Court Upholds National Security in Arbitration over Naval Base Development

The Delhi High Court ruled that information classified as 'Top Secret' related to national defense cannot be disclosed in arbitration proceedings, even in sealed cover. This decision came amid a commercial dispute involving the Defence Ministry's Project Varsha and a firm over the development of a greenfield naval base.

The Delhi High Court has ruled that 'Top Secret' information linked to national defense is inadmissible in arbitration proceedings, even if presented in a sealed cover. The court emphasized that issues of national security should be left to the discretion of the Union of India.

The judgment relieved the director general of the Defence Ministry's Project Varsha from the obligation to produce sensitive documents in an arbitration case stemming from a commercial dispute with a firm related to the construction of a greenfield naval base on the eastern coast.

The dispute originated from a 2017 contract between the Defence Ministry and Navayuga-Van Oord JV. The court stressed that while fairness is crucial, national security cannot be compromised.

(With inputs from agencies.)