M/S Shakti Bhog Foods Limited vs Kola Shipping Limited

The Supreme Court upheld the decision of the High Court affirming the order under Section 45 of the Arbitration and Conciliation Act, 1996, which allowed the respondent's application for arbitration regarding the dispute over demurrage charges. The Court established that the existence of an arbitration agreement is a prerequisite for referring the matter to arbitration, and the appellant's failure to load the agreed cargo constituted a breach of contract. The appeal was dismissed, affirming the lower court's ruling.