Supreme Court Weekly Digest January 11 - 20, 2026

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 Arbitration and Conciliation Act, 1996; Section 16 & 23 - Jurisdiction to decide disputes not specifically mentioned in invocation notice - Unless the arbitration agreement specifically restricts the tribunal to only decided "specifically referred disputes," the claimant is entitled to add or amend claims in the statement of claim, and the respondent is entitled to file counter-claims, provided they are arbitrable and within limitation - Where an arbitration clause is widely worded to cover "any matter arising out of or connected with the agreement," the tribunal has jurisdiction to entertain all such disputes once constituted. Bhagheeratha Engineering Ltd. v. State of Kerala, 2026 LiveLaw (SC) 31 : 2026 INSC 4 Arbitration and Conciliation Act, 1996; Section 16 — Doctrine of Competence-Competence — Arbitrability of Disputes — The determination of the substantive existence and validity of an arbitration agreement, as well as the arbitrability of the dispute, is the domain of the Arbitral Tribunal under Section 16 - The Referral Court is not the appropriate forum to conduct a "mini-trial" regarding the validity of the agreement. [Paras 15–16] Motilal Oswal Financial Services v. Santosh Cordeiro, 2026 LiveLaw (SC) 32 : 2026 INSC 5 Arbitration and Conciliation Act, 1996; Section 21 & 23 - Object of Section 21 Notice - The object of Section 21 is primarily to determine the commencement of arbitral proceedings for reckoning limitation - It is a procedural rather than a jurisdictional requirement. Failure to issue a Section 21 notice is not fatal to a party's claim if the dispute is otherwise arbitrable and covered by the arbitration agreement - The claims raised in a Section 21 notice do not restrict or limit the claims that can be subsequently raised before the Arbitral Tribunal in the statement of claim under Section 23 - held that an arbitral tribunal cannot decide disputes beyond a specific issue referred to it and that a party cannot raise additional disputes without issuing a separate notice under Section 21 of the Arbitration and Conciliation Act, 1996. Bhagheeratha Engineering Ltd. v. State of Kerala, 2026 LiveLaw (SC) 31 : 2026 INSC 4 Arbitration and Conciliation Act, 1996 — Interpretation of Contracts — Arbitral Autonomy — Patent Illegality — Section 34(2A) - held that the interpretation of the terms of a contract is primarily the domain of the Arbitral Tribunal - Even if a second view is possible, an award cannot be set aside merely because the appellate court prefers an alternative interpretation – Held that the Tribunal's decision to award idling charges for a Backhoe Dredger (BHD) under Clause 51.1 of the License Agreement despite the respondent's claim that Clause 38 only specified charges for "major dredgers" was found to be a logical and reasonable construction of the agreement - For an award to be set aside for patent illegality, the error must be apparent on the face of the award - A speaking award based on logical reasoning and proper interpretation of clauses does not suffer from patent illegality - a mere contravention of substantive Indian law is no longer a standalone ground for setting aside an award – Appeal allowed. [Relied on MMTC Limited vs. Vedanta Limited (2019) 4 SCC 163; UHL Power Company Limited vs. State of Himachal Pradesh (2022) 4 SCC 116; Bombay Slum Redevelopment Corporation Private Limited vs. Samir Narain Bhojwani (2024) 7 SCC 218; National Highways Authority of India v. M/s Hindustan Construction Company Ltd. 2024 INSC 388; Larsen Air Conditioning and Refrigeration Company vs. Union of India & Ors. (2023) 15 SCC 472; Paras 30-46] Jan De Nul Dredging India Pvt. Ltd. v. Tuticorin Port Trust, 2026 LiveLaw (SC) 47 : 2026 INSC 34 Arbitration and Conciliation Act, 1996 — Section 34 and Section 37 — Scope of Appellate Interference — The Supreme Court reiterated that the jurisdiction of an appellate court under Section 37 is extremely circumscribed and akin to the limited jurisdiction under Section 34 - An appellate court cannot undertake an independent assessment of the merits of the award or reappraise evidence as if it were an ordinary court of appeal - Its primary role is to ascertain whether the court ...

Supreme Court Weekly Digest January 11 - 20, 2026

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