V/O TRACTOROEXPORT, MOSCOW versus M/S. TARAPORE & COMPANY & ANR.

V/O TRACTOROEXPORT, MOSCOW versus M/S. TARAPORE & COMPANY & ANR.

Majority held that 'submission' in s. 3 of the Foreign Awards (Recognition and Enforcement) Act, 1961 means an actual submission made in pursuance of an arbitration agreement, necessitating reference of disputes to arbitration before stay can be granted; rejected broader reading including mere arbitral clause....

Source-derived case information.

Parties
Appellant: V. 0 Tractoroexport, Moscow; Respondent No. 1: M/s. Tarapore & Company; Respondent No. 2: Bank of India Ltd., Madras
Jurisdiction
India
Judgment Date
28 October 1969
Procedural Posture
Civil Appeal / Final Decision on Appeal by Special Leave From Madras High Court
Outcome
Appeals dismissed (majority); injunction granted by High Court upheld (majority opinion); dissenting view would have allowed stay and set aside injunction.
Legal Topics
Interpretation of 'submission' Under Foreign Awards Act, Stay of Suit Under Foreign Awards (recognition and Enforcement) Act, 1961, Jurisdiction for Injunction Against Foreign Arbitration, Interpretation of Statute Vis À Vis International Convention
Arbitration International Commercial Arbitration Interpretation of 'submission' Under Foreign Awards Act Stay of Suit Under Foreign Awards (recognition and Enforcement) Act, 1961 Jurisdiction for Injunction Against Foreign Arbitration Interpretation of Statute Vis À Vis International Convention

Source-derived case record

Summary, issues, holding and outcome

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Parties

V. 0 Tractoroexport, Moscow

Appellant

M/s. Tarapore & Company

Respondent No. 1

Bank of India Ltd., Madras

Respondent No. 2

Procedural Posture

Civil Appeal / Final Decision on Appeal by Special Leave From Madras High Court

Legal Issues

  1. 1 Meaning of 'submission made in pursuance of an agreement' under s. 3 of Foreign Awards Act, 1961
  2. 2 Whether Indian courts can grant injunction restraining a party from proceeding with arbitration in Moscow before Foreign Trade Arbitration Commission
  3. 3 Applicability of s. 35 Arbitration Act, 1940 to grant of injunction

Ratio Decidendi

Majority held that 'submission' in s. 3 of the Foreign Awards (Recognition and Enforcement) Act, 1961 means an actual submission made in pursuance of an arbitration agreement, necessitating reference of disputes to arbitration before stay can be granted; rejected broader reading including mere arbitral clause. Indian courts have discretion in granting injunction to restrain foreign arbitration, but such injunction not justified without proof of vexation or oppression due to parallel actions.

Court Disposition

Appeals dismissed (majority); injunction granted by High Court upheld (majority opinion); dissenting view would have allowed stay and set aside injunction.

Orders

  • No order as to costs
  • Further hearing directed on questions of agreement nullity and performance