NDLI: National Agricultural Cooperative Marketing Federation of India Vs. Alimenta S.a.

Content Provider	Supreme Court of India
e-ISSN	30484839
Language	English
Access Restriction	NDLI
Subject Keyword	Foreign Awards Arbitration
Content Type	Text
Resource Type	Law Judgement
Jurisdiction	India
Act(s) Referred	Limitation Act, 1963 (36 of 1963) Indian Contract Act, 1872 (9 of 1872) Foreign Awards (recognition and Enforcement) Act, 1961 (45 of 1961)
Case(s) Referred	Referred Case 0 Referred Case 1 Referred Case 2 Referred Case 3 Referred Case 4 Referred Case 5 Referred Case 6 Referred Case 7 Referred Case 8 Referred Case 9 Referred Case 10 Referred Case 11 Referred Case 12 Referred Case 13
Case Type	Appeal
Court	Supreme Court of India
Disposal Nature	Appeal Allowed
Headnote	Foreign Awards (Recognition and Enforcement) Act, 1961:s.7 – Agreement between NAFED and Alimenta S.A. for export ofgroundnut (commodity) for the season 1979-80 – Agreementcontained arbitration clause – Terms and conditions were as perFOSFA 20 contract, a standard form of contract – NAFED was acanalizing agency for the Government of India for export ofcommodity – Clause 14 in the agreement was that in case ofprohibition of export by executive order or by law, the agreementwould be treated as cancelled – NAFED could not export the entirequantity due to damage caused to crop by cyclone – Governmentdid not grant permission to NAFED to carry forward previous year’scommitment to subsequent year – Because of refusal by Government,it was not possible for NAFED to supply commodity to AlimentaS.A. – Unfulfilled part was required to be cancelled – Arbitration –Foreign award ordering NAFED to pay damages – Enforcementchallenged – Held: It is provided in s.7(1)(b)(ii) that if the courtdealing with the case is satisfied that the enforcement of the awardwill be contrary to public policy, the foreign award may not beenforced – The impugned award is ex facie illegal, and incontravention of fundamental law, against the public policy asenvisaged in s.7 of the Act of 1961 – No export without permissionof the Government was permissible and without the consent of theGovernment, quota could not have been forwarded to next season– On the happening of contingency agreed to by the parties in Clause14 of the FOSFA Agreement, the contract was renderedunenforceable under s.32 of the Contract Act – As such the NAFEDcannot be held liable to pay damages under foreign award.Contract Act, 1872 – s.32 – Applicability of – Held: s.32 ofthe Contract Act applies in case the agreement itself provides forcontingencies upon happening of which contract cannot be carriedout and provide the consequences – In this case, s.32 of the ContractAct is attracted and not the provisions of s.56 – It was an agreementto do an act impossible in itself without permission, and that isdeclared void by s.32 – Foreign Awards (Recognition andEnforcement) Act, 1961.
Judge	Hon'ble Mr. Justice Arun Mishra
Neutral Citation	2020 INSC 345
Petitioner	National Agricultural Cooperative Marketing Federation Of India
Respondent	Alimenta S.a.
SCR	[2020] 7 S.C.R. 789
Judgement Date	2020-04-22
Case Number	667

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National Agricultural Cooperative Marketing Federation of India Vs. Alimenta S.a.

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