Authority: Supreme Court of India, Civil Original Jurisdiction
Order Date: 30 September 2026
Case Overview
- Parties: Finecure Pharmaceutical Limited (Indian public limited company) as petitioner; Spirit Pharmaceutical LLC (U.S. LLC) as Respondent No. 1; an unnamed U.S. company referred to as Respondent No. 2.
- Dispute arises from a Manufacturing and Supply Agreement dated 11 March 2022 and an Exclusive Relation Agreement dated 11 March 2022, governing manufacture of pharmaceutical products for sale in the United States.
- Clause 16 of the MSA and Clause 17 of the ERA provide for arbitration in English, seat New Delhi, governed by the Arbitration and Conciliation Act, 1996.
- Respondent 1 allegedly defaulted on payment of USD 1,583,567.53 for invoices issued between March 2024 and October 2024.
- Petitioner issued a notice of default on 3 Oct 2024, a termination notice on 14 Oct 2024, and a notice invoking arbitration on 18 Oct 2024; Respondent 1 did not respond.
- Respondent 2 acquired the assets and business of Respondent 1 through a sale by Respondent 1’s secured lender; Respondent 2 claims acquisition free of liabilities, while petitioner alleges joint and several liability.
- Petitioner also filed two Section 9 petitions before the High Court of Delhi (O.M.P.(I) (Comm.) No. 366 of 2024 and No. 420 of 2024); the High Court, by order dated 24 Oct 2024, restrained Respondent 1 from alienating assets up to the claimed amount. Both petitions remain pending.
Final Outcome
- The Supreme Court allowed the arbitration petition under Section 11(9) of the 1996 Act.
- Justice Siddharth Mridul, former Chief Justice of the High Court of Manipur, is appointed as the sole arbitrator.
- The seat and venue of arbitration are New Delhi, India; the proceedings will be conducted in English and in accordance with the 1996 Act.
- All objections, including jurisdiction, arbitrability, limitation, pre‑arbitral consultation compliance, and effect of the asset sale, are left for the arbitrator to decide.
- The arbitrator may fix his/her own remuneration in consultation with the parties; fees and expenses will be borne as per the arbitration agreements, subject to the award.
- The Registry is directed to communicate the order to the arbitrator and parties within one week.
- Pending interlocutory applications, if any, are disposed of; High Court petitions will continue independently.
Topics: Arbitration, Pharmaceutical Payment Dispute