High Court cannot review or reopen an order passed under Section 11(6) of the Arbitration and Conciliation Act once the arbitral process has commenced – SC

In Hindustan Construction Company Ltd. v. Bihar Rajya Pul Nirman Nigam Ltd. (SLP (C) No. 4211 of 2025; 2025 INSC 1385), the Supreme Court held that a High Court cannot review or reopen an order passed under Section 11(6) of the Arbitration and Conciliation Act once the arbitral process has commenced.

The Court observed that the power under Section 11 is narrow and there is no statutory basis for a review or reconsideration of such orders, especially after parties have actively participated in the arbitration. It reiterated that the Arbitration Act is a self-contained code, and once an arbitrator is appointed, the referring court becomes functus officio.

The Court further held that the arbitration agreement under Clause 25 was valid and subsisting, noting that both parties had invoked the clause on multiple occasions, participated in over seventy hearings, and jointly sought extensions under Section 29A, signifying clear waiver of any objections to arbitrability.

Accordingly, the Supreme Court restored the arbitral process and clarified that in circumstances where the arbitrator becomes unable to continue, the appropriate course is to appoint a substitute arbitrator under Section 15(2), rather than nullifying the proceedings altogether.

For any clarification, please write to [email protected]

Delhi High Court rejects concept of Virtual Service PE de hors specific clause in DTAA

The Delhi High Court in the case of Clifford Chance Pte. Ltd. (“taxpayer”) dismissed Revenue’s appeals against the Tribunal order, holding that in absence of a specific clause in the India-Singapore DTAA, it was not open to the tax authorities to import the concept of Virtual Service Permanent Establishment into the India-Singapore DTAA to bring to tax profits of the non-resident taxpayer in India.

The High Court further held that in computing the number of days spent in India for determining the constitution of Service PE in terms of Article 5(6)(a) of the DTAA, the days on which the employees of the taxpayer were on vacation and the days spent in India on business development shall be excluded. Also, in case of common days spent by employees, the number of days shall be computed on an overall basis and not on the basis of man days spent.

The team from Vaish Associates Advocates, comprising Mr. Aditya Vohra, Mr. Kunal Pandey and Mr. Tanmay Dhakras, Advocates, briefed Mr. Ajay Vohra, Senior Advocate.

For any further information/clarification, please feel free to write to:

Mr. Aditya Vohra at [email protected] and Mr. Kunal Pandey at [email protected].

Customs and GST Alert – December 2025

We are pleased to share with you our latest Customs and GST Alert, covering recent judgments and regulatory updates.

We trust that you will find the same useful.

Looking forward to receiving your valuable feedback.

India Notifies Four Transformative Labour Codes Consolidating 29 Central Laws – A Landmark Reform in Labour Governance

In a major structural overhaul of India’s labour regulatory regime, the Government of India has announced the enforcement of the four consolidated Labour Codes, Code on Wages (2019), Industrial Relations Code (2020), Social Security Code (2020), and Occupational Safety, Health and Working Conditions Code (2020), effective 21 November 2025.

These reforms streamline 29 existing Central labour laws into a modern, unified framework aimed at strengthening worker welfare, enhancing social security coverage (including for gig and platform workers), boosting women’s workforce participation, and simplifying compliance through single registration and licensing systems. Importantly, the existing labour laws and subordinate rules will remain in force during the transitional period, until corresponding rules and schemes under the new Codes are notified.

This marks a pivotal shift towards a more formal, secure and future-ready labour ecosystem aligned with evolving work structures and economic growth priorities.

For any clarification, please write to [email protected]