In Brief
Haryana Tourism Limited engaged Kandhari Beverages Limited to supply soft drinks under a contract requiring Brand Promotion spending. Disputes arose over Brand Promotion expenses and sponsorship payments, leading to arbitration. The arbitrator awarded Rs. 9.5 lakhs to the tourism company and dismissed the respondent's counter-claim for Rs. 13.92 lakhs. The High Court set aside the award on merits. The Supreme Court reversed this, holding that under Section 37 of the Arbitration Act, courts cannot reexamine arbitral awards on merits—only on narrow public policy grounds. The award was restored.
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