M/S. DHANRAJAMAL GOBINDRAM versus M/S. SHAMJI KALIDAS AND CO.

M/S. DHANRAJAMAL GOBINDRAM versus M/S. SHAMJI KALIDAS AND CO.

The arbitration agreement is valid and enforceable; statutory bye-laws do not render the court functus officio under Section 20, Arbitration Act. Clauses 6 and 7 do not contravene the Foreign Exchange Regulation Act due to the saving effect of Section 21. The Force Majeure clause does not create uncertainty preventing enforcement. Indian law applies due to parties' declared intention and contractual choice of jurisdiction and arbitration forum.

Parties
Appellant: M/S. Dhanrajamal Gobindram; Respondent: M/S. Shamji Kalidas and Co.
Jurisdiction
India
Judgment Date
27 February 1961
Procedural Posture
Civil Appeal / Supreme Court Appellate Disposition Following Reversal of Bombay High Court Judgment
Outcome
appeal dismissed
Legal Topics
Arbitration Agreement Validity, Jurisdiction, Force Majeure Clause, Statutory Bye Laws, Foreign Exchange Regulation, Import Policy
Arbitration Contract Law Foreign Exchange Regulation Arbitration Agreement Validity Jurisdiction Force Majeure Clause Statutory Bye Laws Import Policy

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Parties

M/S. Dhanrajamal Gobindram

Appellant

M/S. Shamji Kalidas and Co.

Respondent

Procedural Posture

Civil Appeal / Supreme Court Appellate Disposition Following Reversal of Bombay High Court Judgment

Legal Issues

  1. 1 Whether the arbitration agreement is valid and enforceable under Indian law
  2. 2 Whether clauses 6 and 7 contravene the Foreign Exchange Regulation Act, 1947
  3. 3 Whether the Force Majeure clause renders the contract void for uncertainty

Ratio Decidendi

The arbitration agreement is valid and enforceable; statutory bye-laws do not render the court functus officio under Section 20, Arbitration Act. Clauses 6 and 7 do not contravene the Foreign Exchange Regulation Act due to the saving effect of Section 21. The Force Majeure clause does not create uncertainty preventing enforcement. Indian law applies due to parties' declared intention and contractual choice of jurisdiction and arbitration forum.

Court Disposition

appeal dismissed

Orders

  • Appeal dismissed with costs