Content Provider | Supreme Court of India |
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e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | 57 and 58. 48 5 49 Arbitration and Conciliation Act 17 9 1996: Part-I and Part-II Sections 2 |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Appeal Dismissed |
Headnote | Arbitration and Conciliation Act, 1996: Part-I and Part-II Sections 2, 5, 9, 17, 48, 49, 57 and 58. International Chambers of Commerce Rules-Article 23. Arbitration-Jurisdiction of Courts in India-Exercise of-Held, may not be ousted unless explicitly expressed by the statutory provisions or by inferential conclusion. Provisions of Part-I-Applicability to arbitration proceedings and International Commercial Arbitration in India. Deviation from provisions-Extent of-Parties can deviate from the provisions to the extent permitted as per Part-I of the Act-For International Commercial Arbitration parties by an agreement may exclude all or any provisions of the Act. Application for interim measure-Maintainability of-Such Application can be submitted to Courts in India irrespective of place of arbitration but before expiry of time of execution of the Award.Interim Award-Interim Order-Distinction between-Though Arbitral Tribunal could pass an interim award under Part-II of the Act, yet an interim order passed by it would not be enforceable in India.Legislative Intent--Provisions of Part-1 is compulsorily applicable to arbitration including an International Commercial Arbitration in India-Parties by an agreement can declare that Part-1 or any of its provisions will not apply to arbitration-UNCITRAL Model Laws Article 1 (2). Interpretation of Statutes: Statutory provisions-Possibility of more than one interpretation-Court to choose that interpretation which represents the true intention of the legislature-In the unforeseen situations which emerge after enactment of statute, Court could expound but should not try to legislate. Appellant entered into a contract with 1st Respondent. Arbitration clause in the Contract provided for arbitration as per rules of the International Chambers of Commerce (ICC). 1st Respondent requested for arbitration. Parties agreed for the same and ICC appointed a sole arbitrator. In the meanwhile, 1st Respondent filed an application before the Distt. Judge in India and prayed for an order of injunction restraining the opposite parties from alienating, transferring, creating third party right, disposing of, dealing with and/or selling their business assets and properties. Appellant raised plea of maintainability of such application on the ground that Part-I of Arbitration and Conciliation Act would not apply where place of arbitration is not in India. On dismissal of the application, Appellant filed a Writ Petition which was also dismissed by the High Court. Hence the present appeal. It was contended for the appellant that Part-I of the Act only applies to arbitrations where place of arbitration is in India; and that Legislature did not want Part-I to apply to arbitrations which take place outside India; and that Part-II of the Act applies to foreign awards; and that 'every arbitration' in Section 2(2) and 'all arbitration' in Section 2(5) of the Act must necessarily refer only to arbitrations which take place in India; and that if Part-I applies to all arbitrations then Section 2(2) would become redundant and/or otiose; and that the Legislature purposely omitted to make any provision for interim measures either by the Court or by Arbitral Tribunal; and that a number of High Courts have held Part-I of the Act would not apply to arbitrations which take place outside India. It was contended for the Respondents that a conjoint reading of the provisions shows that Part-I applies to all arbitrations unless the parties by their agreement excludes its provisions, Part-I would also apply to all International Commercial Arbitrations including those which take place outside India. |
Judge | Hon'ble Mr. Justice S.N. Variava |
Neutral Citation | 2002 INSC 138 |
Petitioner | Bhatia International |
Respondent | Bulk Trading S.a. And Anr. |
SCR | [2002] 2 S.C.R. 411 |
Judgement Date | 2002-03-13 |
Case Number | 6527 |
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