The Supreme Court has appointed former Supreme Court Judge Justice R.V. Raveendran as the sole arbitrator to resolve a commercial dispute between Kinetic Green Energy and Power Solutions Limited and Saera Electric Auto Limited concerning the manufacture, marketing and sale of electric three-wheelers.
A Bench comprising Justice Aravind Kumar and Justice Vipul M. Pancholi passed the judgment on September 24, 2026, while also modifying the interim restrictions that had been imposed during the proceedings before the Commercial Court and the Karnataka High Court.
Background
The dispute arose from three agreements executed between the parties on August 26, 2025 - a Manufacturing Agreement, a Supply and Distribution Agreement and an Intellectual Property Agreement.
Under the Manufacturing Agreement, Saera was required to exclusively manufacture vehicles for Kinetic Green according to agreed specifications. The agreement also contained exclusivity and non-compete provisions and contemplated a contractual term of 20 years.
The disagreement concerned vehicles manufactured and proposed to be sold under the Mayuri brand, including Mayuri Rattan. Kinetic Green argued that these vehicles fell within the contractual restrictions on competing products. Saera disputed this position, contending that its Mayuri vehicles formed part of its pre-existing business and that the contractual definition of the covered vehicles was narrower than claimed by Kinetic Green.
Kinetic Green approached the Commercial Court, Bengaluru under Section 9 of the Arbitration and Conciliation Act, 1996, seeking interim protection.
The Commercial Court found that a prima facie case, balance of convenience and the possibility of irreparable injury had been established. It consequently restrained Saera from taking steps towards the launch, manufacture, marketing, supply, distribution or sale of certain new vehicles and also imposed restrictions concerning existing Mayuri-branded electric three-wheelers. The interim measures were to operate for three months or until constitution of the arbitral tribunal, whichever was earlier.
Saera challenged the order before the Karnataka High Court. At the first hearing, the High Court stayed the Commercial Court's order, while directing Saera not to launch any new vehicle and to maintain accounts of the auto-shaped vehicles manufactured by it.
Before the Supreme Court, both sides agreed that their disputes should be placed before a sole arbitrator. They jointly suggested Justice R.V. Raveendran, former Judge of the Supreme Court, for the appointment.
The Supreme Court accepted the request and held:
"Having heard the learned counsels appearing for the parties, we are of the opinion that the constitution of an Arbitral Tribunal to adjudicate the disputes between the parties would be the appropriate course of action at this stage. Accordingly, we request Justice R.V. Raveendran, former Judge of this Court, to kindly act as the sole Arbitrator in the matter."
The Court also permitted the parties to approach the newly constituted arbitral tribunal under Section 17 of the Arbitration and Conciliation Act for appropriate interim measures.
The Supreme Court modified the Karnataka High Court's direction that Saera would not launch any new vehicle. Instead, the restriction was narrowed to vehicles described in Annexures A and B of the agreement read with Clause 1.1 concerning specifications and vehicles.
The modified restriction will remain in force until the arbitrator passes orders on an application under Section 17. The Supreme Court further clarified that the arbitrator must consider any such application independently and without being influenced by observations made in the earlier court orders.
The Supreme Court accordingly set aside/modified the orders of the Commercial Court, Bengaluru and the Karnataka High Court and directed the High Court to consign the relevant appeal records to the file in view of the Supreme Court's order.
With these directions, the appeal was disposed of, and any pending applications were also disposed of.
Case Title: Kinetic Green Energy and Power Solutions Limited v. Saera Electric Auto Limited
