Interpretation of the term 'can' appearing in arbitration clause of an agreement.
Recently, the Hon'ble Supreme Court in Nagreeeka Indcon Products Pvt. Ltd. v. Cargocare Logistics (India) Pvt. Ltd. (2026 INSC 384) interpreted the term 'can' appearing in an Arbitration Clause of an agreement. The issue that arose before the Court was to decide, when the arbitration clause in the contract uses the word ‘can’, does it necessitate the reference of all disputes to arbitration or is recourse to other dispute resolution mechanisms, including that of the Civil Court, open for the parties. Facts: Appellant before the Supreme Court was manufacturer of aluminium foil containers and kitchen rolls. It had received a contract for purchase of corrugated boxes of aluminium foil from M/s. American Alupack Industries, the delivery was to take place in USA. For the said purpose, the Appellant had entered into a contract with the Respondent. Disputes later arose between the parties with respect to the delivery of the said pro...