NDLI: M/s Nandan Biomatrix Limited Vs. D 1 Oils Limited

M/s Nandan Biomatrix Limited Vs. D 1 Oils Limited

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M/s Nandan Biomatrix Limited Vs. D 1 Oils Limited

Content Provider	Supreme Court of India
e-ISSN	30484839
Language	English
Access Restriction	NDLI
Subject Keyword	ARBITRATION AND CONCILIATION ACT
Content Type	Text
Resource Type	Law Judgement
Jurisdiction	India
Case Type	Arbitration Petition
Court	Supreme Court of India
Disposal Nature	Application Allowed
Headnote	ARBITRATION AND CONCILIATION ACT, 1996:ss. 2 (1) (f), 7, 11 (5) and (9) - International commercial c arbitration -Agreement providing for submission of dispute to "institutional arbitration" - Application for appointment of arbitrator - Resisted on the grounds that the expression "institutional arbitration" being vague, the arbitration clause was void and, because of the subsequent termination agreement, the claim stood extinguished - HELD: An arbitration agreement, as defined in s. 7, is not required to be in any particular form - Intention of parties for resolution of disputes through arbitration is relevant - In the instant case, there exists a valid arbitration agreement between the parties Applicant having denied genuineness of termination agreement, number of issues arise for determination and, as such, there exists a live claim between the parties - Disputes between the parties referred to Singapore International Arbitration Centre, which would nominate an arbitrator from its panel.The applicant was engaged in the business of seed cloning and production etc. It entered into a Supply Agreement with the respondent, Clause 15.1 whereof stipulated, "any dispute that arises between the parties shall be resolved by submitting to the institutional arbitration in India under the provisions of the Arbitration and Conciliation Act, 1996". Thereafter, a Joint Venture Agreement was entered into between the parties" on 30.9.2004. It was followed by a third agreement dated 26.11.2004 called "R & D Agreement". According to the applicant, it noticed only on 24.5.2005 the existence of a termination agreement dated 16.10.2004, which was a fabricated document. A complaint was registered in this 8 regard. Since dispute arose between the parties due to respondent's non-fulfilling the obligations under the Supply Agreement, the applicant approached the Court for appointment of arbitrator. The stand of the respondent was that the Supply Agreement did not provide for arbitration by reference to any particular institution nor did it provide for the rules framed by any particular institution and, therefore, the expression "institutional arbitration" used in Clause 15.1 of the Supply Agreement was vague and/or incapable of being made certain and, as such, was void. It was further submitted that the the Joint Venture Agreement, which superseded and replaced the Supply Agreement, did not contain any arbitration clause and, in any event, by virtue of the Deed of Termination dated 16.10.2004, which was signed by the Directors of the applicant, the claim, if any, of the applicant stood extinguished. The questions for consideration before the Court were: (1) "Whether there exists a valid arbitration agreement between the parties" and (2) "Whether there exists a live claim between the parties".
Judge	Honble Mr. Justice S.H. Kapadia
Neutral Citation	2009 INSC 153
Petitioner	M/s Nandan Biomatrix Limited
Respondent	D 1 Oils Limited
SCR	[2009] 3 S.C.R. 115
Judgement Date	2009-02-11
Case Number	6

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