Authority: Supreme Court of India
Order Date: 06 October 2026
Case Overview
- Parties: Appellant – M/S Sumac International Limited; Respondent – Shree Narmada Khand Udyog Sahakari Mandali Limited.
- Background: The appeals arose from High Court of Gujarat orders dated 09‑05‑2024 (dismissal of appellant’s appeal) and 11‑06‑2025 (allowance of respondent’s appeal, setting aside the arbitral award dated 17‑12‑2020). The award pertained to a Supplier Agreement dated 29‑12‑1990 and a Supplementary Agreement dated 15‑10‑1992.
- Mediation: Senior counsel Basava Prabhu Patil was appointed as mediator. After eleven mediation sessions, the parties executed a Joint Affidavit on 26‑09‑2026, confirming a voluntary, fraud‑free settlement.
- Settlement Terms (as per Joint Affidavit):
1. Respondent to pay Rs 2,10,00,000 (Rs 2.10 crore) to Sumac International Ltd, in addition to Rs 50,00,000 already deposited before the Additional District Judge, Rajpipla, in Section 34 proceedings.
2. Sumac International Ltd entitled to interest on the Rs 50,00,000 from the date of deposit until withdrawal/release.
3. The Rs 2.10 crore to be paid by demand draft on the next hearing before the Supreme Court.
4. Parties will request disposal of the Special Leave Petitions (SLPs) with orders facilitating withdrawal/release of the Rs 50,00,000 plus accrued interest.
5. Upon compliance, all disputes arising from the arbitral award of 17‑12‑2020 shall be fully and finally settled, with no further claims by either party.
6. The award dated 17‑12‑2020 is to be modified and substituted by this settlement.
Final Outcome
- The Court accepted the settlement, set aside the High Court judgments of 09‑05‑2024 and 11‑06‑2025, and disposed of the appeals.
- A demand draft of Rs 2,10,00,000 drawn by IDBI Bank in favour of the appellant was handed over to the appellant’s counsel.
- The parties are directed to abide by the settlement terms.
- All pending applications, if any, are ordered to stand disposed of.
Topics: Settlement, Arbitration, Supreme Court