The Court relied on NTPC Ltd. v. SPML Infra Ltd., (2023) 9 SCC 385, wherein the principle 'eye of the needle' was propounded. The Court reiterated that inquiry by the Courts at a pre-referral stage under Section 11(6) of the Act is very narrow and is confined to the preliminary inquiry about the existence and validity of an arbitration agreement and the applicant's privity to the agreement. For inquiry regarding the non-arbitrability of the dispute, at the referral stage, the Court said that it is settled that such an inquiry is an exception to the general rule and the principle that the Arbitral Tribunal is the preferred first authority to determine and decide all questions of non-arbitrability. The Court also reiterated that the referral Court may reject claims which are manifestly and ex-facie non-arbitrable. The Court said that it can be examined in the inquiry, whether the assertion of arbitrability is bona fide or not.