NATIONAL AGRICULTURAL COOPERATIVE MARKETING FEDERATION OF INDIA LTD. versus ALIMENTA S.A.

NATIONAL AGRICULTURAL COOPERATIVE MARKETING FEDERATION OF INDIA LTD. versus ALIMENTA S.A.

Section 35 of the Arbitration Act, 1940 does not apply in the present facts. Filing suit to save limitation does not vitiate the arbitration or make an award bad under Section 35. The High Court rightly declined to grant stay of arbitration proceedings since there was a valid arbitration agreement for the first contract and continuing arbitration does not amount to abandonment or conflict with the suit as permitted by the Supreme Court's interim order.

Parties
Petitioner: National Agricultural Cooperative Marketing Federation of India Ltd.; Respondent: Alimenta S.A.
Jurisdiction
India
Judgment Date
26 October 1988
Procedural Posture
Special Leave Petition (civil) / Final Judgment on Application for Leave to Appeal
Outcome
Application dismissed
Legal Topics
Stay of Arbitration Proceedings, Supply Contracts, Limitation, Arbitration Agreement Validity
Arbitration Contract Law Stay of Arbitration Proceedings Supply Contracts Limitation Arbitration Agreement Validity

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Parties

National Agricultural Cooperative Marketing Federation of India Ltd.

Petitioner

Alimenta S.A.

Respondent

Procedural Posture

Special Leave Petition (civil) / Final Judgment on Application for Leave to Appeal

Legal Issues

  1. 1 Whether the High Court was right in declining to grant stay of arbitration proceedings
  2. 2 Applicability of Section 35 of Arbitration Act, 1940 to foreign arbitration
  3. 3 Effect of filing suit to preserve limitation on arbitration proceedings

Ratio Decidendi

Section 35 of the Arbitration Act, 1940 does not apply in the present facts. Filing suit to save limitation does not vitiate the arbitration or make an award bad under Section 35. The High Court rightly declined to grant stay of arbitration proceedings since there was a valid arbitration agreement for the first contract and continuing arbitration does not amount to abandonment or conflict with the suit as permitted by the Supreme Court's interim order.

Court Disposition

Application dismissed

Orders

  • There will be no stay of the arbitration in relation to the first contract only.
  • Application fails and is accordingly dismissed.