Beyond Nomenclature: SC Reinforces Substance Over Form In Arbitration Agreement Interpretation

In a significant reaffirmation of the principles governing arbitration agreements, the Supreme Court of India has reaffirmed that the mere incantation of the word “arbitration” cannot salvage a clause that lacks the essential attributes of finality, neutrality, and binding effect. The judgment, delivered on 6 November 2025 by Justices Dipankar Datta and Augustine George Masih in M/s Alchemist Hospitals vs. M/s ICT Health Technology Services India, dismissed an appeal against the High Court of Punjab & Haryana's refusal to appoint an arbitrator under Section 11(6) of the Arbitration and Conciliation Act, 1996.

The dispute traces its origins to a Software Implementation Agreement dated 1st November 2018 between Alchemist Hospitals, a private healthcare institution based in Panchkula, Haryana, and ICT Health Technology Services India, a Bengaluru-based digital health solutions company. The respondent was tasked with implementing its proprietary “HINAI Web Software” to