Firm Matters

Khaitan & Co successfully represented Tungabhadra Minerals Pvt Ltd. (“TMPL”) before the Hon’ble Supreme Court of India in a Special Leave Petition filed by Karnataka State Minerals Corporation Ltd (“KSMCL”).

KSMCL had inter alia sought for a sum of INR 220.33 Crores along with interest @18% per annum as well as re-transfer of mining leases against TMPL, and in this regard, had instituted proceedings for appointment of arbitrator before the Hon’ble High Court of Karnataka.

On 4 August 2025, the Hon’ble High Court of Karnataka, while relying upon Arif Azim Company Limited v Aptech Limited, (2024) 5 SCC 313, dismissed KSMCL’s Petition under Section 11 of the Arbitration and Conciliation Act, 1996 on the ground that the claims raised by KSMCL were barred by limitation. Mr Ganapathy Subbiah successfully argued on behalf of TMPL before the Hon’ble High Court of Karnataka.

Subsequently, the Review Petition filed by KSMCL was also dismissed by the Hon’ble High Court of Karnataka vide order dated 9 October 2025. 

Aggrieved by the orders passed by the Hon’ble High Court of Karnataka, KSMCL had preferred a Special Leave Petition before the Hon’ble Supreme Court of India, which was also dismissed by the Supreme Court vide its order dated 17 July 2026.

This development is significant as it affirms the position that the referral court under the Arbitration & Conciliation Act, 1996 can apply the “dead wood” principle, so as to protect the other party from being drawn into a time-consuming and costly arbitration process in respect of hopelessly time barred claims even where Governmental authorities are involved.