Content Provider | Supreme Court of India |
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e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | Arbitration and Conciliation Act 1996 |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Act(s) Referred | Arbitration and Conciliation Act, 1996 (26 of 1996) |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Appeal Allowed |
Headnote | Arbitration and Conciliation Act, 1996 - s. 11 -Appointment of arbitrator under - Termination of contract alleging non-completion of work within the stipulated period. Contractor raising claims against the Company and invoking arbitration agreement - Appointment of arbitrator. Counter-claim raised by the company, for the extra cost in getting the work completed through the alternative agency . Passing of award - However, rejection of the counter claim . Petition u/s. 11 for appointment of an arbitrator to decide the said counter claim - Dismissed by the Designate of the Chief Justice of the High Court on the ground that the alternative agency having completed its work much before the earlier arbitration proceedings came to an end, the claim in regard to the actual cost ought to have been crystallised and claimed in the first arbitration itself - Thus, the application was held to be misconceived, barred by res judicata, and mala fide .Held: Not justified - Designate committed a jurisdictional error in dismissing the application u/s. 11, on the ground that the claim for extra cost was barred by res judicata and by limitation - Chief Justice or his designate cannot examine the tenability of the claim, in particular whether the claim is barred by res judicata, while considering an application u/s. 11 .Such an issue would be examined by the arbitral tribunal . A decision on res judicata requires consideration of the pleadings as also the claims and the award in the first round of arbitration, in juxtaposition with the pleadings and the issues/claims in the second arbitration - If the cause of action arose after the completion of pleadings and commencement of hearing in the first round of arbitration, the company can raise a separate claim by initiating a second arbitration .Claim for reimbursement of the extra cost for getting the work completed, is a claim for damages which is yet to be adjudicated by an adjudicating forum - Thus, the company cannot adjust the amount due by it under the award, against a mere claim for damages made by it against the contractor. Application u/s. 11 is allowed, Res judicata. |
Judge | Hon'ble Mr. Justice R.V. Raveendran |
Neutral Citation | 2011 INSC 99 |
Petitioner | Indian Oil Corporation Ltd. |
Respondent | M/s. Sps Engineering Ltd. |
SCR | [2011] 2 S.C.R. 512 |
Judgement Date | 2011-02-03 |
Case Number | 1282 |
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