Authority: Supreme Court of India, Civil Appellate Jurisdiction

Order Date: September 22, 2026

Case Overview

  • Parties: CJ DARCL LOGISTICS LIMITED (Appellant) vs. BHARAT HEAVY ELECTRICALS LTD (Respondent).
  • Appeal: Civil Appeal No. /2026 (SLP(C) No. 7393/2025) arising from the High Court of Madhya Pradesh, Principal Seat at Jabalpur, judgment dated 03‑12‑2024 in IA No. 13899/2023 and ARBC No. 20/2022.
  • Background: The dispute centers on an arbitration clause in the parties’ agreement. The respondent never contested the existence of the clause. The High Court had insisted on production of the original or a certified copy of the agreement as a condition precedent for appointing an arbitrator, relying on its own 1997 rules.
  • Supreme Court Observation: The Court found the High Court’s approach “hidebound” and contrary to its own precedents, noting that the respondent’s non‑dispute of the arbitration clause renders the High Court’s requirement unreasonable.

Directions

1. Leave is granted to the appellant.

2. The appeal is allowed, setting aside the impugned judgments/orders of the High Court of Madhya Pradesh.

3. Mr. Manohar Mamtani, former District Judge, Madhya Pradesh, is appointed as the sole Arbitrator to resolve the disputes inter se between the parties.

4. The appointed Arbitrator must file his declaration/disclosure under Section 12 of the Arbitration and Conciliation Act, 1996, within fifteen (15) days from the date he receives a copy of this order.

5. The Arbitrator shall be entitled to fees prescribed under the Fourth Schedule to the 1996 Act.

6. Any pending applications, if any, shall stand disposed of.

Final Outcome

  • The Supreme Court has set aside the High Court’s judgments, granted leave, and appointed Mr. Manohar Mamtani as sole arbitrator, with procedural directions for his declaration and fee entitlement, and ordered disposal of any pending applications.

Topics: Arbitration, Court Order, Commercial Dispute