Authority: Supreme Court of India
Order Date: 07-10-2026
Case Overview
- Petition for Special Leave to Appeal (C) No. 35170/2026 filed by Liberty Investments Pvt Ltd against Sunfield Global PTE Limited, arising from High Court judgment dated 22-09-2026 in CAA(L) No. 1634/2026.
- The High Court Division Bench had set aside a Single Judge order and:
a) Allowed the appeal;
b) Directed the respondent to furnish a bank guarantee of USD 66,92,500 (or INR equivalent) with interest and costs within two weeks;
c) Restraining the respondent from alienating the subject property until arbitration concluded.
- The Single Judge had dismissed a Section 9 petition (injunctive relief) on maintainability grounds, noting that the arbitral tribunal under the contract was constituted on 17‑11‑2025.
- The Division Bench, however, entertained the petition on merits, questioning the Single Judge’s approach and the efficacy of the arbitral tribunal’s powers under FOSFA Rules and English Arbitration Act Section 38.
- Counsel for the petitioner (Senior Counsel Shyam Divan) argued that the tribunal could grant the interim relief and that the claim for set‑off was pending before the tribunal.
- Counsel for the respondent (Senior Counsel Mukul Rohatgi, Parag P. Tripathi) contended that the Court should not intervene under Article 136, that the petitioner had admitted liability in a debt schedule dated 03‑10‑2025, and that the English Arbitration Act does not permit the relief sought.
- The Court observed that the arbitral tribunal, already mid‑hearing, is best placed to decide on interim relief, jurisdiction, any admission of liability, and the merit of a set‑off claim.
Final Outcome
- The Supreme Court set aside the High Court’s operative order and directed that the arbitral tribunal under the FOSFA Rules decide any interim relief.
- The respondent must move an appropriate application for interim relief before the tribunal on or before 16‑10‑2026.
- The injunction granted by the High Court will continue to operate until 20‑11‑2026.
- If the tribunal finds it lacks jurisdiction to grant injunctive relief, the impugned order will remain operative and the petitioner may pursue the SLP on merits.
- The Court expressly stated it has not entered upon the merits of the dispute and all contentions remain open for determination by the tribunal.
Topics: Arbitration, Injunction, Supreme Court Order