Synopsis

This judgment addresses the interplay between arbitration proceedings under the Arbitration and Conciliation Act, 1996, and the moratorium provisions under the Insolvency and Bankruptcy Code, 2016 (IBC). The core dispute arose when the Bombay High Court, while appointing a substitute arbitrator under Section 15(2) of the Arbitration Act, declared all proceedings conducted by the previous arbitrator during the period of IBC moratorium as a "nullity." The Supreme Court held that the High Court exceeded its jurisdiction under Section 15(2) by nullifying prior arbitral orders, as such power is not conferred by the Arbitration Act and undermines the statutory scheme which preserves the validity of prior proceedings upon substitution of an arbitrator.

1. Basic Information of the Judgment

Case Title: Ankhim Holdings Pvt. Ltd. & Anr. vs. Zaveri Construction Pvt. Ltd.

Jurisdiction: Civil Appellate Jurisdiction of the Supreme Court of India.

Case Number: Civil Appeal No. 779/2026 (Arising out of SLP(C) No. 11667/2024).

INSC Citation: 2026 INSC 137.

Bench Composition: A division bench comprising Justice J.B. Pardiwala and Justice K.V. Viswanathan.

Nature of Bench: Division Bench Judgment.

2. Legal Framework and Context

• Primary Statutory Provisions:
  Arbitration and Conciliation Act, 1996:
  Section 9: Provides for interim measures by court.
  Section 11: Governs appointment of arbitrators.
  Section 15: Deals with termination of mandate and substitution of arbitrator. Sub-section (2) mandates that a substitute arbitrator be appointed according to the rules applicable to the original appointment. Sub-section (4) provides that orders or rulings made prior to replacement shall not be invalid solely because of change in composition.
  Section 16: Empowers the arbitral tribunal to rule on its own jurisdiction.
  Section 17: Provides for interim measures by arbitral tribunal.
  Section 37: Specifies appealable orders.
  Insolvency and Bankruptcy Code, 2016 (IBC):
  Section 14: Imposes moratorium upon admission of Corporate Insolvency Resolution Process (CIRP), prohibiting institution or continuation of proceedings against the corporate debtor.
  Section 33: Deals with initiation of liquidation.
  Section 33(5): Provides for fresh moratorium upon liquidation.

• Key Judicial Precedents:
  Yashwith Constructions Pvt. Ltd. v. Simplex Concrete Piles India Ltd. , (2006) 6 SCC 204: Held that under Section 15(2), appointment of substitute arbitrator must be according to the rules applicable to the original appointment.
  Interplay Between Arbitration Agreements under Arbitration and Conciliation Act, 1996 & Stamp Act, 1899, In re, (

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