NDLI: Indian Oil Corporation Limited Vs. Ncc Limited

Content Provider	Supreme Court of India
e-ISSN	30484839
Language	English
Access Restriction	NDLI
Subject Keyword	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 Referred Case 10 Referred Case 11 Referred Case 12 Referred Case 13
Case Type	Appeal
Court	Supreme Court of India
Disposal Nature	Appeal Disposed Off
Headnote	Arbitration and Conciliation Act, 1996 – ss. 11(6), 11(6-A), 16 – High Court in exercise of powers u/s. 11(6) appointed the Arbitrators to adjudicate and resolve the disputes between the parties arising out of the respective contracts – Correctness of – Held: The issue w.r.t ‘accord and satisfaction’ of claims is seriously disputed and is debatable – Whether, in view of the acceptance of Rs. 4,53,04,021/- by the respondent which was released by petitioner on the offer/letter made by the respondent there is an instance of ‘accord and satisfaction’ of the claims is a good and reasonably arguable case – It cannot be said to be an open and shut case – Therefore, even when it is observed and held that such an aspect with regard to ‘accord and satisfaction’ of the claims may/can be considered by the Court at the stage of deciding s. 11 application, it is always advisable and appropriate that in cases of debatable and disputable facts, good reasonably arguable case, the same should be left to the Arbitral Tribunal – Therefore, High Court committed no error in observing that aspects with regard to ‘accord and satisfaction’ of the claims or where there is a serious dispute will have to be left to the Arbitral Tribunal – However, at the same time, the conclusion arrived at by the High Court that after the insertion of Sub-Section (6-A) in s. 11 scope of inquiry by the Court in petition is confined only to ascertain as to whether or not a binding arbitration agreement exists qua the parties before it, which is relatable to the disputes at hand is not agreed with – Though, the Arbitral Tribunal may have jurisdiction and authority to decide the disputes including the question of jurisdiction and non-arbitrability, the same can also be considered by the Court at the stage of deciding s. 11 application, if the facts are very clear and glaring and in view of the specific clauses in the agreement binding between the parties, whether the dispute is non--arbitrable and/or it falls within the excepted clause – Even at the stage of deciding s. 11 application, the Court may prima facie consider even the aspect with regard to ‘accord and satisfaction’ of the claims – In Civil Appeal No. 341/ 2022, the Arbitrator shall first decide the aspect with regard to ‘accord and satisfaction’ of the claims and arbitrability of the disputes with regard to such claims by deciding an application u/ s. 16 which is reportedly pending – Arbitrator shall first decide the jurisdiction of the Arbitral Tribunal and the arbitrability of the claims – In Civil Appeal No. 342/2022, impugned judgment and order passed by the High Court referring the dispute between the parties to arbitration and appointing the Arbitrator is set aside – Similarly, in Civil Appeal No. 343/2022, the impugned judgments and orders are set aside – Further, in Civil Appeal No. 344/2022, impugned judgment and order passed by the High Court is modified – Only one claim of the respondent which is declared by the General Manager as a Notified Claim shall have to be referred to arbitration and the Arbitrator shall adjudicate only that claim which is declared by the General Manager as a Notified Claim and the Arbitral Tribunal shall not have any jurisdiction to adjudicate on any other claims which as such are not declared as Notified Claims.
Judge	Hon'ble Mr. Justice M.R. Shah
Neutral Citation	2022 INSC 735
Petitioner	Indian Oil Corporation Limited
Respondent	Ncc Limited
SCR	[2022] 13 S.C.R. 660
Judgement Date	2022-07-20
Case Number	341

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