Case Law Analysis
|Supreme Court of India
Pre-deposit clause’s constitutionality referred to larger bench | 10% security requirement under Art 14 & Sec 18, Arbitration Act : SC
The Supreme Court has set aside the Commercial Court’s dismissal and referred the challenge to a larger bench, ordering a constitutional review of the 10 % pre-deposit security clause in arbitration agreements. The referral signals that such clauses may breach Article 14’s equality guarantee and conflict with Section 18 of the Arbitration Act, impacting contractors and public-sector projects.