Supreme Court Asks Delhi HC To Dispose Patanjali-Ashav Arbitration Dispute Over Ruchi Soya Deal

The Supreme Court recently asked the Delhi High Court to take up for disposal the pending arbitration dispute between Patanjali Ayurved Ltd and Ashav Advisory LLP over a share transaction linked to the acquisition of Ruchi Soya Industries.

A Bench of Justices Pamidighantam Sri Narasimha and Alok Aradhe requested the High Court to decide the pending petitions at the next date of hearing, scheduled for July 28.

“We had earlier recorded in our order dated 07.01.2026 that Section 34 objections were listed for hearing on 11.02.2026. It appears that the matter could be taken up for one reason or the another. Mr. C.A. Sundaram, learned senior counsel appearing for the petitioner(s) submits that petition under Section 36 of the Act is also pending consideration before the High Court. We request the High Court to take up Section 34/36 petitions for disposal on the next date of hearing which is scheduled for 28.07.2026,” the bench observed.

The dispute arises from an arbitral award in favour of Ashav Advisory LLP over alleged non-payment in a share transaction connected with the acquisition of shares in Ruchi Soya Industries during the company's corporate insolvency resolution process.

The matter reached the Supreme Court after Patanjali challenged a May 6 Delhi High Court order permitting Ashav Advisory LLP to withdraw about ₹28.47 crore deposited by Patanjali, subject to furnishing security.

Earlier, on January 7, the Supreme Court had declined to interfere with Delhi High Court directions requiring deposit of the awarded amount, ordering that the money be kept in a short-term fixed deposit receipt with a nationalised bank, subject to further orders of the High Court.

Following that direction, Patanjali deposited ₹28.47 crore with the Delhi High Court registry.

On May 6, Justice Harish Vaidyanathan Shankar allowed Ashav Advisory LLP's plea for release of the amount, holding that there was “absolutely no embargo or interdiction” in the Supreme Court's January 7 order against withdrawal of the funds.

With the Supreme Court now disposing of Patanjali's challenge, the parties will continue the pending proceedings before the Delhi High Court.