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(2026) Law Today Live Doc. Id. 20739 = 2026 INSC 4
(@ Special Leave Petition (Civil) No. 7338 of of 2025)
Decided on: 05.01.2026
A. Arbitration and Conciliation Act, 1996 (26 of 1996), Section 21 -- Notice for arbitration – Mandate of -- Section 21 is concerned only with determining the commencement of the dispute for the purpose of reckoning limitation -- There is no mandatory prerequisite for issuance of a Section 21 notice prior to the commencement of Arbitration -- Issuance of a Section 21 notice may come to the aid of parties and the arbitrator in determining the limitation for the claim -- Failure to issue a Section 21 notice would not be fatal to a party in Arbitration if the claim is otherwise valid and the disputes arbitrable.
(Para 16)
B. Arbitration and Conciliation Act, 1996 (26 of 1996), Section 21 --– Non-giving of notice for arbitration -- Scope of Arbitral Tribunal's Jurisdiction – Arbitral Tribunal was appointed at the request of the respondent-State to adjudicate on dispute no. (1) alone out of (4) -- By conduct of parties, the entire dispute have been thrown at large before the Arbitral Tribunal – No reason to set aside the award on the basis that the appointment of the Tribunal was only to adjudicate dispute No.1 -- Non-issuance of notice under Section 21 of the A&C Act by the appellant with regard to dispute no. 2 to 4 not fatal – Arbitral Tribunal not exceeded its jurisdiction in deciding the entire dispute.
(Para 14, 16)