Content Provider | Supreme Court of India |
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e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | Government Corporations: Government contracts |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Appeal Allowed |
Headnote | Government Corporations: Government contracts — Redressal of commercial disputes between public sector enterprises inter se as well as between the public sector enterprises and the Government departments ~ Procedure for settlement of disputes — In the instant case, dispute arose between two government owned corporations — Referred to resolution in terms of the ‘permanent in-house administrative machinery’ set up by the Governnient — Arbitral award — Aggrieved by the award, appellant filed suit — Defendant claimed that suit was barred in view of the existence of specially prescribed procedure for resolving disputes and in the light of said procedure, neither party to the dispute was entitled to take recourse to proceedings in any court without permission of the Committee on Disputes (COD) — High Court rejected the plaint accepting the plea of defendant — On appeal, held: In ONGC case, it was held that permission of COD was necessary to proceed with the suit — However, COD stood dissolved and the orders directing constitution of COD is reversed and, therefore, requirement of clearance of COD should not be insisted upon at this stage — In view thereof, there is no question of either obtaining or insisting upon any clearance from the same — Therefore, orders passed by High Court rejecting the plaint on the ground that the same was not preceded by permission from COD is unsustainable — Right of the appellant'to demand such an adjudication cannot be denied simply because it happens to be a Government owned company for even when the appellant is a government conipany, it has its legal character as an entity separate from the Governinent — Just because it had resorted to the permanent procedure or taken part in the proceedings there can be no estoppel against its seeking redress in accordance with law ~ Matter referred to sole arbitrator for adjudication of all outstanding disputes between the two corporations. |
Judge | Honble Mr. Justice T.S. Thakur |
Neutral Citation | 2016 INSC 518 |
Petitioner | M/s. Northern Coalfield Ltd. |
Respondent | Heavy Engineering Corp. Ltd. & Anr. |
SCR | [2016] 5 S.C.R. 69 |
Judgement Date | 2016-07-13 |
Case Number | 6296 |
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