GIRIRAJ GARG versus COAL INDIA LTD. & ORS.

GIRIRAJ GARG versus COAL INDIA LTD. & ORS.

The arbitration clause (Clause 11.12) in the 2007 Scheme stands incorporated in the individual sale orders as the orders specifically refer to guidelines, circulars, and instructions by Coal India Ltd., and the 2007 Scheme forms the basis of these transactions. Therefore, disputes arising out of such transactions are subject to arbitration under the Arbitration and Conciliation Act, 1996. The view taken by the Single Judge is erroneous and set aside.

Parties
Appellant: Giriraj Garg; Respondents: Coal India Ltd. & Ors.
Jurisdiction
India
Judgment Date
15 February 2019
Procedural Posture
Civil Appeal / Appeal Against Order of Single Judge, High Court Rejecting Appointment of Arbitrator
Outcome
Appeal allowed.
Legal Topics
Incorporation by Reference, Arbitration Agreement, Arbitration Clause, Standard Form Contracts
Arbitration Law Incorporation by Reference Arbitration Agreement Arbitration Clause Standard Form Contracts

Case Brief

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Parties

Giriraj Garg

Appellant

Coal India Ltd. & Ors.

Respondents

Procedural Posture

Civil Appeal / Appeal Against Order of Single Judge, High Court Rejecting Appointment of Arbitrator

Legal Issues

  1. 1 Whether the arbitration clause contained in the 2007 Scheme was incorporated by reference into individual sale orders.
  2. 2 Validity of incorporation by reference under Section 7(5) of the Arbitration and Conciliation Act, 1996.
  3. 3 Whether rejection by Single Judge of appointment of arbitrator was correct.

Ratio Decidendi

The arbitration clause (Clause 11.12) in the 2007 Scheme stands incorporated in the individual sale orders as the orders specifically refer to guidelines, circulars, and instructions by Coal India Ltd., and the 2007 Scheme forms the basis of these transactions. Therefore, disputes arising out of such transactions are subject to arbitration under the Arbitration and Conciliation Act, 1996. The view taken by the Single Judge is erroneous and set aside.

Court Disposition

Appeal allowed.

Orders

  • Appointment of Mr. Justice Pranab Kumar Chattopadhyay (Retired Judge, Calcutta High Court) as Sole Arbitrator to adjudicate disputes between the Appellant and Respondent No. 2 under the 2007 Scheme, subject to disclosure and declaration as per Sixth Schedule to the Arbitration and Conciliation Act, 1996 (as amended...
  • Arbitration proceedings to be conducted in Kolkata.