The Supreme Court has appointed former Supreme Court judge Justice R.V. Raveendran as the sole arbitrator to adjudicate the commercial dispute between Kinetic Green Energy and Power Solutions Limited and Saera Electric Auto Limited concerning the manufacture, sale and distribution of Mayuri-branded electric three-wheelers.
A Bench comprising Justices Aravind Kumar and Vipul M. Pancholi passed the order after the parties jointly agreed that the dispute arising from their contractual arrangements should be referred to a sole arbitrator.
The dispute emanates from three agreements executed between the companies on August 26, 2025, including a Manufacturing Agreement, a Supply and Distribution Agreement and an Intellectual Property Agreement.
Under the Manufacturing Agreement, Saera was to undertake the exclusive manufacture of vehicles for Kinetic Green in accordance with specifications agreed between the parties. The contractual arrangement also contained provisions concerning exclusivity and non-compete obligations and contemplated a term of 20 years.
A dispute subsequently arose over Saera’s manufacture and sale of electric vehicles under the Mayuri brand, including the Mayuri Rattan L5 Auto and other proposed models.
Kinetic Green contended that these vehicles fell within the contractual scope of the exclusivity and non-compete covenants. According to the company, their continued manufacture and commercial exploitation by Saera would undermine the contractual protection negotiated between the parties.
Saera, on the other hand, disputed this interpretation. It maintained that the Mayuri vehicles constituted part of its pre-existing business and that the contractual definition of the vehicles covered by the exclusivity arrangement did not extend to the models identified by Kinetic Green.
The dispute had earlier reached the Commercial Court at Bengaluru, where Kinetic Green invoked Section 9 of the Arbitration and Conciliation Act, 1996, seeking interim protection.
The Commercial Court had granted interim relief to Kinetic Green and restrained Saera from taking steps towards the launch, manufacture, marketing, supply, distribution or sale of certain vehicles covered by the contractual arrangement. The interim protection was directed to remain in force for three months or until constitution of the arbitral tribunal, whichever occurred earlier.
Saera challenged that order before the Karnataka High Court under Section 37 of the Arbitration Act. At the initial stage, the High Court stayed the Commercial Court’s order, while directing Saera not to launch any new vehicle and to maintain accounts relating to the manufacture of its auto-shaped electric three-wheelers.
The matter thereafter came before the Supreme Court in an appeal arising from the High Court proceedings.
During the hearing before the apex court, senior counsel appearing for both sides agreed that the disputes should be placed before an arbitral tribunal. Although the original contractual arrangement contemplated a three-member tribunal, the parties jointly proposed that Justice R.V. Raveendran be appointed as the sole arbitrator.
Accepting the consensual proposal, the Supreme Court constituted the arbitral tribunal and directed the parties to appear before Justice Raveendran on a date to be notified by him.
The Court also permitted the parties to seek appropriate interim measures under Section 17 of the Arbitration and Conciliation Act, 1996 before the newly constituted tribunal.
In the meantime, the Supreme Court modified the interim protection granted by the Karnataka High Court. Instead of a blanket restriction on the launch of any new vehicle, the Court directed that Saera would not launch or manufacture the vehicles specifically identified in Annexures A and B to the August 26, 2025 agreement, read with the relevant contractual specifications.
This arrangement is to remain operative until the arbitral tribunal considers and passes orders on any application for interim measures filed under Section 17.
The Supreme Court consequently set aside or modified the orders passed by the Bengaluru Commercial Court and the Karnataka High Court to the extent indicated in its order, while leaving the arbitral tribunal free to consider the parties’ applications independently and without being influenced by observations contained in the earlier proceedings.
Justice R.V. Raveendran, who served as a judge of the Supreme Court from September 2005 until his retirement in October 2011, will now adjudicate the contractual controversy between the two companies.
The Supreme Court disposed of the appeal with these directions, leaving the substantive contractual disputes concerning exclusivity, non-compete obligations and the scope of the parties’ commercial agreements to be determined in arbitration.
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