SC on Section 9 Arbitration Interim Reliefs
Judgment dated 24.9.2206 of the Supreme Court of India in Civil Appeal No.13117 of 2026 of Kinetic Green Energy and Power Solutions Limited Vs. Saera Electric Auto Limited.
The controversy between the parties has its origin in three agreements executed on 26th August 2025, namely, the Manufacturing Agreement, the Supply and Distribution Agreement and the Intellectual Property Agreement. Under the Manufacturing Agreement, the respondent was to exclusively undertake the manufacture of vehicles for the appellant in accordance with the agreed specifications. The agreement contained, inter alia, provisions concerning exclusivity and non-compete obligations. The agreement stipulated its Effective Date and prescribed a contractual term of twenty years. The parties thereafter proceeded under the contractual framework which contemplated, amongst other things, subsequent purchase orders and commencement of sales at a later stage.
A dispute subsequently arose concerning the manufacture and sale by the respondent of vehicles under the Mayuri brand, including Mayuri Rattan, as also certain vehicles proposed to be introduced by it. The appellant’s case was that the vehicles in question were within the contractual field of exclusivity and non-compete obligations and that their continued manufacture, marketing and sale would defeat the very protection which the agreements were intended to secure.
The appellant filed section 9 petition in the Commercial Court.
The Commercial Court thereafter directed, inter alia, that the respondent be restrained from taking steps towards the launch, manufacture, marketing, supply, distribution or sale of new vehicles or products similar to the vehicles contemplated under the Manufacturing Agreement, and from continuing or taking further steps towards manufacture, marketing, distribution and sale of the existing Mayuri
Having appointed the learned Arbitrator and the Arbitral Tribunal having thus been constituted, the parties shall be at liberty to file the necessary application under Section 17 of the Act before the Arbitral Tribunal seeking appropriate interim measures, as permissible in law. Consequently, we modify the impugned order passed by the High Court in paragraph No.12 which is to the effect “however, the appellant will not launch any new vehicle” by substituting the same “that the respondent herein will not launch or manufacture the vehicles as described in Annexures – A and B of the agreement dated 26th August, 2026 read with Clause 1.1 – specifications and vehicles as indicated therein” which shall be operative till orders are passed on the application that may be filed under Section 17 of the Arbitration and Conciliation Act, 1996.
