Arbitrator Rules No Arbitration Agreement With CSD; Proceedings Terminated

The Sole Arbitrator ruled on Sept 26, 2026 that no Arbitration Agreement exists with Canteen Stores Department (Ministry of Defence), so the Tribunal lacks jurisdiction and the arbitration stands terminated.

Thu 1 Oct 2026

Arbitration Ruling Date

September 26, 2026

Ruling

No Arbitration Agreement exists with Canteen Stores Department (Ministry of Defence)

Tribunal Status

Arbitral proceedings have been terminated

Scope of Order

Order covers jurisdiction only, not merits

Company Response

Intends to pursue appropriate legal remedies and recovery of the disputed claim

What happened

The company had initiated arbitration against the Canteen Stores Department (CSD), Ministry of Defence, over disputes arising from debit notes and recoveries relating to supplies of Officer's Choice Prestige Whisky. A Sole Arbitrator had been appointed by the Bombay High Court under Section 11 of the Arbitration and Conciliation Act, 1996.

After the company shared its Statement of Claim, CSD shared an application under Section 16 challenging the Tribunal's jurisdiction, arguing no valid arbitration agreement existed.

The ruling

• The Sole Arbitrator, by oral order dated September 26, 2026 (written order received September 30, 2026), held that no Arbitration Agreement exists between the parties.
• Consequently, the Tribunal lacks jurisdiction, and the arbitral proceedings have been terminated.
• The order is limited to jurisdiction and does not decide the merits of the company's claims.

Next steps stated

The company intends to pursue appropriate legal remedies against the order to protect its interests, and to initiate appropriate proceedings for recovery of the disputed claim.

How it may be read

The forum chosen by the company for recovering the disputed amounts has closed, which can extend the time and route needed for any recovery. Because the claims were not decided on merits, the company's underlying position remains open to be pursued elsewhere.

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