In Brief
The Supreme Court allowed the appeal and held that four inter-connected agreements for commissioning a 2 MWp solar power plant can be collectively referred to arbitration, even though one agreement (the Sale and Purchase Agreement) lacks an arbitration clause. The Court found all agreements form a single composite commercial transaction with a shared commercial object. Rejecting the respondents' reliance on allegations of fraud, the Court held that mere fraud claims are insufficient to defeat arbitration unless they are serious and complicated. The Court applied amended Section 8 of the Arbitration and Conciliation Act (2015), which allows reference 'notwithstanding any prior judgment.' All parties and agreements were referred to arbitration, with the parties free to agree on an arbitrator or approach the High Court for appointment. Appellants were directed to pay outstanding and future lease rent pending arbitration."
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