Content Provider | Supreme Court of India |
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e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | Arbitration-Arbitration agreement |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Appeal Dismissed |
Headnote | Arbitration - Arbitration agreement - Applicability - Time Charter Party agreement - For letting on hire vessels - To Oil Corporation - Disputes arose between parties - After expiry of the agreement-Reference of dispute to Arbitral Tribunal - Tribunal refused to adjudicate on the ground that the arbitration clause could not be invoked after expiry of the agreement - High Court set aside the award of the Tribunal - On appeal, held: Arbitration clause contained in the agreement could be invoked even after expiry of the agreement - Notwithstanding the expiry of the time fixed for the agreement, the same did not get extinguished for the purpose of determination of the disputes arising thereunder.Contract - Acceptance of offer - Manner of - Held: General rule that offer is not accepted by mere silence does not mean that it has to be given in so many words - In certain circumstances, offeree's silence coupled with his conduct taking form of positive act, may constitute an acceptance sub silentio. Doctrines/Principles - Principle of Sub Silentio - Applicability of.An agreement called 'Time Charter Party' was entered into between the appellant and the respondent on May 6, 1997 for letting on hire, vessels by the respondent to the appellant. The agreement was mutually extended till August 31, 1998. Thereafter tender was floated inviting fresh bids. Some bidders filed Writ Petition against decision of Indian Oil Corporation (IOC) to invite revised price bids after opening of the sealed tenders. During pend ency of finalization of new Charter Party, respondent informed the appellant that they were agreeable to apply new rates, for use of the vessel from July 1, 1998, provided all its nine vessels were used. By their letter dated November 5, 1998, they also protested against revision of the rates by the appellant downward for the vessel not being considered under the new bid. There was no response by the appellant to the protest. The respondent by their letter dated January 4, 1999, expressed their willingness to sign the new Charter Party based on the existing terms and conditions indicating that usual practice is that pending finalization of the new Charter Party, the existing terms and conditions of Charter Party continued to apply. It was also suggested that agreement could be signed for the period from September 1, 1998 until the matter was finally decided on the existing terms and conditions. There was no response by the appellant, to this letter also. There was no further exchange of correspondence between the parties, during the year. The Writ Petition was disposed of on August 20, 1999. Appellant continued to use the vessel under the Charter Party May 6, 1997 till August 31, 1999. IOC informed the respondent about the evaluation of the tenders as per the High Court order. Respondent accepted the proposed rates except for two vessels. They requested for revision of rates in respect of these two vessels, but the same was turned down. Pursuant to some notices and some subsequent correspondence, an Arbitral Tribunal was constituted.Arbitral Tribunal came to the conclusion that the Tribunal had no jurisdiction to decide the reference because the Charter Party dated May 6, 1997, arbitration clause whereof was invoked, was valid only upto August 31, 1998 and the dispute related to the period subsequent to August 31, 1998; and that Charter Party dated May 6, 1998 was superseded by fresh agreement according to which the Charter hire rates were to be determined by the Oil Co-ordination Committee. Single Judge of High Court set aside the Award holding that the Tribunal had the jurisdiction to adjudicate the dispute; and that Tribunal failed to consider clauses 4.1 and 23 of Charter Party dated May 6, 1997, according to which Charter party was to come to an end only on re-delivery of vessel and admittedly re-delivery did not take place after August 31, 1998 and thus it continued to be hired in terms of Charter Party dated May 6, 1997. Hence the present appeal.The question for determination was whether on expiry of the extended period of charter hire on August 31, 1998, Charter Party dated May 6, 1997 come to an end and the arbitration agreement perished with it. |
Judge | Hon'ble Mr. Justice D.K. Jain |
Neutral Citation | 2007 INSC 1048 |
Petitioner | Bharat Petroleum Corporation Ltd. |
Respondent | The Great Eastern Shipping Co. Ltd. |
SCR | [2007] 11 S.C.R. 117 |
Judgement Date | 2007-10-12 |
Case Number | 4829 |
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