M/S LARSEN AND TOUBRO LIMITED SCOMI ENGINEERING BHD versus MUMBAI METROPOLITAN REGION DEVELOPMENT AUTHORITY

M/S LARSEN AND TOUBRO LIMITED SCOMI ENGINEERING BHD versus MUMBAI METROPOLITAN REGION DEVELOPMENT AUTHORITY

The petitioners are required to deal with the respondent only as a consortium, whose central management and control is exercised in India; thus, the consortium does not fall within the scope of 'international commercial arbitration' under s.2(1)(f) of the Arbitration & Conciliation Act, 1996. Accordingly, the petition filed under s.11 is not maintainable and is dismissed.

Parties
Petitioner: M/S Larsen and Toubro Limited Scomi Engineering Bhd; Respondent: Mumbai Metropolitan Region Development Authority
Jurisdiction
India
Judgment Date
03 October 2018
Procedural Posture
Arbitration Petition (c) No. 28 of 2017 / Final Decision
Outcome
Arbitration Petition dismissed
Legal Topics
International Commercial Arbitration, Arbitration Agreement, Consortium Arbitration, Arbitration & Conciliation Act, 1996 S.2(1)(f)
Arbitration International Commercial Arbitration Arbitration Agreement Consortium Arbitration Arbitration & Conciliation Act, 1996 S.2(1)(f)

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Legal principles 4 Authorities cited 4 Party arguments 2 Amounts and remedies 2
Sign in to unlock

Parties

M/S Larsen and Toubro Limited Scomi Engineering Bhd

Petitioner

Mumbai Metropolitan Region Development Authority

Respondent

Procedural Posture

Arbitration Petition (c) No. 28 of 2017 / Final Decision

Legal Issues

  1. 1 Whether the consortium qualifies as an 'association' for the purposes of international commercial arbitration under s.2(1)(f)(iii) of the Arbitration and Conciliation Act, 1996
  2. 2 Whether the central management and control of the consortium is exercised in India or outside India
  3. 3 Whether the petitioners can rely upon their status as independent entities or must act as a consortium

Ratio Decidendi

The petitioners are required to deal with the respondent only as a consortium, whose central management and control is exercised in India; thus, the consortium does not fall within the scope of 'international commercial arbitration' under s.2(1)(f) of the Arbitration & Conciliation Act, 1996. Accordingly, the petition filed under s.11 is not maintainable and is dismissed.

Court Disposition

Arbitration Petition dismissed

Orders

  • Arbitration Petition dismissed
  • Petitioner may approach relevant court on non-international commercial arbitration basis