NDLI: M/s Larsen and Toubro Limited Scomi Engineering Bhd Vs. Mumbai Metropolitan Region Development Authority

Content Provider	Supreme Court of India
e-ISSN	30484839
Language	English
Access Restriction	NDLI
Subject Keyword	1996 – ss. 2(1)(f)(ii) Arbitration and Conciliation Act
Content Type	Text
Resource Type	Law Judgement
Jurisdiction	India
Case(s) Referred	Referred Case 0
Case Type	Arbitration Petition
Court	Supreme Court of India
Disposal Nature	Others
Headnote	Arbitration and Conciliation Act, 1996 – ss. 2(1)(f)(ii),2(1)(f)(iii) and 11 – International Commercial Arbitration – Contractfor development of a Monorail system, between MumbaiMetropolitan Regional Development Authority (MMRDA)-respondent and a Consortium-petitioner (comprising an Indiancompany and a Malaysian company) – Dispute arose between theparties – Consortium made various interim claims and filed petitionu/s.11 of the Act – According to Consortium, since one of the partiesto the Arbitration Agreement, was a body corporate, incorporatedin a country other than India so it would attract s.2(1)(f)(ii) of theAct and relied upon their status (i.e. an Indian company and aMalaysian company) as independent entities – Propriety of – Held:In another proceeding between the same parties arising out of theself-same agreement, the High Court by order dated 20.10.2016had upheld the order of the Arbitrator that the particular claim thatwas made in that case could be made only as a Consortium and notas two entities separately and the said judgment was final inter-parties as no appeal was preferred – Thus, it is not open for thepetitioner to rely upon their status as independent entities – Thisbeing the case, the un-incorporated “association” referred to ins.2(1)(f)(iii) is attracted on facts of the case and not s.2(1)(f)(ii) asthe Malaysian body could not be referred to as an independententity following the judgment of the High Court – Further, the Indiancompany was the lead partner and the Supervisory Board constitutedunder the Consortium agreement made it clear that the lead partnerhad the determining voice in that, as it appointed the Chairman ofthe said Board and the fact that the Consortium’s office was inWadala, Mumbai and also that the lead member led the arbitrationproceedings – This all pointed to the fact that the centralmanagement and control of the Consortium appeared to be exercisedin India and not in any foreign nation – There is no “internationalcommercial arbitration” as defined u/s.2(1)(f) of the Act – Thus,petition filed u/s.11 of the Act dismissed.Arbitration and Conciliation Act, 1996 – s.2(1)(f)(iii) –discussed.
Judge	Hon'ble Mr. Justice R.F. Nariman
Neutral Citation	2018 INSC 922
Petitioner	M/s Larsen And Toubro Limited Scomi Engineering Bhd
Respondent	Mumbai Metropolitan Region Development Authority
SCR	[2018] 14 S.C.R. 22
Judgement Date	2018-10-03
Case Number	28

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