Supreme Court Replaces Justice Arun Mishra With Justice Sanjay Kishan Kaul As Arbitrator In Adani-RVUNL Dispute

The Supreme Court has recently replaced Justice Arun Mishra with former judge Justice Sanjay Kishan Kaul as sole arbitrator in a dispute between Adani-linked Parsa Kente Collieries Ltd. and Rajasthan Rajya Vidyut Utpadan Nigam Ltd.

To that extent, the court has modified the Rajasthan High Court's July 3, 2026 order appointing Justice Mishra as the sole arbitrator.

The dispute arises from their agreement for mining and supply of coal from the Parsa East and Kanta Basan blocks.

A bench of Chief Justice of India Surya Kant, Justices Joymalya Bagchi and V. Mohana replaced the arbitrator after recording that the parties had mutually agreed to appoint Justice Sanjay Kishan Kaul, former Supreme Court Judge as the sole arbitrator.

Modifying the High Court's order, the Court said, "Though we do not find the ground urged for change of arbitrator legally sustainable, however, during the course of hearing, the parties have mutually agreed for appointment of Justice Sanjay Kishan Kaul, former Judge of this Court, to be the sole arbitrator. The impugned judgment of the High Court stands modified in terms of the aforesaid."

The dispute involves PKCL, a joint venture in which Adani Enterprises Ltd holds 74% and RVUNL 26%, formed for development and operation of coal blocks and supply of coal to RVUNL's thermal power stations. RVUNL and PKCL had entered into a Coal Mining and Delivery Agreement (CMDA) on July 16, 2008.

The broader dispute has involved claims arising from the coal supply arrangement, including price adjustment and other contractual issues.

On July 3, the Rajasthan High Court, noting that an arbitrator had already been appointed in a similar dispute, appointed Justice Arun Mishra as sole arbitrator in the present arbitration application and directed him to decide all issues.

RVUNL challenged that appointment before the Supreme Court. During the hearing on August 3, 2026, RVUNL sought a change of arbitrator but the Supreme Court found the ground legally unsustainable. The parties thereafter mutually agreed on Justice Kaul.

The Supreme Court accordingly modified the High Court's order and appointed Justice Sanjay Kishan Kaul as sole arbitrator.

For Petitioner: Shyam Divan, Sr. Advocate, Advocates Kartik Seth, Shilpa Saini, Ratakshi Sarvaria, Gauri Soni, K.M. Abish, Ragib, Abhijeet Kumar, Chambers Of Kartik Seth, AOR

For Respondent: Gaurab Banerjee, Sr. Advocate, Advocates Abhisaar Bairagi, Milind Sharma, Ausaf Ayyub, Khaitan & Co., AOR