Arbitral Tribunal Alone Decides Who May Invoke Arbitration, Supreme Court Reiterates

The Supreme Court has dismissed two connected civil appeals arising out of orders dated 17 February 2023 passed by the High Court for the State of Telangana at Hyderabad under Section 11(6) of the Arbitration and Conciliation Act, 1996. The judgment, reported as 2025 INSC 1447, clarifies the narrow scope of judicial scrutiny at the referral stage and holds that the question whether an inpidual consortium member may singly invoke an arbitration clause is a substantive plea to be decided by the arbitral tribunal under Section 16 of the Act.

Factual backdrop

Andhra Pradesh Power Generation Corporation Limited ("APGENCO") floated a tender in 2010 for an EPC package at the Rayalaseema Thermal Power Plant open only to consortium bidders. A consortium comprising M/s. Tecpro Systems Limited (1st respondent), M/s. VA Tech Wabag Limited and M/s. Gammon India Limited was formed on 17 August 2010, designating Tecpro as leader. The Letter of Intent dated 30 October 2010 and