M/S. GROUPE CHIMIQUE TUNISIEN SA versus SOUTHERN PETROCHEMICALS INDUSTRIES CORPN. LTD.

M/S. GROUPE CHIMIQUE TUNISIEN SA versus SOUTHERN PETROCHEMICALS INDUSTRIES CORPN. LTD.

Purchase orders constituted contracts incorporating FAI terms, including clause 15 arbitration clause; this satisfies Section 7(5) and establishes an arbitration agreement. Limitation is for arbitral tribunal. Estoppel does not bar petitioner from changing stand. Tribunal must be composed of three arbitrators as per Section 10.

Parties
Petitioner: MIS. GROUPE CHIMIQUE TUNISIEN SA; Respondent: SOUTHERN PETROCHEMICALS INDUSTRIES CORPN. LTD.
Jurisdiction
India
Judgment Date
24 May 2006
Procedural Posture
Arbitration Petition / Petition Under Section 11(4) of Arbitration and Conciliation Act, 1996
Outcome
Petition allowed
Legal Topics
Incorporation by Reference, Appointment of Arbitral Tribunal, Interpretation of Statutes, Limitation, Estoppel
Arbitration Incorporation by Reference Appointment of Arbitral Tribunal Interpretation of Statutes Limitation Estoppel

Case Brief

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Parties

MIS. GROUPE CHIMIQUE TUNISIEN SA

Petitioner

SOUTHERN PETROCHEMICALS INDUSTRIES CORPN. LTD.

Respondent

Procedural Posture

Arbitration Petition / Petition Under Section 11(4) of Arbitration and Conciliation Act, 1996

Legal Issues

  1. 1 Whether there exists an arbitration agreement between the parties by incorporation of reference to FAI terms in purchase orders
  2. 2 Whether the respondent is estopped from seeking arbitration after denying existence of arbitration agreement in a foreign court
  3. 3 Whether limitation is an issue for the arbitral tribunal

Ratio Decidendi

Purchase orders constituted contracts incorporating FAI terms, including clause 15 arbitration clause; this satisfies Section 7(5) and establishes an arbitration agreement. Limitation is for arbitral tribunal. Estoppel does not bar petitioner from changing stand. Tribunal must be composed of three arbitrators as per Section 10.

Court Disposition

Petition allowed

Orders

  • Constitution of Arbitral Tribunal: Mr. Justice R.C. Lahoti as Presiding Arbitrator; Mr. Justice S. Ratnavel Pandian (respondent's nominee); Mr. Justice D.P. Wadhwa (petitioner's nominee).
  • Registry directed to communicate constitution of tribunal to arbitrators for expeditious proceedings.