NDLI: M/s. Indian Farmers Fertilizer Co-operative Limited Vs. M/s Bhadra Products

Content Provider	Supreme Court of India
e-ISSN	30484839
Language	English
Access Restriction	NDLI
Subject Keyword	Jurisdiction Interim Arbitral Award Doctrines/Principles – Kompetenz Arbitration and Conciliation Act 1996
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 Referred Case 8 Referred Case 9
Case Type	Appeal
Court	Supreme Court of India
Disposal Nature	Appeal Allowed
Headnote	Arbitration and Conciliation Act, 1996 – ss. 2(c), 31(6), 32and 34 – Interim Arbitral Award – Whether an award delivered byan Arbitrator, which decides the issue of limitation, can be said tobe an interim award and whether such interim award can then beset aside u/s.34 of the Act – Held: Insofar as first question isconcerned, yes, the language of s.31(6) is advisedly wide in nature –A reading of the said sub-section makes it clear that the jurisdictionto make an interim arbitral award is left to the good sense of thearbitral tribunal and that it extends to “any matter” with respect towhich it may make a final arbitral award – The expression “matter”is wide in nature and subsumes issues at which the parties are indispute – It is clear, therefore, that any point of dispute between theparties which has to be answered by the arbitral tribunal can bethe subject matter of interim arbitral award – Insofar as secondquestion is concerned, yes, such an “interim award” is within themeaning of s.2(1)(c) of the Act and being subsumed within theexpression “arbitral award”, therefore, can be challenged u/s.34of the Act – English Arbitration Act, 1996 – s. 47.Arbitration and Conciliation Act, 1996 – s.16 – Appellantissued a tender enquiry for supply of Defoamers – Respondentsuccessfully submitted its bid, pursuant to which respondent suppliedthe Defoamers – Respondent demanded payment – However,appellant took the stand that nothing was due and payable torespondent – Since, dispute arose between the parties, respondentinvoked arbitration – Issue of limitation was taken first by theArbitrator and vide an award the said issue was decided in favourof respondent-claimant stating that their claim had not become timebarred – Whether a decision on a point of limitation would go tojurisdiction and, therefore, be covered by s.16 of the Act, in whichcase all other issues have to be decided first, and it is only after such issues are decided that such an award can be challenged u/s.34 of the Act – Held: In the instant case, the award passed by theArbitrator is an interim award, which being an arbitral award, canbe challenged separately and independently u/s.34 of the Act –Such an award, which does not relate to the arbitral tribunal’s ownjurisdiction u/s.16, does not have to follow the drill of s.16(5) and(6) of the Act – In the light of this, Parliament may consider amendings.34 of the Act so as to consolidate all interim awards together withthe final arbitral award, so that one challenge u/s. 34 can be madeafter delivery of the final arbitral award – Piecemeal challengeslike piecemeal awards lead to unnecessary delay and additionalexpense.Words and Phrases – “Jurisdiction” – The sense of term“jurisdiction” used in s.16 of the Arbitration and Conciliation Act,1996 – Discussed.Doctrines/Principles – Kompetenz - kompetenz principle –Discussed – English Arbitration Act, 1996 – ss. 30, 31 – UNCITRALModel Law – Art. 16.
Judge	Hon'ble Mr. Justice R.F. Nariman
Neutral Citation	2018 INSC 53
Petitioner	M/s. Indian Farmers Fertilizer Co-operative Limited
Respondent	M/s Bhadra Products
SCR	[2018] 1 S.C.R. 848
Judgement Date	2018-01-23
Case Number	824

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