Authority: Supreme Court of India

Order Date: 14‑08‑2026

Case Overview

  • Parties: Sparsh Hospitals and Critical Care Private Limited (petitioner) vs Cancer Treatment Services Hyderabad Private Limited (respondent).
  • Dispute stems from Agreement dated 08‑08‑2017 containing arbitration clause; respondent invoked arbitration under Section 21 of the Arbitration and Conciliation Act, 1996.
  • Telangana High Court constituted Arbitral Tribunal on 10‑07‑2025.
  • Respondent filed Section 9 application for interim relief before tribunal constitution; Commercial Court issued ex parte order on 10‑02‑2026 directing petitioner to deposit Rs 6,69,52,278.
  • High Court of Telangana affirmed this order on 21‑04‑2026; petition for special leave to appeal filed (C) No. 19268/2026.
  • Petitioner acknowledged liability in reply notice dated 21‑09‑2024.

Court Observations

  • With arbitral tribunal now constituted, the Court directs petitioner to furnish an unconditional bank guarantee of Rs 6,69,52,278 within six weeks, to remain effective throughout arbitration.
  • Respondent may approach the Arbitral Tribunal for release or invocation of the guarantee; Tribunal will decide on its merits.
  • The Section 9 petition under the Arbitration Act will not survive; Commercial Court may consign the proceedings to records.
  • Contempt proceedings initiated by respondent for non‑compliance with the Commercial Court direction will also not survive and are consigned to records.
  • Both parties may pursue their rights in the pending arbitration in accordance with law.

Final Outcome

  • The petition stands disposed.
  • Petitioner must provide the specified bank guarantee within six weeks.
  • Any pending applications are also disposed.

Topics: Arbitration, Bank Guarantee, Healthcare Litigation