In Brief
NTPC Ltd. challenged a High Court order directing arbitration under the Arbitration and Conciliation Act following disputes over claims arising from a 2004 Letter of Award containing a Permanent Machinery of Arbitration (PMA) clause. The Supreme Court found that fundamental questions regarding whether litigative recourse is available when PMA's final appellate decisions are binding require settlement by a larger bench. The Court stayed arbitration proceedings pending three-Judge Bench determination, noted that the parties may pursue Cabinet Secretariat review under PMA procedures, and referred the matter for authoritative clarification of law, given its significant impact on government body disputes.
The lawyer headnote and full judgment text are available to registered users.