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As per case facts, a government corporation hired a contractor for a project under a contract that forbade subcontracting without written permission. The contractor engaged a second company anyway, and
...later, through a private settlement, assigned its payment claims against the corporation to this second company. When the second company sought arbitration to recover dues, the High Court appointed an arbitrator despite the corporation’s objections. The question arose whether a valid arbitration agreement exists between a principal employer and a sub-vendor in the absence of a direct contract or written consent for assignment. Finally, the Supreme Court set aside the appointment, ruling that no arbitration agreement existed between the parties. The Court found that the private assignment agreement could not bind the corporation without its consent, and therefore, the sub-vendor had no legal standing to invoke the original arbitration clause
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