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 ss.44 and 45 - Foreign seated arbitration |
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:ss.44 and 45 - Foreign seated arbitration - Jurisdiction of High Court to pass an order of injunction restraining a foreign seated international arbitration at Singapore between the parties - Plea of respondent that the main agreement which contains the arbitration agreement is void because of fraud and misrepresentation by the appellant and therefore court cannot refer the parties to arbitration - Held: s.45 of the Act postulates that even where request of arbitration is made by a party, it will not refer the parties to arbitration, if it finds that the agreement is null and void, inoperative or incapable of being performed - The words "inoperative or incapable of being performed" in s.45 have been taken from Article II (3) of the New York Convention - Jn the case of such arbitrations covered by the New York Convention, the Court can decline to make a reference of a dispute covered by the arbitration agreement only if it comes to conclusion that the arbitration agreement is null and void, inoperative or incapable of being performed, and not on the ground that allegations of fraud or misrepresentation have to be inquired into while deciding the disputes between the parties - In the instant case, the allegation of fraudulent misrepresentation in the main agreement did not impact the validity of the arbitration agreement which was separable from the rest of the contract - Therefore, applying principle of separability parties were wrongly refused to refer arbitration on the ground that arbitration agreement was also void along with main agreement - Principle of separability.Arbitration restricting the right of the parties to move the courts for appropriate relief and also barring the right to trial by a jury - Whether void for being opposed to public policy as provided in s.23 of the Indian Contract Act, 1872 and void for being an agreement in restraint of the legal proceedings in view of s.28 of the said Act - Held: Parliament has made the Arbitration and Conciliation Act, 1996 providing domestic arbitration and international arbitration as a mode of resolution of disputes between the parties and Exception 1 to s. 28 of the Contract Act, 1872 clearly states that s.28 shall not render illegal a contract, by which two or more persons agree that any dispute which may arise between them in respect of any subject or class of subjects shall be referred to arbitration and that only the amount awarded in such arbitration shall be recoverable in respect of the dispute so referred - The right to jury trial is not available Under Indian laws - In the instant case, the finding of the Division Bench of the High Court that arbitration clause of the Facilitation Deed is opposed to public policy and is void u/s.23 and 28 of the Contract Act, 1872 is clearly erroneous - Contract Act, 1872 - ss.23, 28.Doctrines/Principles: Principle of Comity of Courts - Applicability of - Plea of appellant that. on principle of comity of courts, the Bombay High Court should have refused to interfere in the matter and should have allowed the parties to resolve their dispute through ICC arbitration subject to the jurisdiction of the Singapore Courts in accordance with the arbitration clause of the Facilitation Deed - Held: Not applicable in the instant case, no decision of a court of foreign country or no law of a foreign country was cited on behalf of the appellant to contend that the courts in India out of deference to such decision of the foreign court or foreign Jaw must not assume jurisdiction to restrain arbitration proceedings at Singapore - On the other hand, u/s. 9 of the CPC, the courts in India have jurisdiction to try all suits of a civil nature excepting suits of which cognizance is either expressly or impliedly barred - Thus, the appropriate civil court in India has jurisdiction to entertain the suit and pass appropriate orders in the suit by virtue of s.9 of the CPC - Code of Civil Procedure, 1908 - s. 9. |
Judge | Hon'ble Mr. Justice A.K. Patnaik |
Neutral Citation | 2014 INSC 50 |
Petitioner | World Sport Group (mauritius) Ltd. |
Respondent | Msm Satellite (singapore) Pte. Ltd. |
SCR | [2014] 1 S.C.R. 796 |
Judgement Date | 2014-12-24 |
Case Number | 895 |
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