HYTHRO POWER CORPORATION LTD. vs DELHI TRANSCO LTD.

The Supreme Court held that the rejection of the appellant's application under Section 11 of the Arbitration and Conciliation Act, 1996 was erroneous, as the existence of an arbitration agreement could not be adjudicated by the designate of the Chief Justice. The Court emphasized that the arbitral tribunal has the exclusive jurisdiction to determine the existence and validity of the arbitration agreement as per Section 16(1) of the Act. Consequently, the Court set aside the High Court's order and directed that the disputes be referred to arbitration.