KARNATAKA POWER TRANSMISSION CORPORATION LIMITED AND ANOTHER versus M/S. DEEPAK CABLES (INDIA) LTD.

KARNATAKA POWER TRANSMISSION CORPORATION LIMITED AND ANOTHER versus M/S. DEEPAK CABLES (INDIA) LTD.

Clause 48 of the agreement does not constitute an arbitration agreement as it neither provides for a procedure of adjudication akin to arbitration nor expresses clear intention to refer disputes to arbitration. Clause 4.1 specifically directs disputes or differences to be decided by a competent court at Bangalore;...

Source-derived case information.

Parties
Appellant: Karnataka Power Transmission Corporation Limited; Respondent: Deepak Cables (India) Ltd.
Jurisdiction
India
Judgment Date
07 April 2014
Procedural Posture
Civil Appeal / Appeal From High Court Judgment on Application for Appointment of Arbitrator
Outcome
Appeals allowed
Legal Topics
Arbitration Agreement, Appointment of Arbitrator, Interpretation of Contract Clauses
Arbitration Law Contract Law Arbitration Agreement Appointment of Arbitrator Interpretation of Contract Clauses

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Parties

Karnataka Power Transmission Corporation Limited

Appellant

Deepak Cables (India) Ltd.

Respondent

Procedural Posture

Civil Appeal / Appeal From High Court Judgment on Application for Appointment of Arbitrator

Legal Issues

  1. 1 Whether clause 48 of the contract constitutes an arbitration agreement under the Arbitration and Conciliation Act, 1996
  2. 2 Whether disputes between parties can be referred to arbitration based on the contract

Ratio Decidendi

Clause 48 of the agreement does not constitute an arbitration agreement as it neither provides for a procedure of adjudication akin to arbitration nor expresses clear intention to refer disputes to arbitration. Clause 4.1 specifically directs disputes or differences to be decided by a competent court at Bangalore; hence, disputes cannot be referred to arbitration under the Act.

Court Disposition

Appeals allowed

Orders

  • Judgments and orders passed by the High Court set aside
  • No order as to costs