Authority: Supreme Court of India, Civil Original Jurisdiction
Order Date: 28 September 2026
Case Overview
- Petitioner: Bharat Electronics Ltd., a Navratna public sector undertaking under the Ministry of Defence, engaged in design and manufacture of strategic electronic and defence communication systems.
- Respondent: M/s Schmid Telecom, Zurich, a Swiss sole proprietorship that designs, manufactures and markets IP‑based Voice Communication Systems (VCS) for Air Traffic Control.
- Dispute originates from the Technical Collaboration Agreement dated 26 June 2020, amended on 30 May 2022, for transfer of technology and engineering support to enable indigenisation of ICAO‑compliant IP‑based VCS.
- Clause 20 of the Agreement mandates arbitration in New Delhi administered by ICADR; however, ICADR was later statutorily substituted, leading the parties to propose IIAC, New Delhi.
- In 2023 the petitioner alleged the respondent failed to meet contractual milestones; the respondent claimed its performance was suspended due to non‑renewal of an earlier MoU dated 3 October 2019 and denied further obligations.
- The petitioner issued a notice of arbitration on 24 February 2025; the respondent did not respond despite service by publication.
Final Outcome
- The Supreme Court allowed the arbitration petition under Sections 11(5) and 11(6) of the Arbitration and Conciliation Act, 1996.
- Justice Chander Shekhar, former Judge of the Delhi High Court, is appointed as the sole arbitrator.
- The seat and venue of arbitration are fixed at New Delhi, India, to be administered by the India International Arbitration Centre (IIAC).
- The arbitrator is empowered to determine his own remuneration/fees.
- All pending interlocutory applications, if any, are disposed of.
Topics: Arbitration, Defence Procurement, International Commercial Dispute