Wednesday, April 15, 2009

NEW CIRCULAR CANNOT OVERRIDE OLD ARBITRATION CLAUSE

The Supreme Court has set aside the Rajasthan High Court order and rejected a govt. stand on arbitration. The government stated that the arbitration could not be invoked as the government had issued a circular regarding certain tenders. According to the circular, arbitration could be instituted only if the claim was over 20 percent of the total cost of work.

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