Supreme Court On Section 21: Arbitration Commences With Notice

The Supreme Court has drawn a clear and decisive line on a question that has repeatedly troubled Section 9 litigation: when does arbitration truly begin? In a firm reaffirmation of statutory principle, the Court in Regenta Hotels Pvt. Ltd. Vs. M/s Hotel Grand Centre Point & Ors. (2026 INSC 32) held that arbitral proceedings commence upon the Respondent’s receipt of a notice invoking arbitration under Section 21 of the Act. The filing of a Section 11 petition is merely a consequential judicial remedy and does not determine commencement. With this clarification, the Court brought clarity and consistency to the statutory framework and ensured that technical procedural requirements do not undermine substantive interim relief.