Practice note

Commercial Contracts, Corporate Advisory and Arbitration

Commercial relationships are governed by the Indian Contract Act, 1872 and, in the case of companies, the Companies Act, 2013. Disputes are resolved before the Commercial Courts or by arbitration under the Arbitration and Conciliation Act, 1996, which confines judicial intervention to the matters for which the Act provides.

Statement of law as on 19 October 2026Lex Meridian · Advocates & Legal Consultants

In brief

Damages for breach of contract are compensatory (Section 73); a sum named in the contract under Section 74 is the upper limit, and legal injury must still be established.
Interim measures in aid of arbitration may be sought from the court under Section 9 or from the arbitral tribunal under Section 17.
An unstamped or insufficiently stamped arbitration agreement is not void; the defect in stamping is curable.
An arbitral award may be set aside only on the limited grounds in Section 34, by an application made within three months of its receipt, extendable by thirty days.

Governing law

Indian Contract Act, 1872: Sections 10, 23, 27, 56, 73, 74 and 124 to 147 (indemnity and guarantee).
Arbitration and Conciliation Act, 1996: Sections 7, 8, 9, 11, 12 (independence and impartiality), 16, 17, 21, 29A, 34, 36 and 37.
Companies Act, 2013: Section 166 (duties of directors), Sections 241 and 242 (oppression and mismanagement), and statutory compliance.
Commercial Courts Act, 2015: Jurisdiction over commercial disputes of the specified value and over arbitration matters arising from them.

How the matter is handled

Stage	Steps taken	Indicative time
1. Review	Analysis of the contract, the dispute-resolution clause, notices, limitation and the evidence of breach.	First week
2. Notice	Notice of breach, or notice invoking arbitration under Section 21.	30 days
3. Interim relief	Application under Section 9 to the court, or under Section 17 to the tribunal, for preservation of assets or an injunction.	As required
4. Constitution of the tribunal	Appointment of the arbitrator by agreement, or by the High Court under Section 11.	1 to 3 months
5. Award and enforcement	Pleadings, evidence and award within the period in Section 29A; challenge under Section 34 or enforcement under Section 36.	12 to 18 months

Leading judicial authorities

In Re: Interplay between Arbitration Agreements under the Arbitration and Conciliation Act, 1996 and the Indian Stamp Act, 1899
(2024) 6 SCC 1 (Constitution Bench)
Agreements that are unstamped or insufficiently stamped are not void or unenforceable; non-stamping is a curable defect and is not to be determined at the stage of Section 8 or Section 11.
Cox and Kings Ltd. v. SAP India Pvt. Ltd.
(2024) 4 SCC 1 (Constitution Bench)
Recognised the group of companies doctrine: a non-signatory may be bound by an arbitration agreement where the conduct and common intention of the parties so indicate.
Gayatri Balasamy v. ISG Novasoft Technologies Ltd.
Constitution Bench, 30 April 2025
Courts exercising jurisdiction under Sections 34 and 37 have a limited power to modify an arbitral award, including by severing invalid parts and correcting clerical or computational errors.
Ssangyong Engineering & Construction Co. Ltd. v. National Highways Authority of India
(2019) 15 SCC 131
After the 2015 amendment, the public-policy ground under Section 34 is narrowly confined, and an award cannot be set aside merely for an erroneous application of the law.
Kailash Nath Associates v. Delhi Development Authority
(2015) 4 SCC 136
Under Section 74 of the Contract Act, the sum named is the upper limit of compensation, and reasonable compensation is payable only where legal injury results from the breach.

Latest judgments & updates

LiveLoading…

Recent judgments of the Supreme Court, the High Courts and tribunals, and court reports, concerning Corporate, Contracts & Arbitration. Updated automatically through the day.

Documents to keep ready

The contract with all annexures and amendments
Correspondence, minutes of meetings and notices
Invoices, statements of account and proof of loss
Company records and authorisations

Frequently asked questions

Can a court refuse to refer parties to arbitration?

Under Section 8, as amended in 2015, the judicial authority must refer the parties to arbitration unless it finds that, prima facie, no valid arbitration agreement exists.

How long does an arbitration take?

Section 29A requires the award to be made within twelve months of the completion of pleadings, extendable by six months by consent of the parties and thereafter only by the court.

This note states the law in general terms as on 19 October 2026. It is not legal advice and does not create an advocate–client relationship. Judgments are summarised for reference and should be read in full from the official reports; the facts of each matter may alter the position.

Related practice areas

Other matters we handle

Insolvency & Bankruptcy

IBC, 2016 · Sections 7, 9, 10, 14, 29A and 95

Corporate insolvency resolution, claims of financial and operational creditors, personal guarantor proceedings and liquidation before the NCLT and the NCLAT.

Read the note

International Law

Arbitration Act, Part II · CPC, Sections 13 and 44A · FEMA, 1999

International commercial arbitration, enforcement of foreign awards and decrees, cross-border family matters and regulatory compliance for overseas transactions.

Read the note

DRT & DRAT

RDB Act, 1993 · SARFAESI Act, 2002

Representation of borrowers, guarantors and creditors in original applications, SARFAESI securitisation applications and appeals before the DRAT.

Read the note