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(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 |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Appeal Allowed |
Headnote | Arbitration and Conciliation Act, 1966; Sections 23, 24, 25, 28, 31 and34: Contract for supply of goods-Time is the essence of the contract-Delayin supply of goods-Contractor's liability to purchaser-Award-Denial ofcompensation-Held: when liability to pay compensation in lieu of damagesfor breach of any term of the contract by the other party is stipulated clearlyand unambiguously, and in the absence of evidence proving the compensationclaimed as unreasonable, arbitral tribunal could not ignore clear terms of theagreement to determine liability of the defaulting party-It is not necessaryfor the claimant to produce evidence proving damages/loss suffered by him-Burden is on the contending party to prove that claim is unreasonable-Sincecontending party agreed to pay damages, he cannot deny the same-Lossactually suffered by the purchaser need not be proved-Indian Contract Act,-Sections 73 and 74.Claim-Deduction of compensation/claim by the purchaser from the billof the contractor in lieu of damages for breach of agreement-Nature of-Held: such claim would be treated as disputed claim-Arbitrator to decideit-Under the facts and circumstances of the case, Arbitrator holding theclaim as undisputed on the ground that goods were received and bill was no/disputed-Such finding of the Arbitrator unjust and unreasonable. ·Award by the arbitral tribunal-lnterference with-Jurisdiction of theCourt-Ambit and scope of-Held: arbitral tribunal is empowered lo decidethe dispute referred to ii in accordance with the provisions of the Ac/-Procedural law provides relief against the right-Award passed incontravention of the provisions of substantive law/Act would be patently illegaland contrary to the basic concept of justice-Hence could be interfered withby the Court.Award in conflict with Public Policy of India-Power of the Court lointerfere with-Held: since the phrase 'Public Policy of India' is not definedunder the Act, the Court requires to give contextual meaning in the light ofthe principles underlying the Arbitralion Act/Contract Act/Constitutionalprovisions-It could either be construed in a narrower or broader sense-When award attains finality, jurisdiction of the Court to interfere with islimited on the ground of public policy-It could be given wider meaning by!he Court in exercise of its appellate/revisional jurisdiction-Award, in violationof statutory provisions, can not be termed to be in public interest-Henceagainst Public Policy of India and void-Interpretation of Statutes.omestic award and foreign award-Dist incl ion between-Discussed.Words & Phrases:'Arbitral Procedure', 'Substantive Law', 'Public Policy of India', 'ForceMajeure ', 'liquidated damages', 'patent illegality' and 'disputed claim'-Meaning of in the context of Arbitration and Conciliation Act, 1996. |
Judge | Hon'ble Mr. Justice M.B. Shah |
Neutral Citation | 2003 INSC 241 |
Petitioner | Oil & Natural Gas Corporation Ltd. |
Respondent | Saw Pipes Ltd. |
SCR | [2003] 3 S.C.R. 691 |
Judgement Date | 2003-04-17 |
Case Number | 7419 |
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