In Brief
Pile Engineering India challenged a High Court judgment that refused to recognize Clause 23 of its contract with Bihar Rajya Pul Nirman Nigam Ltd. as an arbitration clause. The clause required disputes to be referred to the Managing Director for final, binding decisions. The Supreme Court held that Clause 23 constituted a valid arbitration clause, following precedent in Mallikarjun v. Gulbarga University. The Court upheld the arbitral award of ₹12,09,000 and set aside the High Court's contrary judgment, allowing the appeal.
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