In Brief
The State of Gujarat challenged a High Court order that restrained it from withholding payments owed to a contractor under other contracts to recover alleged damages. The key question was whether the Gujarat Public Works Contract Disputes Arbitration Tribunal has jurisdiction to grant interim relief. The Supreme Court held that the Tribunal, constituted under the Gujarat Act, can exercise interim powers under the Arbitration and Conciliation Act, 1996. The Court found no inconsistency between the two Acts and ruled that disputes about appropriation of amounts must be adjudicated by the Tribunal, not by the High Court. The State's appeals were allowed, and the High Court's order was set aside, though the contractor was given liberty to approach the Tribunal within two months.
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