DENEL(PROPRITARY LIMITED) vs BHARAT ELECTRONICS LTD.

The Supreme Court addressed an Arbitration Petition under Section 11(6) of the Arbitration and Conciliation Act, 1996, concerning a dispute between a South African government-owned company and an Indian government enterprise. The Court held that the arbitration clause in the purchase orders was valid under Section 2(b) and Section 7 of the Act, affirming the necessity for appointing an arbitrator to resolve the payment dispute. The Court emphasized that the refusal to pay by the respondent based on government directives does not negate the obligation to arbitrate the dispute.