Authority: Supreme Court of India

Order Date: September 24, 2026

Case Overview

  • Parties: SRS BUILDING MATERIAL SUPPLIER (Appellant) vs. M/S S.B. ASSOCIATES (Respondent).
  • Origin: Petition for Special Leave to Appeal (C) No. 21666/2026 arising from the High Court of Punjab & Haryana at Chandigarh’s impugned order dated 10‑04‑2026 in ARB No. 0780/2025.
  • High Court Position: Held that no arbitration agreement existed between the parties and declined to exercise power under Section 11 of the Arbitration and Conciliation Act, 1996 to appoint an arbitrator.
  • Arbitration Clause (as quoted in the order):

> "Any dispute or difference between the parties arising out of or touching upon the conditions covered under this agreement may be settled amicable by the Managing Director /Partner/Proprietor of Party‑A and Party‑B. in the event of disagreement, they may refer such dispute/differences Sole Arbitrator if the parties in dispute so agree, otherwise on arbitrator nominated by each of the Party. In the case of defences of opinion between them the decision of the umpire selected by them and the proceedings conducted as per Arbitration and Conciliation and binding on both the parties. However, the progress of the work will not be affected during arbitral proceedings or dispute resolving period."

  • Supreme Court Observation: The High Court was not justified in inferring an element of choice as to whether to arbitrate; the clause contemplated selection of a sole arbitrator or, failing that, each party nominating its own arbitrator.

Final Outcome

  • The appeal is allowed; the High Court order dated 10‑04‑2026 is set aside.
  • Ms. Kamini Lau, former District Judge, Delhi Higher Judicial Service, is appointed as the sole arbitrator to resolve the disputes inter se between the parties.
  • The appointed arbitrator must file her declaration/disclosure under Section 12 of the Arbitration and Conciliation Act, 1996 within fifteen (15) days of receiving a copy of this order.
  • She shall be entitled to fees prescribed under the Fourth Schedule to the 1996 Act.
  • All pending applications, if any, are ordered to stand disposed of.

Additional Procedural Details

  • Petition for Special Leave to Appeal (C) No. 21666/2026 was heard on 24‑09‑2026 before a bench of Hon’ble Mr. Justice Sanjay Kumar and Hon’ble Mr. Justice Sanjeev Sachdeva.
  • Counsel for the petitioner: Mr. Jitesh Malik, Adv.; Mr. Jatin Hooda, Adv.; Mr. Vikash Kumar, Adv.; Mr. Abhaya Nath Das, Adv.; Mr. Piyush Sharma, Adv.; Mr. Satish Kumar, AOR.
  • Counsel for the respondent: Mr. Parth Yadav, AOR; Mr. Akash Yadav, Adv.; Ms. Mani Munjal, Adv.
  • The Court reiterated leave granted and that the appeal is allowed as per the signed order; pending applications, if any, shall stand disposed of.

Topics: Arbitration, Court Order