Pre-deposit in cheque to bank guarantee, key court orders of last week

The court set aside the high court ruling and clarified that the state law and the central law on arbitration were not in conflict and the tribunal can pass interim orders

The Supreme Court ruled last week that an arbitration tribunal can allow an employer to withhold the security deposit of a contractor in one project if his work in another work contract is under scrutiny. The judgment came in the case, State of Gujarat vs Amber Builders, in which the power of the Gujarat Public Works Contract Disputes Arbitration Tribunal was challenged by a contracting firm. This state law makes it compulsory to arbitrate disputes over works contracts. The firm, in this case, had built a road but it was washed away in rain. The government appointed a new contractor