Content Provider | Supreme Court of India |
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e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | 1996: Arbitration and Conciliation Act |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Appeal Allowed |
Headnote | Arbitration and Conciliation Act, 1996:s. 5 - Arbitration agreement - Extent of judicial review - Contract for supply of raw jute - Dispute between parties regarding liability to pay carrying cost and quantum thereof - High Court though held that there existed arbitration clause, however, determined the question of liability to pay carrying charges, and referred the quantum to be decided in arbitration - HELD: Power of judicial review vested in the superior courts undoubtedly has wide amplitude but same should not be exercised when there exists an arbitration clause - Division Bench of High Court having opined that dispute between the parties was covered under the arbitration clause, it should not have proceeded to determine a part of dispute itself - As disputed questions of fact and law are required to be determined by arbitrator, all disputes between parties are, in exercise of power under Article 142 of the Constitution, directed to be referred to arbitration in terms of clause 9.0 of the Sale Order and as indicated in the judgment - Constitution of India, 1950 - Article 142.The Jute Commissioner, pursuant to Jute and Textile Control Order, 2000 made by Government of India in exercise of powers under s.3 of the Essential Commodities Act, 1955, issued Production Control Orders to various jute mills including the appellant Company directing them to manufacture 'B' Twill Gunny Bags of specified quality upon compulsory purchase of raw jute from the Corporation. The Commissioner fixed the price of the Gunny Bags to be supplied by the appellant-Company as per the Schedule. Thereafter a contract for sale of raw jute was entered into between the appellant-Company and the respondent Jute Corporation of India Ltd. The appellant did not purchase raw jute from the Corporation alleging the same as of inferior quality, and filed a writ petition before the High Court, inter alia, challenging the power of the Commissioner to order compulsory purchase of raw jute, and prayed for a direction to him to desist from forcing the company to supply the gunny bags at the price fixed by him. However, before the single Judge the appellant made an offer to clear the backlog. An interim order was passed. The respondent issued a letter to the appellant to make the payment along with the carrying cost, which was objected to by the appellant. The matter was taken to the Division Bench, which upheld the liability of the respondent to pay the carrying charges and directed the parties to settle the quantum through arbitration. Aggrieved, the Company filed the instant appeal. |
Judge | Hon'ble Mr. Justice S.B. Sinha |
Neutral Citation | 2007 INSC 1074 |
Petitioner | The Empire Jute Co. Ltd. & Ors. |
Respondent | The Jute Corporation Of India Ltd. And Anr. |
SCR | [2007] 11 S.C.R. 388 |
Judgement Date | 2007-10-12 |
Case Number | 4877 |
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