M/S CENTROTRADE MINERALS & METAL INC. versus HINDUSTAN COPPER LTD.

M/S CENTROTRADE MINERALS & METAL INC. versus HINDUSTAN COPPER LTD.

The Supreme Court held that resolving disputes by a two-tier arbitration system is valid under Indian law and is not contrary to public policy. The arbitration clause permitting appeal to a second arbitration does not violate mandatory provisions of the Arbitration and Conciliation Act, 1996, nor does it offend the...

Source-derived case information.

Parties
Appellant: M/S Centrotrade Minerals & Metal Inc.; Respondent: Hindustan Copper Ltd.
Jurisdiction
India
Judgment Date
15 December 2016
Procedural Posture
Civil Appeal / Referred to Three Judge Bench for Decision on Validity of Two Tier Arbitration; Matter Adjourned for Consideration of Enforcement Question
Outcome
Matter adjourned; validity of two-tier arbitration affirmed; appeals to be listed for consideration of enforcement issue.
Legal Topics
Party Autonomy in Arbitration, Two Tier Arbitration, Enforcement of Foreign Arbitral Awards, Arbitration and Conciliation Act, 1996 Section 48, Public Policy Under Indian Law
Arbitration Party Autonomy in Arbitration Two Tier Arbitration Enforcement of Foreign Arbitral Awards Arbitration and Conciliation Act, 1996 Section 48 Public Policy Under Indian Law

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Parties

M/S Centrotrade Minerals & Metal Inc.

Appellant

Hindustan Copper Ltd.

Respondent

Procedural Posture

Civil Appeal / Referred to Three Judge Bench for Decision on Validity of Two Tier Arbitration; Matter Adjourned for Consideration of Enforcement Question

Legal Issues

  1. 1 Is a two-tier arbitration system valid under Indian law?
  2. 2 Does an arbitration clause providing for appeal to a second arbitration violate public policy or the fundamental policy of India?
  3. 3 Do parties have autonomy to mutually agree on a two-tier arbitration process under the Arbitration and Conciliation Act, 1996?

Ratio Decidendi

The Supreme Court held that resolving disputes by a two-tier arbitration system is valid under Indian law and is not contrary to public policy. The arbitration clause permitting appeal to a second arbitration does not violate mandatory provisions of the Arbitration and Conciliation Act, 1996, nor does it offend the fundamental policy or public policy of India. Parties to an arbitration agreement have autonomy to mutually agree upon such procedural mechanisms.

Court Disposition

Matter adjourned; validity of two-tier arbitration affirmed; appeals to be listed for consideration of enforcement issue.

Orders

  • First question answered in the affirmative: two-tier arbitration clause is valid under Indian law.
  • Appeals adjourned for consideration of enforcement of appellate award.