Supreme Court Weekly Digest February 1 - 5, 2026

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 116Arbitration and Conciliation Act, 1996; Section 29A(4) & 29A(5) - Power of Court to extend mandate after rendering of award – The Supreme Court held that an application for extension of the arbitrator's mandate under Section 29A(5) is maintainable even if it is filed after the expiry of the statutory period (12 months plus optional 6 months) and even after the award has been rendered in the interim - Noted that an award passed after the mandate has expired is unenforceable under Section 36 and "non est," but the arbitrator's indiscretion in passing such an award does not denude or impair the Court's jurisdiction to entertain an extension application. C. Velusamy v. K. Indhera, 2026 LiveLaw (SC) 105 : 2026 INSC 112Arbitration and Conciliation Act, 1996; Sections 8 and 11 — Arbitrability and Allegations of Fraud — Whether disputes can be referred to arbitration when the very existence of the arbitration agreement is seriously disputed on allegations of forgery and fabrication — Held: When allegations of fraud are made regarding the arbitration agreement itself, the dispute is generally recognized as non-arbitrable - Arbitration is founded upon consent, and a party can only be bound if it is shown, at least prima facie, that they agreed to the process - Where an arbitration clause is embedded in a document (such as the "Admission Deed") whose existence is stoutly denied and alleged to be forged, the controversy strikes at the root of arbitral jurisdiction – Noted that in such cases, the court must examine the issue as a jurisdictional inquiry rather than referring the matter to an arbitrator - While findings in Section 9 proceedings are prima facie, once they attain finality (e.g., via dismissal of an SLP), they cannot be ignored in subsequent proceedings under Sections 8 and 11 involving the same issue. Rajia Begum v. Barnali Mukherjee, 2026 LiveLaw (SC) 101 : 2026 INSC 106Arbitration and Conciliation Act, 1996 — Section 11, Section 16, and Section 34 — Pre-2015 Amendment Regime — Binding Nature of Section 11 Order — Res Judicata — Held that in cases governed by the SBP & Co. v. Patel Engineering Ltd. regime (prior to the 23.10.2015 amendments), the Section 11 Court exercised judicial power to determine the existence and validity of an arbitration agreement - Such a determination, even if implied, is binding on the parties at all subsequent stages, including before the Arbitral Tribunal and the Section 34 Court – Noted that the respondents, having failed to challenge the appointment order in the Supreme Court, cannot subsequently argue that the clause (Clause 23) was not an arbitration agreement. Eminent Colonizers v. Rajasthan Housing Board, 2026 LiveLaw (SC) 109 : 2026 INSC 116Arbitration and Conciliation Act, 1996 – Section 34 & Section 37 – Scope of Judicial Review – Modification of Arbitral Awards – Power to Modify – The Supreme Court upheld the power of a Court under Section 34 to modify an arbitral award to a limited extent, particularly when applying contractually agreed clauses to admitted facts – Noted that a Section 37 Court cannot substitute its own view for a plausible view taken by a Section 34 Court regarding the determination of "reasonable compensation" unless that determination is arbitrary or perverse. Saisudhir Energy Ltd. v. NTPC Vidyut Vyapar Nigam Ltd., 2026 LiveLaw (SC) 112 : 2026 INSC 103Armed Forces Tribunal Act, 2007 – Section 14 – Judicial Review of Show Cause Notice – Where a Show Cause Notice for termination (under Regulation 216 of Navy Regulations) is directly premised on the findings and recommendations of an ICC report, the Tribunal cannot dismiss the challenge as "premature" or "merely at the preliminary stage" - The Tribunal is duty-bound to adjudicate upon the correctness of the ICC report and recommendations which form the foundational basis of the termination notice. 42605-B CDR Yogesh Mahla v. Union of India, 2026 LiveLaw (SC) 103 : 2026 INSC 107Constitution of India, 1950; Article 227 — Code of Civil Procedure, 1908; Order VII Rule 11 and Order VI Rule 16 — Supervisory Jurisdiction vs. Statutory Remedy — The Supreme Court held that the High Court cannot invoke its supervisory jurisdiction under Article 227 to strike off a plaint when a specific statutory remedy for rejection of the plaint exists under Order VII Rule 11 of the CPC -...

Supreme Court Weekly Digest February 1 - 5, 2026

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Supreme Court Weekly Digest February 1 - 5, 2026

LIVELAW NEWS NETWORK

This is a premium content Available exclusively to Our subscribers

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This is a premium content
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