ENERCON (INDIA) LTD. & ORS. versus ENERCON GMBH & ANR.

ENERCON (INDIA) LTD. & ORS. versus ENERCON GMBH & ANR.

The arbitration clause is independent and enforceable regardless of whether the underlying IPLA contract was concluded; all disputes arising out of SHA, TKHA, SSHAs, STKHA, Agreed Principles, and IPLA, including whether IPLA is concluded, are referred to arbitration. The seat of arbitration is in India (and not London), for which Indian courts exercise exclusive jurisdiction. Anti-suit injunction granted by Daman trial court is restored, restraining respondents from pursuing proceedings in English courts relevant to arbitration.

Parties
Appellant: Enercon (India) Ltd.; Respondent: Enercon GmbH; Appellant: Appellants Nos. 2 and 3; Respondent: Respondent No.2
Jurisdiction
India
Judgment Date
14 February 2014
Procedural Posture
Civil Appeal / Final Disposal by Supreme Court
Outcome
Appeals disposed of; Civil Appeal No.2087 of 2014 dismissed; Civil Appeal No.2086 of 2014 partly allowed.
Legal Topics
International Commercial Arbitration, Separability of Arbitration Agreement, Anti Suit Injunctions, Seat and Venue of Arbitration, Concurrent Jurisdiction
Arbitration Commercial Law International Commercial Arbitration Separability of Arbitration Agreement Anti Suit Injunctions Seat and Venue of Arbitration Concurrent Jurisdiction

Case Brief

Summary, issues, holding and outcome

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Parties

Enercon (India) Ltd.

Appellant

Enercon GmbH

Respondent

Appellants Nos. 2 and 3

Appellant

Respondent No.2

Respondent

Procedural Posture

Civil Appeal / Final Disposal by Supreme Court

Legal Issues

  1. 1 Is the IPLA a valid and concluded contract?
  2. 2 Should the issue of whether IPLA is a concluded contract be decided by the Court or the Arbitral Tribunal?
  3. 3 Can appellants refuse to join arbitration on plea that there is no concluded IPLA?

Ratio Decidendi

The arbitration clause is independent and enforceable regardless of whether the underlying IPLA contract was concluded; all disputes arising out of SHA, TKHA, SSHAs, STKHA, Agreed Principles, and IPLA, including whether IPLA is concluded, are referred to arbitration. The seat of arbitration is in India (and not London), for which Indian courts exercise exclusive jurisdiction. Anti-suit injunction granted by Daman trial court is restored, restraining respondents from pursuing proceedings in English courts relevant to arbitration.

Court Disposition

Appeals disposed of; Civil Appeal No.2087 of 2014 dismissed; Civil Appeal No.2086 of 2014 partly allowed.

Orders

  • All disputes relating to SHA, TKHA, SSHAs, STKHA, Agreed Principles, and IPLA—including whether IPLA is a concluded contract—referred to arbitral tribunal.
  • Lord Hoffmann appointed as third arbitrator and Chairman of Arbitral Tribunal.