Court directs preservation of goats, plasma, and confidential protocols pending arbitration; sets financial safeguards and appoints commissioner for inspection
In a significant interim order dated October 23, 2026, the Bombay High Court, presided over by Justice Amit Borkar, granted limited protective relief under Section 9 of the Arbitration and Conciliation Act, 1996 in a commercial dispute between Advy Biosciences Private Limited and Swaraj Lifesciences Private Limited. The dispute arose out of a Supply Agreement dated April 1, 2025, concerning a herd of immunised goats used for producing Anti-Human IgG (Fc) Serum (Goat) plasma and related confidential protocols.
The petitioner, Advy Biosciences, challenged the termination notice issued by the respondent, Swaraj Lifesciences, and raised concerns about the continued maintenance and health care of the goats immunised by the petitioner's proprietary immunogens and protocols. They contended that improper care or disclosure of confidential information could irreparably harm the productivity and commercial viability of the herd and plasma, which are vital to their business.
The respondent disputed ownership claims, stating the goats belonged to them, had been purchased and maintained at their expense, and denied any exclusive rights claimed by the petitioner over the biological materials or processes. They alleged that the petitioner had failed to meet minimum order commitments and delayed payments, causing financial losses.
The Court meticulously examined the contractual provisions, notably Clause 8.3(i) regarding termination and the requirement of specific default notices, and found serious triable disputes about whether proper termination procedures were followed. On the question of confidentiality and intellectual property, the Court recognized that contractual confidentiality obligations are distinct from patent rights and directed preservation of the petitioner's technical information to prevent defeat of arbitral remedies.
Balancing the interests, the Court acknowledged the respondent's substantial monthly maintenance expenses for the goat herd but accepted the petitioner's willingness to deposit pending invoice amounts, provide security towards the purchase price, and bear feed and medical expenses. Consequently, the Court granted interim relief subject to these financial safeguards.
Key directions included:
- The respondent was restrained from selling, transferring, slaughtering, or otherwise disposing of the goat herd or plasma in a manner that would undermine the arbitration process.
- The respondent was to continue proper veterinary care and immunisation procedures as per existing protocols.
- The petitioner was permitted to station one Livestock Supervisor at the respondent's farm to oversee health and protect confidential information.
- Preservation of plasma bottles and all relevant records, including electronic data and CCTV footage.
- Appointment of a Court Commissioner assisted by a veterinary professional to inspect the farm, verify the herd and plasma inventory, and monitor compliance.
- The petitioner was directed to commence arbitration proceedings within 90 days and both parties were to proceed with appointing a sole arbitrator.
The Court clarified that these interim measures do not determine ownership rights, validity of termination, or other contractual disputes, which remain reserved for the arbitral tribunal. The order aims solely to preserve the status quo and prevent irreparable harm pending final resolution.
This judgment underscores the Bombay High Court's approach in safeguarding subject matter critical to arbitration without prejudging substantive rights, applying established principles of interim relief-prima facie case, balance of convenience, and irreparable injury-as laid down by the Supreme Court in Adhunik Steels Ltd. and Essar House Pvt. Ltd.
Bottom Line:
Arbitration and Conciliation Act, 1996 Section 9 Interim measures - Dispute arising out of supply agreement involving herd of immunised goats, plasma, confidential protocols and termination notice - Court held that at Section 9 stage it would not finally decide validity of termination, ownership of goats/plasma, confidentiality and financial claims, but can grant limited protective relief to preserve subject matter of arbitration - Respondent directed not to dispose of goats or plasma, to preserve records and confidential material, and to permit Petitioner's Livestock Supervisor at farm - Relief made subject to Petitioner's deposit of pending invoice amount, security amount and payment of maintenance expenses - Court Commissioner appointed for inspection and inventory - Parties directed to commence arbitration within statutory period.
Statutory provision(s): Arbitration and Conciliation Act, 1996 Section 9, Section 9(2), Section 17; Specific Relief Act, 1963 Sections 14 and 41(h); Micro, Small and Medium Enterprises Development Act, 2006 Sections 15 and 24
