Supreme Court Quarterly Digest 2026 - Arbitration and Conciliation Act

Arbitration Law - Supreme Court Quarterly Digest Jan - Mar, 2026 Arbitration (Proceedings Before the Courts) Rules, 2001 (Karnataka) – Rule 9(4) – Harmonious Construction with Section 9(2) – Held that while Rule 9(4) uses the term "initiated" and Section 9(2) uses "commenced," the terms must be read harmoniously - "Initiated" in Rule 9(4) must be understood as "commenced" within the meaning of Section 21 to prevent the strict timelines of the parent Act from being rendered otiose. [Relied on Sundaram Finance Ltd. v. NEPC India Ltd. (1999) 2 SCC 479; Milkfood Ltd. v. GMC Ice Cream (P) Ltd. (2004) 7 SCC 288; Geo Miller and Company Private Limited v. Chairman, Rajasthan Vidyut Utpadan Nigam Limited (2020) 14 SCC 643; Arif Azim Company Limited v. Aptech Limited (2024) 5 SCC 313; Para 29] Regenta Hotels v. Hotel Grand Centre Point, 2026 LiveLaw (SC) 21 : 2026 INSC 32 Arbitration Act, 1940 – Section 2(a) and Section 39 – Absence of Arbitration Agreement – Jurisdiction of State Government – The Supreme Court upheld the High Court's decision setting aside an arbitral award, holding that there was neither a valid arbitration agreement nor informed consent by the Municipal Council to resolve disputes through arbitration - Noted that Clause 22 of the contract, which provided for dispute referral to the Collector with subsequent appeals to the Divisional Commissioner and the State Government, constituted a departmental dispute-resolution mechanism and not an "arbitration agreement". Bharat Udyog Ltd. v. Ambernath Municipal Council, 2026 LiveLaw (SC) 291 : 2026 INSC 288 Arbitration and Conciliation (Amendment) Act, 2015 — Section 11(6A) — Paradigm Shift — The 2015 Amendment introduced Section 11(6A), which limited the Court's inquiry solely to the "existence" of an arbitration agreement, effectively overruling the Patel Engineering dictum for post-amendment cases – Noted for proceedings commenced prior to 23.10.2015, the broader judicial scrutiny and finality of the Section 11 order under the old regime continue to apply – Appeal allowed. [Relied on SBP & Co. v. Patel Engineering Ltd. & Anr. (2005) 8 SCC 618; Paras 22-32] Eminent Colonizers v. Rajasthan Housing Board, 2026 LiveLaw (SC) 109 : 2026 INSC 116 Arbitration and Conciliation Act, 1996; Part III — Sections 61, 73, and 74 — Challenge to Conciliation Award and Partition Deed — Order VII Rule 11 of CPC — Rejection of Plaint — The Supreme Court set aside the rejection of a suit challenging a partition deed (KBPP) and a subsequent Conciliation Award - held that the Jegatheesan group's challenge based on coercion, undue influence, and misrepresentation regarding the KBPP, and the allegation of fraud/fabrication regarding the Conciliation Award, disclosed a real cause of action that could not be summarily dismissed – Noted that while an execution proceeding under Section 36 is pending, an Execution Court cannot examine the validity of a partition deed or family arrangement; such challenges must be resolved through a properly instituted civil suit. J. Muthurajan & Anr. v. S. Vaikundarajan, 2026 LiveLaw (SC) 135 : 2026 INSC 139 Arbitration and Conciliation Act, 1996; Section 11(6-A) — Appointment of Arbitrators — Scope of Judicial Review — The Supreme Court or High Court, while considering a Section 11 application, must strictly confine its examination to the existence of an arbitration agreement - The use of the word "examination" indicates a limit to the court's jurisdiction, intended for a prima facie determination rather than a "laborious or contested inquiry" - Noted that Section 11(6-A) continues to remain in full force as its omission (by the 2019 Amendment) has not yet been notified. [Paras 14–17] Motilal Oswal Financial Services v. Santosh Cordeiro, 2026 LiveLaw (SC) 32 : 2026 INSC 5 : (2026) 2 SCC 801 Arbitration and Conciliation Act, 1996; Section 12(5) and Seventh Schedule – Ineligibility of Arbitrator – Unilateral Appointment – The principle of equal treatment of parties under Section 18 applies not only to arbitral proceedings but also to the procedure for appointment of arbitrators - Equal treatment entails that parties must have an equal say in the constitution of the arbitral tribunal - Any person whose relationship with the parties, counsel, or the dispute falls within the Seventh Schedule is ineligible to be appointed as an arbitrator by operation of law – Held a person who is statutorily ineligible to act as an arbitrator cannot nominate or appoint another person as an arbitrator - A unilateral appointment by one party, where that party has exclusive power to appoint a sole arbitrator, violates the principle of impartiality and neutrality. Bhadra International (India) Pvt. Ltd. v. Airports Authority of India, 2026 LiveLaw (SC) 4 : 2026 INSC 6 Arbitration and Conciliation Act, 1996; Section 12(5) Proviso – Waiver of Ineligibility – “Express Agreement in ...

Supreme Court Quarterly Digest 2026 - Arbitration and Conciliation Act

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