Content Provider | Supreme Court of India |
---|---|
e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | 1996 - s. 34 Arbitration and Conciliation Act |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Others |
Headnote | Arbitration and Conciliation Act, 1996 - s. 34 - Arbitralaward - Joint Venture between two companies for incorporatingJoint Venture Company wherein entire shareholding of JVC to beheld between two collaborating companies equally - In event ofdefault, non-defaulting shareholder to purchase the defaultingshareholders shares at book value - Appellant company declaredbankrupt - Jn vocation of arbitration clause -Award passed in favourof non-defaulting company, directing the defaulting company totransfer their 50% shares of JVC to non-defaulting company atbook value - Rounds of litigation in US and Indian Courts -Challenge to foreign arbitral award in India u/s. 34 - Subsequentthereto, disclosure by chairman and founder of non-defaultingcompany that balance sheet of the company had been manipulated,inflating the profit - Said additional facts brought on record -Thereafter, as regards application by defaulting company u/s. 34,trial court set aside the award since it violates the provisions ofFEMA Act and is against the public policy - However, High Courtheld that award is not against the public policy and restored theaward - Whether the award impugned in s. 34 proceedings isvitiated on account of fraud, misrepresentation and suppression ofmaterial facts played by the chairman and founder ofnon-defaulting company in the affairs of the company - Held: PerSapre, !.-Award was obtained by misrepresentation andsuppression of material facts having bearing over the proceedings,thus, arbitral proceedings including the award being in violationof public policy of India u!s. 34(2)(b)(ii) read with Explanation l(i),(ii) and (iii), not legally sustainable and set aside - Per Chelameswar,I-Except mechanically repeating that the non-disclosure orconcealment of the material facts before the arbitrator is m1 act offraud, no discussion as to how the concealed facts are materialfacts whose concealment resulted in inducing the making of the award by fraud or affected by fraud, thus, restoration of the awardupheld - In view of difference of opinion, matter referred to largerBench. |
Judge | Hon'ble Mr. Justice Abhay Manohar Sapre |
Neutral Citation | 2017 INSC 1069 |
Petitioner | Venture Global Engineering Llc |
Respondent | Tech Mahindra Ltd. & Another Etc. |
SCR | [2017] 12 S.C.R. 259 |
Judgement Date | 2017-11-01 |
Case Number | 17753- 17755 |
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