Disputes

BNSS and the pre-cognizance imperative: Procedural safeguard u/s 223 applies even to PMLA Complaints

Summary: The proviso to Section 223(1) of the BNSS, 2023, stipulates that a Magistrate shall not take cognizance of an offence without first affording the accused an opportunity to be heard. By its judgement in Kushal Kumar Agarwal v. Directorate of Enforcement[1] (“Kushal Kumar”),the Hon’ble Supreme Court has clarified that this safeguard under the BNSS shall also apply to complaints filed under Section 44(1)(b) of the Prevention of Money Laundering Act, 2002 (“PMLA”), after July 1, 2024, viz. the date BNSS came into force. The ratio from Kushal Kumar has since been followed inter alia by the High Courts of Delhi and Kerala. These judgements reinforce a significant procedural safeguard for accused persons even under the stringent PMLA, while highlighting a marked departure from the regime under the Code of Criminal Procedure, 1973 (“CrPC”). An associated issue is whether cognizance on a supplementary complaint under the PMLA, filed after July 1, 2024, will also be bound by the safeguard of Section 223(1) of the BNSS, if cognizance on the main complaint was taken prior to July 1, 2024.Continue Reading BNSS and the pre-cognizance imperative: Procedural safeguard u/s 223 applies even to PMLA Complaints

The MoRTH Circular to end arbitration in disputes over 10 crores: Unilateral Change or Contractual Overreach?

Summary: The Ministry of Road Transport and Highways (MoRTH) circular dated January 12, 2026, provides that arbitration will not be available for disputes exceeding INR 10 crore in BOT, HAM, and EPC contracts, purporting to replace existing dispute resolution clauses with immediate effect. This raises critical questions: Can a government circular unilaterally amend signed contracts that expressly require written consent for modifications? While prospective application may be defensible, retrospective substitution of dispute resolution mechanism, without mutual consent, presents serious enforceability concerns and challenges fundamental principles of contractual sanctity. The circular’s ambiguous carve-out for “ongoing arbitrations” adds further uncertainty, particularly about disputes at pre-arbitral stages. This development marks a significant departure from India’s pro-arbitration stance and warrants careful legal and policy scrutiny.Continue Reading The MoRTH Circular to end arbitration in disputes over 10 crores: Unilateral Change or Contractual Overreach?

Does mere existence of an Arbitration Agreement Sink a Plaint under Order VII Rule 11(d) of the CPC?

Introduction

The interplay between civil procedure and arbitration law often raises nuanced questions related to jurisdiction and maintainability. A recurring concern is the attempt to seek rejection of a plaint on the ground that the dispute is governed by a legally valid and subsisting arbitration agreement.Continue Reading Does mere existence of an Arbitration Agreement Sink a Plaint under Order VII Rule 11(d) of the CPC?

Cumulative Redeemable Preference Shareholders Cannot Trigger Insolvency Proceedings: Supreme Court

Summary: In EPC Constructions India Ltd. v. Matix Fertilizers & Chemicals Ltd., the Supreme Court addressed whether holders of non-cumulative redeemable preference shares can initiate insolvency proceedings under Section 7 of the IBC, as financial creditors. The Court held that preference shareholders are not creditors and cannot trigger insolvency proceedings, as preference shares remain part of the share capital even upon maturity, and conversion of debt into preference shares permanently extinguishes the original creditor relationship. This landmark judgement reinforces the fundamental distinction between debt and equity, clarifying that IBC remedies are available only to creditors and not shareholders.Continue Reading Cumulative Redeemable Preference Shareholders Cannot Trigger Insolvency Proceedings: Supreme Court

Law Governing the Arbitration Agreement Part II: India Aligns, UK Departs—Or Is It the Other Way Round?

Summary: India and the UK have taken opposite paths on determining the law governing arbitration agreements. India’s Supreme Court has embraced the three-stage Enka framework in Disortho S.A. v. Meril Life Sciences (2025), while the UK’s Arbitration Act 2025 establishes a bright-line rule defaulting to the law of the seat. This article examines both approaches and why precise drafting of dispute resolution clauses has become essential risk management in cross-border arbitration.Continue Reading Law Governing the Arbitration Agreement Part II: India Aligns, UK Departs—Or Is It the Other Way Round?

Arif Azim or Offshore Infrastructures? Analysing SC’s Divergent Takes on Commencement of Limitation for Section 11(6) Applications

Summary: The Supreme Court has created an interesting puzzle over when limitation begins for applications under Section 11(6) of the Arbitration and Conciliation Act, 1996, seeking appointment of arbitrators. While in Arif Azim, the Supreme Court established that limitation begins only after the other party refuses the request for appointment, in Offshore Infrastructures it decided that limitation starts when the final bill becomes due, i.e., when the substantive cause of action arises, conflating two distinct limitation periods. The article analyses this judicial divergence and highlights the need for legislative clarity to resolve the uncertainty.Continue Reading Arif Azim or Offshore Infrastructures? Analysing SC’s Divergent Takes on Commencement of Limitation for Section 11(6) Applications

Appellate Restraint And Equity In Specific Performance: Key Takeaways From Annamalai V. Vasanthi

Summary: This article examines the Supreme Court’s reinforcement of strict limits on second appeals and the equitable principles governing specific performance. For litigants, this clarifies that courts prioritise parties’ conduct and contractual good faith over rigid procedural requirements, fostering the need for a strategic approach to property dispute resolution.Continue Reading Appellate Restraint And Equity In Specific Performance: Key Takeaways From Annamalai V. Vasanthi

The “all or nothing” problem: Partial Enforcement of Foreign Arbitral Awards

Summary: When a foreign arbitral award hits a snag, should the entire award sink or can the enforceable part still sail through? Indian law is clear on severability for domestic awards, but foreign awards remain in a grey zone. While global practice leans toward partial enforcement to protect legitimate claims, India risks being an outlier. It’s time for a pragmatic shift that aligns with international norms and safeguards commercial certainty.Continue Reading The “all or nothing” problem: Partial Enforcement of Foreign Arbitral Awards

SEBI’s power to revisit penalty orders, including Nil penalties, under Section 15-I (3) of the SEBI Act, 1992

Summary: Section 15-I (3) of the SEBI Act, 1992, empowers SEBI to revisit and enhance penalties imposed by the adjudicating officer, including orders where no penalty is imposed, within a period of three months from the date of passing of the order. However, this power can be exercised only if the order passed by the adjudicating officer is erroneous and not in the interests of the securities market. This revisionary power represents a critical component of SEBI’s regulatory framework — it allows the market regulator to modify orders passed by the adjudicating officer.Continue Reading SEBI’s power to revisit penalty orders, including Nil penalties, under Section 15-I (3) of the SEBI Act, 1992

Milestone Payments vs Retention Money: The Fine Line That Can Decide Multi-Million Dollar Claims in Construction Disputes

Summary: Milestone payments and retention money serve distinct purposes in construction contracts—one drives progress, the other secures performance. Milestone payments become due only upon achieving defined stages, while retention is money already earned but withheld until final completion or defect rectification. Misconstruing these concepts can lead to costly disputes, making precise drafting and clear nomenclature critical for risk management and claim success.Continue Reading Milestone Payments vs Retention Money: The Fine Line That Can Decide Multi-Million Dollar Claims in Construction Disputes