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Clause Stating ‘Can Be Settled by Arbitration’ Does Not Create Mandatory Obligation to Arbitrate: Supreme Court

18 Apr 2026 2 min read
Clause Stating ‘Can Be Settled by Arbitration’ Does Not Create Mandatory Obligation to Arbitrate: Supreme Court

The Supreme Court of India on 17 April 2026 delivered a significant judgment clarifying the legal requirement of a valid arbitration agreement. The bench comprising Justice Sanjay Karol and Justice N. Kotiswar Singh held that the use of the word “can” in an arbitration clause does not create a binding obligation to refer disputes to arbitration. Background of the Case The case titled NagreeKa Indcon Products Pvt. Ltd. VERSUS Cargocare…

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