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2014 (4) TMI 608

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..... be governed by the law of England. The seat of Arbitration is admittedly England - arbitration clause is not strictly the same as recommended by the Refined Sugar Association, London which clearly stipulated that the arbitration shall be conducted in accordance with the English law. But this does not take us far. The condition that the contract is subject to the Rules of the Refined Sugar Association, London which stand inserted in the contract and wordings of Rule 8 clinch the relevant issue in favour of the respondent - Decided in favour of appellant. - Petition for Special Leave to Appeal (Civil) No. 27404 of 2013 - - - Dated:- 28-3-2014 - Anil R. Dave And Shiva Kirti Singh,JJ. JUDGMENT Shiva Kirti Singh, J. 1. After h .....

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..... e of Bhatia International (supra) the provisions of Part I of the Act would apply to International Commercial Arbitration held out of India unless the parties by agreement, express or implied, exclude all or any of its provisions. 3. Since we are in agreement with the views of learned High Court of Bombay, it is not necessary to go to the factual details but on account of lengthy submissions advanced on behalf of the petitioner, we feel it proper to extract paragraph 3 of the impugned judgment which reflects not only the relevant facts but also the relevant terms and conditions of the agreement between the parties. It reads thus: 3. The Appellant is an Indian Company which carries on the business of import and export of sugar among o .....

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..... e of this Court. An objection was taken to the jurisdiction of this Court to entertain the petition on the ground that the applicability of Part-I of the Act was excluded by the agreement between the parties and consequently even under the law as it then prevailed in Bhatia International, a Petition under Section 34 was not maintainable. The learned Single Judge has upheld the objection and has come to the conclusion that this Court has no jurisdiction to entertain a challenge to the award under Section 34. The judgment is called in question in appeal. 4. After discussing appropriate case laws, the High Court summarized the relevant facts and its views in paragraph 20 which also conveniently extracts Rule 8 of the Rules of Refined Sugar .....

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..... e or become. The seat of the Arbitration shall be England and all proceedings shall take place in England. It shall not be necessary for the award to state expressly the seat of the arbitration. The terms of the purchase contract as well as Rule 8 of the Rules of the Refined Sugar Association would make it clear that disputes shall be settled in accordance with the law of England wherever the domicile, residence or place of business of parties to the contract may be or become. Moreover, for the purposes of all proceedings in arbitration, the contract shall be deemed to have been made in England and England shall be regarded as the place of performance. The seat of the arbitration shall be England and all proceedings shall take place in Eng .....

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..... sidered view, would be the law of England. 5. Since one of the terms and conditions of the agreement makes the contract subject to the Rules of the Refined Sugar Association, London by treating the same to have been expressly inserted in the agreement, Rule 8 of the Refined Sugar Association, London leaves no manner of doubt that the parties have not only accepted English law as the law governing the contract but the disputes and the arbitration shall also be governed by the law of England. The seat of Arbitration is admittedly England. 6. Learned counsel for the petitioner highlighted that the arbitration clause is not strictly the same as recommended by the Refined Sugar Association, London which clearly stipulated that the arbitra .....

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