YOGI AGARWAL vs M/S INSPIRATION CLOTHES & U .

The Supreme Court held that for a valid arbitration agreement under Section 7 of the Arbitration and Conciliation Act, the agreement must relate specifically to the transactions in dispute. The Court affirmed the lower courts' decisions that the invoices presented by the defendants did not constitute an arbitration agreement for the suit transactions, as they were unrelated. Consequently, the petition for reference to arbitration was dismissed, reinforcing the principle that an arbitration agreement must be directly applicable to the matter at hand.