Legal Analysis: Nagreeka Indcon Products Pvt. Ltd. vs. Cargocare Logistics (India) Pvt. Ltd

Citation: 2026 INSC 384
Court: Supreme Court of India
Bench: Justice Sanjay Karol and Justice Nongmeikapam Kotiswar Singh (Division Bench)
Judgment Author: Justice Sanjay Karol
Date of Decision: April 17, 2026
Nature of Judgment: Civil Appeal under Article 136 against High Court order dismissing application for appointment of arbitrator under Section 11 of the Arbitration and Conciliation Act, 1996.

Synopsis of the Judgment

The dispute arose from a contract of carriage where the bill of lading contained an arbitration clause stating that disputes “can be settled by arbitration”. The appellant sought appointment of an arbitrator under Section 11 of the Arbitration and Conciliation Act, 1996. The respondent opposed, arguing that the word “can” indicates a choice, not a mandatory obligation to arbitrate. The High Court dismissed the application. The Supreme Court upheld this decision, holding that the use of the word “can” denotes a mere possibility or option, not a binding agreement to refer disputes to arbitration. Such a clause requires a further consensus between the parties before arbitration can be invoked, and therefore does not constitute a valid arbitration agreement under Section 7 of the Act.

1. Basic Information of the Judgment

Field Details Case Title Nagreeka Indcon Products Pvt. Ltd. vs. Cargocare Logistics (India) Pvt. Ltd. Civil Appeal No. Arising out of SLP(C) No. 19026 of 2023 Bench Justice Sanjay Karol and Justice Nongmeikapam Kotiswar Singh Date of Decision April 17, 2026 Citation 2026 INSC 384 Appeal FromOrder dated 23.02.2023 of Bombay High Court in Arbitration Application No. 168 of 2022

2. Legal Framework

Laws Involved:

• Arbitration and Conciliation Act, 1996 (A&C Act): Section 7 (definition of arbitration agreement), Section 11 (appointment of arbitrators by Court).

• Indian Contract Act, 1872: Principles of contractual interpretation.

• Code of Civil Procedure, 1908: Not directly applicable.

Precedents Cited:

• Jag

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