M/S System For International Agencies vs M/S Rahul Coach Builders P. Ltd

The Supreme Court held that the arbitration clause in the sale contract dated 2nd May, 2011 was vague and unenforceable due to the absence of by-laws under the Indian Companies Act, 1956. The Court emphasized that without a clear arbitration agreement, as required under Section 11(6) of the Arbitration and Conciliation Act, 1996, no arbitrator could be appointed. Consequently, the petition for arbitration was rejected, allowing the parties to seek remedies through other legal avenues.