BALASORE ALLOYS LIMITED versus MEDIMA LLC

BALASORE ALLOYS LIMITED versus MEDIMA LLC

The umbrella/pricing Agreement dated 31.03.2018 (Clause 23) governs disputes concerning pricing and payment terms and, having been validly invoked with an ICC tribunal constituted, its arbitration clause prevails over Clause 7 of individual purchase orders; consequently the Section 11 application to appoint an arbitrator under Clause 7 was not maintainable and was dismissed.

Parties
Applicant: Balasore Alloys Limited; Respondent: Medima LLC
Jurisdiction
India
Judgment Date
16 September 2020
Procedural Posture
Arbitration Petition Under Section 11(6) Read With Section 11(12)(a) of the Arbitration and Conciliation Act, 1996 / Hearing on Appointment of Arbitrator; Final Judgment
Outcome
Arbitration Application No.15/2020 and SLP (C) No.10264/2020 dismissed with no order as to costs.
Legal Topics
Appointment of Arbitrator, Interpretation of Arbitration Clauses, Harmonisation of Arbitration Clauses, Scope of Umbrella/pricing Agreement
Arbitration and Conciliation Act, 1996 Appointment of Arbitrator Interpretation of Arbitration Clauses Harmonisation of Arbitration Clauses Scope of Umbrella/pricing Agreement

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Parties

Balasore Alloys Limited

Applicant

Medima LLC

Respondent

Procedural Posture

Arbitration Petition Under Section 11(6) Read With Section 11(12)(a) of the Arbitration and Conciliation Act, 1996 / Hearing on Appointment of Arbitrator; Final Judgment

Legal Issues

  1. 1 Which arbitration clause governs the disputes between the parties (Clause 7 of individual purchase orders or Clause 23 of the Agreement dated 31.03.2018)
  2. 2 Whether Section 11 appointment invoking Clause 7 is maintainable when an arbitral tribunal has been constituted under Clause 23 by ICC
  3. 3 Whether the Pricing Agreement (dated 31.03.2018) applies to earlier purchase orders and governs pricing/payment disputes

Ratio Decidendi

The umbrella/pricing Agreement dated 31.03.2018 (Clause 23) governs disputes concerning pricing and payment terms and, having been validly invoked with an ICC tribunal constituted, its arbitration clause prevails over Clause 7 of individual purchase orders; consequently the Section 11 application to appoint an arbitrator under Clause 7 was not maintainable and was dismissed.

Court Disposition

Arbitration Application No.15/2020 and SLP (C) No.10264/2020 dismissed with no order as to costs.

Orders

  • Arbitration Application (Civil) No.15/2020 dismissed.
  • Special Leave Petition (Civil) No.10264/2020 dismissed.