Allied Blenders and Distillers: Arbitration proceedings terminated by Arbitral Tribunal
Allied Blenders and Distillers' arbitration proceedings against Canteen Stores Department have been terminated by the Arbitral Tribunal. The tribunal ruled that no arbitration agreement exists, thus lacking jurisdiction. The company plans to pursue legal remedies for claim recovery.
The termination of arbitration proceedings impacts the company's ability to recover disputed claims through this specific legal channel. However, the company's intention to pursue further legal remedies suggests that the ultimate financial impact is yet to be determined.
The arbitration proceedings have been terminated due to a lack of jurisdiction. While this is a procedural outcome, the company intends to pursue legal remedies, indicating a neutral stance as the merits of the claim are yet to be adjudicated.
Allied Blenders and Distillers Limited has announced an update regarding arbitration proceedings initiated against the Canteen Stores Department (CSD), Ministry of Defence. The arbitration was related to disputes arising from debit notes and recoveries concerning supplies of Officer's Choice Prestige Whisky.
A Sole Arbitrator was appointed by the Hon'ble Bombay High Court. The company filed its Statement of Claim, and subsequently, CSD filed an application challenging the jurisdiction of the Arbitral Tribunal, asserting that no valid arbitration agreement existed between the parties.
On September 26, 2026, the Sole Arbitrator, through an oral order (written order received on September 30, 2026), ruled that no arbitration agreement exists between the parties. Consequently, the Arbitral Tribunal was found to lack jurisdiction, leading to the termination of the arbitration proceedings.
It is important to note that this order is limited to the issue of jurisdiction and does not adjudicate the merits of the company's claims. Allied Blenders and Distillers Limited intends to pursue appropriate legal remedies against this order to protect its interests and initiate proceedings for the recovery of the disputed claim.
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Allied Blenders and Distillers Limited filed this with the NSE as a statutory disclosure, categorised under litigation updates. It is a primary document, not a recommendation, and the desk marks it medium impact: worth reading, rarely worth acting on by itself.
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