Supreme Court Questions 2009 Ruling on Mandatory Pre-Deposit for Arbitration; Refers Issue to Larger Bench

Table of Contents

• Case Title: M/s Santosh Associate Private Limited v. Haryana State Industrial and Infrastructure Development Corporation Ltd.
• Case No.: SLP (C) No. 31245 of 2025
• Coram: Justice Manoj Misra and Justice Manmohan
• Court Observation

Case Title: M/s Santosh Associate Private Limited v. Haryana State Industrial and Infrastructure Development Corporation Ltd.

Case No.: SLP (C) No. 31245 of 2025

Coram: Justice Manoj Misra and Justice Manmohan

Court Observation

“A. Whether a stipulation requiring the contractor alone to make a pre-deposit of security/fees prior to reference of disputes to arbitration is contrary to Section 18 of the Act which mandates equal treatment of parties at all stages of arbitration?

B. Whether pre-deposit conditions in contracts having an arbitration clause discourages Alternative Dispute Resolution and undermine its objective of declogging the court system?

C. Whether a condition of pre-deposit of security/fees prior to reference to Arbitration is arbitrary and violative of the right to sue as well as Article 14 of the Constitution and Section 28 of the Indian Contract Act, 1872?

D. Whether requirement of pre-deposit of security/fees has any rational relation to the object of curbing frivolous claims as at that stage it cannot be said that the claims are frivolous and moreover such frivolous claims may adequately be addressed under Section 31(8) of the Act through imposition of costs at the conclusion of the arbitration proceedings?

E. Whether a pre-deposit condition is valid in an arbitration case where said deposit is refundable upon the conclusion of arbitration proceedings?

F. Whether S.K. Jain (Supra) is a valid and binding precedent?”

Supreme Court Questions 2009 Ruling on Mandatory Pre-Deposit for Arbitration; Refers Issue to Larger Bench https://api.sci.gov.in/supremecourt/2025/59205/59205_2025_9_1501_73395_Judgement_17-Aug-2026.pdf