AGARWAL ENGINEERING CO. versus TECHNOIMPEX HUNGARIAN MACHINE INDUSTRIES

AGARWAL ENGINEERING CO. versus TECHNOIMPEX HUNGARIAN MACHINE INDUSTRIES

Annexures B1 and B2 are self-contained contracts for the specific sale of EK 25 and EK 13A machinery; the arbitration clause in those contracts (clause 8) governs any disputes related to those sales. Annexure C is a later and separate agency agreement for future transactions and expressly does not have retroactive effect over earlier contracts. Therefore, the arbitration clause in B1 and B2 applies to the present dispute.

Parties
Appellant: Agarwal Engineering Co.; Respondent: Technoimpex Hungarian Machine Industries
Jurisdiction
India
Judgment Date
18 July 1977
Procedural Posture
Civil Appeal / Appeal by Special Leave From the Judgment and Order Dated 3 2 1976 of the Calcutta High Court in Award Matter No. 109 of 1975.
Outcome
Appeal allowed
Legal Topics
Arbitration Clauses in Multiple Contracts, Novation of Contract, Agency Agreements, Foreign Trade Contracts
Arbitration Contract Law Commercial Law Arbitration Clauses in Multiple Contracts Novation of Contract Agency Agreements Foreign Trade Contracts

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Parties

Agarwal Engineering Co.

Appellant

Technoimpex Hungarian Machine Industries

Respondent

Procedural Posture

Civil Appeal / Appeal by Special Leave From the Judgment and Order Dated 3 2 1976 of the Calcutta High Court in Award Matter No. 109 of 1975.

Legal Issues

  1. 1 Whether the arbitration clause in the later agency agreement (Annexure C) supersedes the arbitration clause in the earlier contracts for sale of machinery (Annexures B1 and B2).

Ratio Decidendi

Annexures B1 and B2 are self-contained contracts for the specific sale of EK 25 and EK 13A machinery; the arbitration clause in those contracts (clause 8) governs any disputes related to those sales. Annexure C is a later and separate agency agreement for future transactions and expressly does not have retroactive effect over earlier contracts. Therefore, the arbitration clause in B1 and B2 applies to the present dispute.

Court Disposition

Appeal allowed

Orders

  • If the respondent, in writing by August 15, 1977, chooses any particular tribunal of Arbitration set up by any Chamber of Commerce in Bombay or Calcutta, the reference of the dispute will go to that body; otherwise, the Tribunal of Arbitration of the Bharat Chamber of Commerce will have jurisdiction and continue the...
  • The arbitrators will decide the rights and liabilities of the parties according to clause 8 in Annexures B1 and B2.