In Brief
In this case involving a construction contract between a contractor and ONGC, the Supreme Court clarified the scope of arbitrability under the Arbitration and Conciliation Act. The court held that when a contract contains a finality clause granting a Superintending Engineer the exclusive authority to determine liquidated damages for delay, such matters are "excepted matters" and fall outside the arbitrator's jurisdiction. The contractor's attempt to challenge the Engineer's damages decision in arbitration was dismissed, affirming that the parties' agreed intent to exclude certain matters from arbitration must be respected. The only remedy available lies through ordinary legal proceedings, not arbitration.
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