it was held
the power to be judicial, requiring the court, at the referral stage,
to decide, amongst other things, the existence of a valid arbitration
agreement. This view was refined in National Insurance Co. Ltd. v.
Boghara Polyfab (P) Ltd.8, which classified the issues arising on a
Section 11 application into three categories, of which “Category III”
issues, namely whether the claim made falls within the arbitration
clause, illustratively including “a matter which is reserved for the
final decision of a departmental authority and excepted or excluded
from arbitration”, were held to be decided by the Arbitral Tribunal
alone, and not by the referral court.
15. The Arbitration and Conciliation (Amendment) Act, 2015, on the
basis of the recommendations contained in the 246 th Report of the
Law Commission of India, inserted Section 11(6A) 9 in the Act, by
which the scope of examination by the Court, “notwithstanding any
judgment, decree or order of any Court”, is confined, at the stage of
appointment, to the existence of the arbitration agreement. In Duro
Felguera, S.A. v. Gangavaram Port Ltd.10, this Court applied the
amended provision literally, holding that the referral court is only
required to examine “if an arbitration agreement exists, nothing
more, nothing less”. A three-Judge Bench of this Court in Mayavati
Trading (P) Ltd. v. Pradyuat Deb Burman11, held that Section 11(6A)
legislatively overruled the wider scrutiny contemplated by SBP &
Co. and Boghara Polyfab (supra).
16. Another three-Judge Bench of this Court in Vidya Drolia and
Others v. Durga Trading Corporation12, harmonised the standard
of review under Sections 8 and 11 of the Act and held that a court
should decline reference only where it is manifestly and ex facie
certain that the arbitration agreement is non-existent, invalid, or that
the dispute is non-arbitrable; short of that, the governing maxim is
“when in doubt, do refer.” This “eye of the needle” standard has
since been applied consistently, in subsequent decisions by this
7 (2005) 8 SCC 618.
8 (2009) 1 SCC 267.
9 Sub-section (6A) omitted by Act 33 of 2019, sec 3(v) [Date of enforcement yet to be notified.]
10 (2017) 9 SCC 729.
11 (2019) 8 SCC 714.
12 (2021) 2 SCC 1.
[2026] 9 S.C.R. 571
M/s GVV Constructions Private Limited v. The Union of India & Ors.
Court in Uttarakhand Purv Sainik Kalyan Nigam Ltd. v. Northern
Coal Field Ltd.13 (holding that limitation, being a mixed question of
fact and law bound up with the Tribunal’s Section 16 jurisdiction, is
ordinarily for the Arbitral Tribunal) and in In Re: Interplay Between
Arbitration Agreements and the Indian Stamp Act, 189914 (holding
by a seven-Judge Bench, that even insufficiency of stamping is a
curable, evidentiary question for the Tribunal, and thus overruling
N.N. Global Mercantile (P) Ltd. v. Indo Unique Flame Ltd.) 15.
17. A three-Judge Bench of this Court in SBI General Insurance
Company Ltd. v. Krish Spinning16, in paragraph 114 held as follows,
“The use of the term “examination” under Section 11(6-A)
as distinguished from the use of the term “rule” under
Section 16 implies that the scope of enquiry under
Section 11(6-A) is limited to a prima facie scrutiny of
the existence of the arbitration agreement, and does
not include a contested or laborious enquiry, which is
left for the Arbitral Tribunal to “rule” under Section 16.
The prima facie view on existence of the arbitration
agreement taken by the Referral Court does not bind
either the Arbitral Tribunal or the Court enforcing the
arbitral award.”
This view was reiterated by a two-Judge Bench of this Court in
Office for Alternative Architecture v. Ircon Infrastructure and
Services Ltd.17
18. What emerges from the foregoing survey is that, under the Act, the
question whether a particular claim is covered by, or falls outside, an
“excepted matters” clause of a works contract is a matter squarely
within the competence of the Arbitral Tribunal under Section 16, and
not a question for a court exercising even the wider, appointment-
stage jurisdiction under Section 11, much less for a court exercising
the discretionary jurisdiction of judicial review under Article 226 of
the Constitution, whose very engagement with the merits of the
13 (2020) 2 SCC 455.
14 (2024) 6 SCC 1.
15 (2023) 7 SCC 1 (overruled).
16 (2024) 12 SCC 1.
17 2025 SCC OnLine SC 1098.
572 [2026] 9 S.C.R.
Supreme Court Reports
dispute, in the present case, was declined on the ground that it
involved complicated questions of fact.
19. If a court exercising the power of appointment under Section 11(6A)
has no jurisdiction to enter upon, still less to pre-determine, the
touchstone by reference to which the Arbitral Tribunal is to adjudicate
a claim said to fall within an “excepted matters” clause, a writ
appellate court, whose task was confined to testing the correctness
of the learned Single Judge’s disposal of a writ petition impugning
a termination notice, had, by parity of reasoning and a fortiori, no
such jurisdiction. The direction that the Arbitrator “is at liberty to
decide the claim of the appellant strictly in accordance with the
terms of the contract agreed upon between the parties”, whatever
the intention behind it, has the inevitable effect of circumscribing
the width of the Arbitrator’s enquiry, including his authority under
Section 16 to rule upon the scope of his own jurisdiction over the
dispute relating to termination.
20. Whether the dispute regarding termination is, in whole or in part, an
“excepted matter” outside the Arbitrator’s jurisdiction, and, if so, what
remedy survives to the appellant in that behalf, are questions that
Section 16 of the Act commits to the Arbitrator in the first instance.
It was not open to the Division Bench, in the exercise of its writ
appellate jurisdiction, to prescribe in advance the manner of, or to
place constraints upon, that adjudication. For yet another reason,
the Division Bench ought not to have made such an observation
as the issue of arbitrability of termination of agreement was not an
issue before it. Accordingly, the issue is answered.
21. Insofar as reliance placed by the appellant on ABS Marine Services
(supra) is concerned, suffice it to say that same has no application to
the fact situation of the case, as Clauses 3.20 of the said case and
63 of GCC in the instant case are differently worded. Clause 3.20
in ABS Marine Services (supra) ousts the jurisdiction of any court
of law and prohibits arbitration proceedings as well, whereas in the
instant case, Clause 63 does not bar the jurisdiction of the court but
only puts the excepted matters beyond the scope of arbitration. As
far as the reliance placed by the respondents on General Manager
Northern Railway (supra) is concerned, same is of no assistance
to them in the facts of the present case for the reason, that in the
said case, this Court dealt with Section 20 of the Arbitration Act,
[2026] 9 S.C.R. 573
M/s GVV Constructions Private Limited v. The Union of India & Ors.
1940 and the provisions of the Act make a decisive departure from
the previous statutory regime.
CONCLUSION
22. For the foregoing reasons, it is clarified that the direction issued
by the Division Bench to the Arbitrator to decide all claims of the
appellant strictly in accordance with the terms of the contract agreed
upon between the parties shall not be construed to impinge upon
the jurisdiction of the Arbitral Tribunal, to adjudicate the dispute with
regard to termination of contract. It is clarified that this Court has
not expressed any opinion on the merits of the case.
23. In the result, the appeal is disposed of. There shall be no order as
to costs.
24. Pending applications, if any, shall stand disposed of.
Result of the case: Appeal disposed of.
†Headnotes prepared by: Divya Pandey