STATE OF GOA versus PRAVEEN ENTERPRISES

STATE OF GOA versus PRAVEEN ENTERPRISES

Where an arbitration agreement contemplates reference of all disputes, rather than specific disputes, the arbitrator is empowered to entertain counter claims, even if they are not specifically mentioned in the proceedings under section 11 of the Arbitration and Conciliation Act, 1996. There is no requirement that...

Source-derived case information.

Parties
Appellant: State of Goa; Respondent: Praveen Enterprises
Jurisdiction
India
Judgment Date
04 July 2011
Procedural Posture
Civil Appeal / Supreme Court Appeal From High Court Judgment
Outcome
Appeal allowed
Legal Topics
Arbitral Appointment, Counter Claims, Scope of Reference, Jurisdiction of Arbitrator, Limitation in Arbitration
Arbitration Arbitral Appointment Counter Claims Scope of Reference Jurisdiction of Arbitrator Limitation in Arbitration

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Parties

State of Goa

Appellant

Praveen Enterprises

Respondent

Procedural Posture

Civil Appeal / Supreme Court Appeal From High Court Judgment

Legal Issues

  1. 1 Whether an arbitrator has jurisdiction to entertain counter claims not expressly referred to arbitration
  2. 2 Whether counter claims can be raised before the arbitrator if not raised at earlier stages
  3. 3 Interpretation of scope of 'reference to arbitration' under the agreement and the Arbitration and Conciliation Act, 1996

Ratio Decidendi

Where an arbitration agreement contemplates reference of all disputes, rather than specific disputes, the arbitrator is empowered to entertain counter claims, even if they are not specifically mentioned in the proceedings under section 11 of the Arbitration and Conciliation Act, 1996. There is no requirement that all counter claims be set out in the application or statement of objections before the court; the arbitrator’s jurisdiction extends to counter claims unless the agreement expressly provides otherwise.

Court Disposition

Appeal allowed

Orders

  • The order of the High Court affirming the judgment of the trial court in regard to counter claim No.3 is set aside.
  • The award of the arbitrator is upheld in its entirety.