The Supreme Court addressed whether disputes arising from two distinct agreements—the Mahanet Agreement and the T-Fiber Agreement—between the same parties should be handled by separate arbitrators or consolidated before a single forum when cross-project set-off claims are involved. Allowing the appeal against the Delhi High Court’s order, the bench modified the impugned decision and appointed Ms. Saumya Tandon, the sole arbitrator already presiding over the Mahanet Agreement dispute, to also adjudicate the disputes relating to the T-Fiber Agreement. The Court underscored the fitness of consolidating proceedings before the first-appointed arbitrator while leaving all merits, contentions, and cross-project set-off claims open for the arbitrator’s evaluation.
- Distinct Contracts: The dispute involves two separate project contracts executed between the parties, namely the Mahanet Agreement and the T-Fiber Agreement.
- Initial Arbitration: The respondent previously initiated arbitration under the Mahanet Agreement, leading to the appointment of Ms. Saumya Tandon as the sole arbitrator on September 16, 2025.
- Cross-Project Set-Off Claim: The appellant contended that a material recovery claim existing under the T-Fiber Agreement should be permitted as a cross-project set-off against amounts payable under the Mahanet Agreement.
- Consolidation of Proceedings: The Supreme Court concluded that in the fitness of things, the arbitration for both agreements should be carried out by the very same first-appointed arbitrator to avoid fragmented adjudication.
- Final Disposition: The appeal was allowed, the Delhi High Court’s order appointing a separate arbitrator was modified, and all contentions regarding the merits and quantum of claims were left open for the parties to raise before the sole arbitrator.
2026 INSC 969
M/s STL Networks Limited v. Caspian India Engicon Pvt. Ltd. (D.O.J. 07.09.2026)
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