Authority: Supreme Court of India (Civil Original Jurisdiction)
Order Date: 27 July 2026
Case Overview
- Parties: Ahmed Shamma (petitioner) vs Universal Industrial Plants Mfg. Co. (P) Ltd. (respondent).
- Contracts dated 10 Nov 2018, 27 Sep 2020 and 28 Jul 2023 for supply of a customised oxygen/nitrogen plant.
- Advance payments of approximately USD 176,690 (≈ INR 1.7 crore) were made by the petitioner.
- Dispute arose over alleged delays in development/manufacture, leading the petitioner to terminate the contracts and demand a refund; the respondent denied liability, citing incurred manufacturing and storage costs.
- Clause (iii) of the ‘Standard Terms and Conditions of Supply’ attached to the 28 Jul 2023 contract provides for reference of disputes to a sole arbitrator appointed by the respondent, with the seat at New Delhi.
- The respondent sent an Arbitration Notice on 28 Jan 2025 and filed a petition under Section 11(6) before the Delhi High Court. The petitioner, ordinarily resident in Egypt, filed the present petition under Section 11(9) before this Court.
Final Outcome
- The Supreme Court allowed the arbitration petition and appointed Justice Rakesh Kumar Jain, former Judge of the Punjab & Haryana High Court and former Member of the National Company Law Appellate Tribunal, as the sole arbitrator to resolve the disputes.
- The seat and venue of arbitration are fixed at New Delhi, in accordance with the arbitration agreement.
- The arbitrator is empowered to fix his/her own remuneration/fees.
- All pending interlocutory applications, if any, are disposed of.
Topics: Arbitration, Contract Dispute