M/S. ARDY INTERNATIONAL (P) LTD. . vs M/S. INSPIRATION CLOTHES & U. . — C.A. No. 3040/2005

Summary of C.A. No. 003040/2005 – Ardy International (P) Ltd. v. Inspiration Clothes & U. The Supreme Court set aside the High Court's judgment that had restrained arbitration proceedings. Ardy International claimed an arbitration agreement existed in invoices supplied to Inspiration Clothes, but the High Court rejected this. The Court found the proceedings were conducted under misconception of law, clarifying that Section 8 of the Arbitration and Conciliation Act, 1996 cannot restrain arbitration. The appeal was allowed with directions: Ardy must file a Section 8 application within two weeks seeking arbitration reference; the Civil Court shall dispose of it within six weeks; Inspiration may oppose on available grounds; and the Bharat Merchants Chamber shall take no further steps pending the Civil Court's order. No costs awarded. This case analysis is maintained by casestatus.in based on publicly available court records.