Nimet Resources Inc. And Anr. vs Essar Steels Ltd.

The Supreme Court addressed the applicability of Section 11(5) of the Arbitration & Conciliation Act, 1996, determining whether a valid arbitration agreement existed between the parties. The Court held that the mere opening of a letter of credit by the respondent indicated acceptance of the sales contract, thus establishing a dispute warranting arbitration. The Court emphasized that the arbitral tribunal has the authority to rule on its jurisdiction under Section 16 of the Act, affirming the need for arbitration despite the respondent's denial of the contract's existence.