In Brief
NTPC and Hindustan Steel Works Construction had a contractual dispute governed by the Permanent Machinery of Arbitration (PMA). After PMA's appellate authority rejected review, the contractor sought arbitration under the Arbitration Act. The Delhi High Court appointed an arbitrator, finding NTPC had waived non-arbitration defences. The Supreme Court observed that the distinction between the PMA and judicially-created dispute mechanisms may have been misunderstood in earlier case law. It referred the fundamental question—whether formal arbitration remedies remain available when PMA orders are final and binding—to a three-Judge Bench for authoritative clarification, as the issue affects all government-to-government disputes. The matter was remanded with liberty to pursue Cabinet Secretariat resolution under PMA.
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