Authority: Supreme Court of India, Civil Appellate Jurisdiction

Order Date: 24 September 2026

Case Overview

  • Parties: Kinetic Green Energy and Power Solutions Limited (Appellant) vs. Saera Electric Auto Limited (Respondent).
  • Origin: Three agreements dated 26 August 2025 – Manufacturing Agreement, Supply and Distribution Agreement, and Intellectual Property Agreement – signed digitally by Neha Gupta (date 25 September 2026, signature not verified).
  • Manufacturing Agreement: Granted Saera exclusive rights to manufacture vehicles for Kinetic Green, included exclusivity and non‑compete clauses, effective date specified, term of twenty years.
  • Dispute: Saera began manufacturing and marketing vehicles under the Mayuri brand (including Mayuri Rattan and Mayuri Rattan L5 Auto) which Kinetic Green claimed fell within the exclusivity scope. Saera argued the vehicles were part of its pre‑existing business and that no purchase orders or substantial consideration had been exchanged, so the commercial arrangement had not commenced.
  • Procedural History:
  • Commercial Court, Bengaluru (Com. A.A. No. 279 of 2026) under Section 9 of the Arbitration and Conciliation Act, 1996, found a prima facie case and granted interim relief restraining Saera from launching, manufacturing, marketing, supplying, distributing or selling new or similar vehicles for three months or until the arbitral tribunal was constituted.
  • High Court of Karnataka, Bengaluru (Division Bench, COMAP No. 396 of 2026, order dated 20 August 2026) stayed the Commercial Court order, observed the arrangement resembled a joint venture that had not taken off, noted lack of tangible consideration, and directed Saera not to launch any new vehicle while maintaining accounts of all “auto‑shaped vehicles”.
  • Both parties jointly requested the Supreme Court to appoint a sole arbitrator. They proposed Justice R.V. Raveendran, former Judge of the Supreme Court, for the role and agreed to file an application under Section 17 of the Arbitration Act for interim measures.

Final Outcome

  • The Supreme Court appointed Justice R.V. Raveendran as the sole arbitrator and directed the parties to appear before him on a date to be notified.
  • The Court modified the High Court order (paragraph 12) by substituting the wording to: “the respondent herein will not launch or manufacture the vehicles as described in Annexures A and B of the agreement dated 26th August 2026 read with Clause 1.1 – specifications and vehicles as indicated therein,” effective until orders are passed on any Section 17 application.
  • The orders dated 6 August 2026 of the Commercial Court and the 20 August 2026 High Court order staying that order are hereby set aside/modifed.
  • The High Court is directed to consign the records of COMAP No. 396/2026 for filing as per this order.
  • With these directions, the appeal is disposed of; any pending applications, if any, shall stand disposed of.

Topics: Arbitration, Automotive Manufacturing