NDLI: Petroleum Corporation Limited Vs. Go Airlines (india) Limited

Content Provider	Supreme Court of India
e-ISSN	30484839
Language	English
Access Restriction	NDLI
Subject Keyword	CENVAT Credit Rules 37 Arbitration and Conciliation Act ss.16 2004 Counter claims 1996
Content Type	Text
Resource Type	Law Judgement
Jurisdiction	India
Act(s) Referred	Arbitration and Conciliation Act, 1996 (26 of 1996)
Case(s) Referred	Referred Case 0
Case Type	Appeal
Court	Supreme Court of India
Disposal Nature	Appeal Dismissed
Headnote	Arbitration and Conciliation Act, 1996 – ss.16, 37 – Counter claims raised by the respondent, whether beyond the scope of reference to arbitration – Under the Agreement dtd. 01.01.07 for Aviation Fuel Supply, the appellant was to supply aviation fuel to the respondent – Initially, agreement was for the period from 01.01.07 to 31.03.09– Second Aviation Fuel Supply agreement dtd. 01.04.09 was from 01.04.09 to 31.03.11 – Dispute arose between the parties when the appellant raised claim for interest for the delayed payments of the fuel supplied during the period from 01.04.09 to 31.03.11 – Respondent did not accept any amount payable towards interest –Appellant vide notice dtd. 25.03.10 invoked arbitration clause – Agreed by the respondent vide letter dtd. 27.04.10 – Appellant raised claim for Rs.1,95,21,032/- with interest @ 18% p.a. from the date of presentation of the claim till payment and/or realization – Denying the claims, the respondent also raised two counter claims and sought award directing the appellant to issue CENVAT invoices in its favour for the aviation fuel supplied under the agreement – Appellant also filed application u/s.16 – Allowed by the Arbitrator– High Court allowed the appeal by the respondent – Held: Merely because the respondent did not specify the nature of claims against BPCL in the letter dtd. 27.04.10, may not be a ground to reject the counter claim of CENVAT invoices at the threshold – Questions whether the issue regarding CENVAT invoices was outside the terms of agreement or whether CENVAT invoices relates to the agreement dtd. 01.01.07 and 01.04.09; whether it is arbitrable and falls beyond the scope of reference to arbitration and such other related questions, are to be determined only during the enquiry – After enquiry, the Arbitrator might reject the counter claim for CENVAT invoices as not arbitrable and the counter claim beyond the scope of reference to arbitration, but to reject the counter claim at the threshold on the ground that the Arbitrator has no jurisdiction would not be proper – High Court rightly set aside the order of the Arbitrator – Judgment of the High Court, affirmed – However, observations of the High Court in the impugned order in para no.(10) as to the availability of CENVAT credit allegedly specified in the 2004 Rules may not be considered as expression of opinion on the merits of the matter – Arbitrator to proceed with the matter on its own merits and in accordance with law – CENVAT Credit Rules, 2004.
Judge	Hon'ble Ms. Justice R. Banumathi
Neutral Citation	2019 INSC 1183
Petitioner	Petroleum Corporation Limited
Respondent	Go Airlines (india) Limited
SCR	[2019] 13 S.C.R. 1044
Judgement Date	2019-10-23
Case Number	8227

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