In Brief
Indian Oil Corporation leased land from Shree Ganesh Petroleum for 29 years at Rs.1,750 per month to operate a petrol pump. When the dealership was terminated for violations, the Respondent sought increased rent under the dealership arbitration clause. The Supreme Court held that disputes about lease terms must be resolved under the separate lease agreement's arbitration clause (requiring the Managing Director as arbitrator), not the dealership agreement's clause (appointing the Director of Marketing). An arbitrator cannot unilaterally modify contractual terms like rent and lease period that parties agreed to with knowledge. The Court set aside the arbitration award increasing rent to Rs.10,000 and reducing the lease period, finding such modification violates public policy and exceeds the arbitrator's jurisdiction.
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