'Can' In Arbitration Clause Implies Choice, No Mandatory Arbitration Without Clear Agreement: Supreme Court

The Supreme Court on Friday held that an arbitration clause using the word “can” does not make arbitration mandatory, ruling that parties cannot be compelled to arbitrate unless there is a clear and binding agreement to that effect under Section 7 of the Arbitration and Conciliation Act, 1996.A Division Bench of Justice Sanjay Karol and Justice Nongmeikapam Kotiswar Singh held that the clause in question only indicates a possibility of arbitration and not a binding obligation. “The clause...

Supreme Court Dismisses Paharpur Plea Against Sinnar Thermal Power, Bars Arbitral Award Execution Post CIRP

The Supreme Court on Friday dismissed the special leave petition filed by Paharpur Cooling Towers Ltd. against Sinnar Thermal Power Ltd., effectively affirming the Delhi High Court's order dated February 11, which held that once a resolution plan is approved under the Insolvency and Bankruptcy Code (IBC), claims cannot be pursued through parallel arbitral award execution proceedings.A Bench of Justices Pamidighantam Sri Narasimha and Alok Aradhe, after hearing the parties, dismissed the...

Seat Alone Determines Jurisdiction, Not Where Arbitration Is Conducted Or Award Is Pronounced: Supreme Court

The Supreme Court of India has set aside an order of the Jammu and Kashmir and Ladakh High Court which had declined to hear a challenge to an arbitral award on the ground that it was delivered in New Delhi, holding that jurisdiction lies with courts at the seat of arbitration and cannot shift based on where proceedings are conducted or the award is rendered. A Bench of Justices Pamidighantam Sri Narasimha and Alok Aradhe said, “The mere fact that arbitral proceedings are conducted or the award...

Courts Can Refuse To Appoint Arbitrator In Rare Cases Where No Arbitration Agreement Exists: Supreme Court

The Supreme Court on Thursday held that courts may refuse to refer parties to arbitration at the Section 11 stage in the rarest of rare cases where, even on a prima facie view, no arbitration agreement exists, carving out a narrow exception to the principle of minimal judicial interference. Clarifying that judicial scrutiny at the stage of appointing arbitrators is otherwise limited to examining the prima facie existence of an arbitration agreement and that courts should follow the principle of...

Supreme Court Refuses To Interfere With NTPC Plea Against MSME Award Over Failure To Make 75% Pre-Deposit

The Supreme Court on Wednesday dismissed a special leave petition filed by NTPC Ltd, a government-owned power generation company, refusing to interfere with a Madhya Pradesh High Court order that declined to entertain its challenge to an MSME Facilitation Council award for non-compliance with the statutory pre-deposit requirement. A bench of Justices J.K. Maheshwari and Atul S. Chandurkar said, “After hearing learned counsel for the petitioner, we see no reason and ground to interfere with the...

No Fresh Arbitration Maintainable On Same Cause Without Liberty To Refile: Supreme Court

The Supreme Court on Wednesday held that a litigant cannot initiate fresh arbitration proceedings on the same cause of action after abandoning earlier proceedings, emphasising that such conduct amounts to abuse of process and is barred by principles underlying Order 23 Rule 1 of the Code of Civil Procedure. A bench of Justices Pamidighantam Sri Narasimha and Alok Aradhe was hearing an appeal against the Punjab and Haryana High Court order dated November 8, 2024, which had allowed a fresh...

LiveLawBiz Arbitration Cases Monthly Digest: March 2026

Supreme CourtSupreme Court Refuses To Interfere With Bombay High Court Ruling In Vedanta–Sunflag LAM Coke Arbitration DisputeCase Title : Vedanta Limited vs Sunflag Iron & Steel Company Limited Case Number : Petition(s) for Special Leave to Appeal (C) No(s). 7569/2026 CITATION : 2026 LLBiz SC 100 The Supreme Court recently declined to interfere with a judgment of the Bombay High Court dismissing Vedanta Ltd's writ petition challenging an arbitral order in its dispute with Sunflag Iron...

State Cannot Appoint Arbitrator Under Maharashtra Municipal Councils Act Without Arbitration Agreement: Supreme Court

The Supreme Court on Tuesday dismissed a special leave petition filed by Bharat Udyog Ltd, holding that the State Government had no authority under Section 143-A(3) of the Maharashtra Municipal Councils, Nagar Panchayats and Industrial Townships Act, 1965, which deals with issuance of policy directions regarding the levy and collection of octroi, to appoint an arbitrator between a Municipal Council and its agent.The court held that the government's exercise of such power could not be equated...

Supreme Court Calls Govt. Contractual Clause Foreclosing Redressal Before Courts "Shocking"; Restores Award For ABS Marine

The Supreme Court on Monday expressed shock at the stand taken by the Andaman and Nicobar Administration that a contractual clause made its decision final and beyond challenge, holding that such a term offended the rule of law.The court made the observationwhile setting aside a July 11, 2018 judgment of the Calcutta High Court and restoring an arbitral award of Rs 2.87 crore in favour of ABS Marine Services. The ruling came in a dispute where the Andaman and Nicobar Administration relied on...

After Disputed Arbitrator Steps Down, Supreme Court Restores MSA Global–EPIL Arbitration Dispute To Delhi HC

The Supreme Court has held that the primary ground for restraining MSA Global LLC (Oman) from continuing arbitration proceedings against Engineering Projects (India) Limited ceased to exist after arbitral tribunal member Andre Yeap resigned, whose alleged non-disclosure had formed the basis of the anti-arbitration injunction.Accordingly, setting aside the Delhi High Court's decision dated December 12, 2025, the Supreme Court restored the appeal to the Division Bench for fresh...

Supreme Court Refuses To Interfere With Arbitrator Appointment In Gini & Jony–Benetton Dispute

The Supreme Court on Monday dismissed a Special Leave Petition filed by Gini & Jony Ltd. challenging the Delhi High Court's order appointing an arbitrator in its dispute with Benetton India Pvt. Ltd. arising from a distribution agreement for sale of United Colors of Benetton apparel products, involving an unpaid amount of about Rs 91 lakh.After hearing the parties, Justices J.K. Maheshwari and Atul S. Chandurkar dismissed the special leave petition and said: “After hearing the learned...

Supreme Court Issues Notice On Jiostar Plea For Arbitrator In Dispute Over IPL Media Rights For Bangladesh

The Supreme Court on Friday issued notice in an arbitration petition filed by Jiostar India Pvt. Ltd. seeking appointment of an arbitrator in a dispute with UAE-based Green Bean Sports Marketing arising out of a media rights sub-licence agreement relating to the Indian Premier League (IPL) for the territory of Bangladesh.A bench comprising Chief Justice Surya Kant, Justice Joymalya Bagchi and Justice Vipul M. Pancholi, after hearing counsel, directed issuance of notice returnable on May 15,...