Today Homes and Infrastructure Pvt. Ltd. vs. Ludhiana Improvement Trust and Ors.

SC/0513/2013: 2013 INSC 340

 

The key issue in the case of Today Homes and Infrastructure Pvt. Ltd. vs. Ludhiana Improvement Trust and Ors. was whether the arbitration agreement could survive independently despite the main agreement being declared void. The Supreme Court of India found that the designated Judge of the Punjab and Haryana High Court exceeded his jurisdiction by delving into the merits of the case rather than focusing on preliminary issues like the existence of a valid arbitration agreement. Citing the precedent set by SBP & Co. v. Patel Engineering Ltd., the Court held that an arbitration agreement can stand independently of the main contract. The appeals were disposed of, and the matter was remanded for reconsideration in light of these observations, with each party bearing its own costs.