Quick Summary: A court in Delhi canceled a previous decision made by an arbitrator in a disagreement between M/S Jay Fe Cylinders Ltd. and Manish Jain about a failed business partnership. The court found that the person who made the original decision ignored important parts of the contract and didn't explain their decision well.
M/S Jay Fe Cylinders Ltd., a company in New Delhi that makes CNG and LPG cylinders, made deals with a foreign partner and Manish Jain to start a business together. The goal was to build a manufacturing plant in India.
The first deal, called the Memorandum on Joint Participation (MOJP), was signed on September 2, 2016, and was supposed to last for two years. Another deal, the Memorandum of Understanding (MOU), was signed on August 3, 2017, with Manish Jain. Jain was supposed to help set up the business and make sure everything followed the rules.
Jay Fe Cylinders wanted their first payment back, while Jain asked for more money. The arbitrator decided in favor of Jain, agreeing with his requests and denying the refund.
"The arbitrator ignored the relevant parts of the MOU and was influenced by the one-sided ending," said Justice Avneesh Jhingan.
The judgment, delivered on February 2, 2026, by Justice Avneesh Jhingan, highlights the need for decision-makers to consider all parts of a contract and provide clear and understandable explanations for their decisions.
