In Brief
The State of Gujarat sought to recover alleged damages from a road construction contractor by withholding payments owed under other ongoing government contracts. The contractor challenged this via a writ petition in the High Court, which restrained the State from doing so without first obtaining a determination of the claim. The Supreme Court held that the Gujarat Public Works Contracts Disputes Arbitration Tribunal, not the High Court, has jurisdiction over such disputes. The Court also ruled that the Tribunal can grant interim relief under Section 17 of the Arbitration and Conciliation Act, 1996, as this power is consistent with the Gujarat Act. The Court allowed the appeals and set aside the High Court's judgment, directing the contractor to approach the Tribunal for relief.
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