Content Provider | Supreme Court of India |
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e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | Product sharing Contracts Arbitration and Conciliation Act 1996 |
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. 16 and 34 - Applicability of the Act - Arbitration petition u/s. 34 - Maintainability of - Parties-appellants entering into two Product Sharing Contracts (PSCs) with the Government of India, providing for exploration and production of petroleum - Disputes between parties regarding payments of royalties, cess, service tax and GAG audit report- Notice of arbitration - Constitution of arbitral tribunal - Under Article 33. 12 of PSCs, the venue of arbitration would be London - Amendment in the PSC, by agreement of the parties, Final Partial Consent Award by arbitral tribunal that juridical seat for arbitration would be London, England - 'Final Partial Award that appellants' claims are arbitrable - Petition u/s. 34 by respondent challenging Final Partial Award - Allowed by High Court holding that the arbitration petition was maintainable - On appeal, held: Petition u/s. 34 is riot maintainable - Applicability of Arbitration Act, 1996 to the arbitration agreement has been excluded - It cannot be said that even though the arbitration agreement would be governed by the laws of England and that juridical seat of arbitration would be in London, Part I of the Arbitration Act would stiff be applicable as the laws governing the substantive contract are Indian Laws - Upon a meaningful reading of the said Articles of the PSC, that the proper law of the contract is Indian Law; proper law of the arbitration agreement is the law of England - Applicability of Arbitration Act, 1996 has been ruled out by a conscious decision and agreement of the parties - In the event, final award is made against the respondent, the enforceability of the same in India, can be resisted on the ground of Public Policy- Remedy against the award will have to be sought in England, where the juridical seat is located - International Commercial Arbitration. Doctrines/Principles - Principle of separability - Held: Permits the parties to agree that law of one coμntry would govern to the substantive contract and laws of another country would apply to the arbitration agreement. |
Judge | Hon'ble Mr. Justice S.S. Nijjar |
Neutral Citation | 2014 INSC 410 |
Petitioner | Reliance Industries Limited & Anr. |
Respondent | Union Of India |
SCR | [2014] 6 S.C.R. 456 |
Judgement Date | 2014-05-28 |
Case Number | 5765 |
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