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Continental Construction Co Ltd vs The State of MP., AIR 1988 SC 1166
The Supreme Court of India held that if no specific question of law is referred, the decision of the Arbitraror on that question is not final. The arbitrator is not a conciliator and cannot ignore the law or misapply it in order to do what he thinks is just and reasonable. The arbitrator is a tribunal selected by the parties to decide their disputes according to law and so is bound to follow and apply it.