{"id":123902,"date":"2008-10-16T00:00:00","date_gmt":"2008-10-15T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/ms-ballarpur-industries-ltd-vs-kerala-state-detergents-and-on-16-october-2008"},"modified":"2016-08-05T17:40:45","modified_gmt":"2016-08-05T12:10:45","slug":"ms-ballarpur-industries-ltd-vs-kerala-state-detergents-and-on-16-october-2008","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/ms-ballarpur-industries-ltd-vs-kerala-state-detergents-and-on-16-october-2008","title":{"rendered":"M\/S Ballarpur Industries Ltd vs Kerala State Detergents And … on 16 October, 2008"},"content":{"rendered":"
Karnataka High Court<\/div>\n
M\/S Ballarpur Industries Ltd vs Kerala State Detergents And … on 16 October, 2008<\/div>\n
Author: N.Ananda<\/div>\n
IN THE HIGH COURT OF KARNATAKA AT BANGALG\u00a7\u00a7_EI\"'--VVA\n\nDATED THIS THE :6'I'H DAY OF ocroagi\ufb01  ~\n\nBEFORE   \n\nTHE HOI\\E'BLE MR. JUSTIVC7\/IE i?7_;A\u00a7\u00a7IAN_$A   \n\n   \n\nM.F.A.NO.698  2<j03\ufb01 AA   \nBETWEEN: I   I I\n\n1 M\/S BALLARPUR1NDUs'r121Es5I:I*D."-I  _\nA COMPANY INCORPORATE-Dv'U'ND_E'R '\nTHE COMPANIES AC.'.l'..A_ND HAVING; " ' \nITS oFFEcE.A'r..F1Rs'rINa31A.PLA~3\u00a7: - \nTOWER Ti' hI'T":1EEi?AE\u00a5LI\u00e9GURGAQN'ROAD\n\nGURGAQF3, H\u00a7\u00e93f%YAI*3A'--3 22 002- \nREPRESE}N_'I'ED\u00ab.HER BEN BY ms\nASS'i';MANAGE-R--F.DIvi1N'~SMT.R.DHARMAMBAL\n\n\u00bb 4- g    ...APPELLAN'I'\n\n(By : ms sUreDARAswA_m*~~-- IIMMDAS, ADVOCATE)\n\n        \n\n \u00bb  ,V\u00a7{\u00a7;RAILA'sTATE DETERGENTS\n\n ANVEL-'.._CHEMIi\\$ALS mm\n'-__A c:0MPA:sIY MCORPORATED\n UND.ER---THE COMPANIES ACT\n AND HAVING rrs REG OFFICE\nAT KUTFIPURAM,\nI I MA.u.ARpuRAM DISTRICT\n'KERALA S'I'A'I'E'.\n\nI "-- _fREPRESEN'I'ED HEREIN BY ITS\n\nMANAGING DIRECFOR\n RESPONDENT<\/pre>\n
 (By M\/S.: NARAYANA A\/s,ADvo<:A'I'Es)<\/p>\n
MFA FILED U \/ S 39 OF' ARBITRATION ACT AGAINST THE
\nORDER ET. 1.7.03 PASSED IN A.C'..NO.9\/93 ON THE FILE OF
\nTHE VI ADDL. CITY CIVIL JUDGE, BANGALORE, CCCH N011,<\/p>\n
DISNHSSING THE PETITION FILED BY THE APPELLANT HE'i\u00a7'E\u00a3.N
\n}I\/ S 33 AND 20 OF THE ARBWRATION 85 CONCILIATION-\u00ab}\u00a7CXI*".-\u00ab_V  <\/p>\n
This appeal, coming on for hearing,
\nCourt, delivered the following:    T' <\/p>\n
The appellant had  eeappncae\u00a2:;%e
\nSections 22 and 33 ref Z Aet "  for a
\ndeclaration that  12.5.1990
\nentered into  I  stood
\n 1991 and there is
\nno   existence between the<\/p>\n
parties.   sought for an alternative<\/p>\n
 .   the  eeur.t.Mwe1e to hold that an arbitration<\/p>\n
  :evx;1gbs_ists between the par\ufb01es, then to direct<\/p>\n
   to be \ufb01led and to make a reference<\/p>\n
T_to oiie..ef\u00ab:_3:eere arbitrators to be appointed by the court<\/p>\n
VA mew,<\/p>\n
9' H2. The respondent entered appearance and<\/p>\n
h  '  " .'eentested the application.
\nA 'F\\?' . ., I A 631<\/p>\n
claim for damages of Rs. 1.94,40,.OO0\/-. This ~ V.<\/p>\n
suitably replied by appellant on 3. I 1.  <\/p>\n
attention of respondent about
\ncontract by mutual agneementonz199   A' by\n<\/p>\n
5. The appellant alse
\n21.01.1993 from  tebtermme
\nthe agreement dated   one more ‘
\nletter was by  29.01.1993
\nwherein it  that respondent
\nwould  or the agreement dated<\/p>\n
12.4. 1996   to arbitration. Therefore,<\/p>\n
 _ appe\ufb02ent \ufb01led’ iapgvjrlication before the trial court by<\/p>\n
V.  idprotdsions of Sections 22 and 33 of Arbitration<\/p>\n
   of declaration that the ageement<\/p>\n
V -V dated a  stood discharged on 27 .9. 1991 and<\/p>\n
 V’ .thereA  no arbitration agreement existing between<\/p>\n
‘   In the alternative, if the court were to hold that<\/p>\n
” erbitration agreement subsists between the parties, for<\/p>\n
reference of disputes to one or more arbitrators to be<\/p>\n
appointed by the court. a~\\-5} _.~_  ,.<\/p>\n
7. The respondent \ufb02ied objections denying____the
\naverments of the application. The respondent’-.”
\nspeci\ufb01cally contended, in the  4.
\n12.4.1990 there is no references’ -to 4.’_f{)f
\ndetergents by appellant to USSR.;\u00b0.’\u00a3t ism
\nagreement that respondent
\nraw~materia1s for purpose of aofvdetergents
\nwhich are to be exp\u00a7r:ea     ‘I’herefore,<\/p>\n
respondent Ltgat had<\/p>\n
taken Zplace  the year 1990 have no<\/p>\n
relevance  teagcenv   12.4.1990 entered into<\/p>\n
 _  the   appellant cannot invoke for, L..\u00ab_.(.I’u.\n<\/p>\n
materials supplied to him. The respondent A’  %
\nthat there was meeting held on 27.9.
\nhad ameed to terminate the
\nhas contended that agreeme.r.1_t wds._hotV   L.
\npleaded by appellant   has
\ncontended that in view:–  erhitratioh clause
\nin the agreement,   to invoke
\narbitration  __::–4\u00a7V’.’U5:v.’fVi3:<::'\u00e9"'V<'$gI'eeII}e11t dated<\/p>\n
9.  judge on consideration of<\/p>\n
averments of the  objections and several<\/p>\n
 ‘_    the parties has negatived the<\/p>\n
  the appellant that ageement dated<\/p>\n
‘j_  into between parties stood<\/p>\n
I_ter\u00a7inaStedVon 27.9.1991. The learned trial judge has<\/p>\n
 held,–..  if such a contention is available to appellant,<\/p>\n
   theisame could be raised before the arbitrator.<\/p>\n
The trial court dismissed the application.<\/p>\n
Therefore, appellant is before this court<\/p>\n
J _\u00bb;’__’\/63\/”.  S’<\/p>\n
10. I have heard <\/p>\n
senior counsel for apmllant and  ” .. V’ <\/p>\n
learned senior counsel for  fl  ‘ ‘ A\n<\/p>\n
11. The learned coun~$ei_
\njudments of the Siipreme   1962
\nso 1810, AIR 1985 see 667 has
\nmade foI10WiI1g\n<\/p>\n
(i) The   egiieement as also
\n     to arbitrator,
\n ted the court. The same being
\n court cannot  such<\/p>\n
a  issue decided by the arbitrator.<\/p>\n
  (gi, .  trial judge has ignored several letters<\/p>\n
 Le. ‘ which would establish that the
\n between the parties stood discharged<\/p>\n
it ”  terminated on 27.9.1991.<\/p>\n
  The learned trial judge has committed an error in<\/p>\n
holding that there exists arbitration ageement
\n.  .1
\nbetween the parties. N’ Cg,L,,.g:eue. Cm,<\/p>\n
(iv) The learned trial judge committed a <\/p>\n
holding tlimt even if such a contention.    i <\/p>\n
to appellant, the same
\narbitrator. The leeraed’ A ‘     it .
\nrejected the applicatioii  to  ‘V.
\nalternate p1aye3;._._”‘:;nacle”‘\u00a7V.’  ._ e _ apeellant for
\nreference of   —-\n<\/p>\n
12.     appearing for
\nrespondezit    ‘submissions:
\n ~_  of appellant that it had
\nit   2  agreement with respondent
\nVforl”  of detergents to USSR has no
\n   It is not one of the tenns of the
\nX   dated 12.4.1990.\n<\/p>\n
   respondent had agreed to process the
\n raW~\u00bbmaterials supplied by the appellant
\nafter processing, \ufb01nished material to
\nappellant in terms of ageement dated
\n12.4.1990. There was no implied or<\/p>\n
expresse ameement between the parties<\/p>\n
3′? , ..  4′ xxx, t”3’V’-‘C’-“[“*?’<\/p>\n
that respondent should
\nmaterial and supply  “to: K V’
\nfor being exported
\npolitical t:ncc1’tai1*;t\u00a7{.V..w1iic:h’ fad  in
\nUSSR in the
\nwhatsoever 4…’:  _  u an ‘\ufb01gment dated
\n12.4.1990.       <\/p>\n
(iii)   of  was paid by
\n____ H   towards processing
\n ms of raw materials which
\n%*      gamed to respondent by<\/p>\n
    termination of appellant cannot<\/p>\n
“iv;  arbitration clause stipulated in the
\n agreement dated 12.4.1990 is
\ncomprehensive agreement to decide the
\nquestion as to whether ageement has been
\nterminated or whether party to agreement<\/p>\n
have committed breach of contract and<\/p>\n
  \/’__\/\u00a33\/’1,..g…\ufb015\u00a3 Wm.\n<\/p>\n
I2<\/p>\n
liability of appellant to pay a
\nclaimed by respondent. it  ll
\nIn support of these submi\u00a7ssions,’_
\ncounsel for respondent has  ‘#1
\nreported in AIR 1935 so 1  X 1 A l\n<\/p>\n
13. Having regargil to; mede by
\nlearned Senior  Jfelr   contentions
\nraised by tl1(:\u00a7..p:-};t’l::f_irE’,S    reiterated<\/p>\n
before tlliei  ‘f01f11iliz1eteV–:_1’e1Iowing points for<\/p>\n
  . ‘.\n<\/p>\n
(i)   dated 12.4.1990
\n   enteI”‘etVi.l..__.__iI*lt0 between the parties was
\n  in the context of facts stated in
\nV ‘V ‘V”‘.V\ufb01\ufb01\u00a7’%#l’\u00e9[::.\u00e9\ufb01pIiw’m.mI-1?
\n vthemer the learned trial judge has
\n committed an error in holding that
\nageement dated 12.4.1990 was not
\nterminated on 27.9.1991?\n<\/p>\n
(iii) Whether the learned trial judge having held<\/p>\n
that there exists arbitratioll aareement<\/p>\n
M p,.,,e:;?!7(.,t_<\/p>\n
I3<\/p>\n
between the parties was <\/p>\n
dismissing the application __   A’  %<\/p>\n
appointing an arbitrator and.     i <\/p>\n
disputes to arbiti*iivtio:i.4  f}i1i–. _ “I  is V?
\nageement datedfl-2:4.\n<\/p>\n
of the Arbitration\n<\/p>\n
(iv) To what\n<\/p>\n
14. On careful   dated
\n12.4. 199o,_ I  to supply of
\nraw  j  processing of raw
\nmaterials    The ageement does not<\/p>\n
stipiiglaie. t11st”‘\ufb01ie  goods would be exported<\/p>\n
  to USSR. The ageemem does not contain<\/p>\n
 that supply of raw materials by<\/p>\n
V iv . appeilaiiii respondent would depend upon export of<\/p>\n
  goods by appellant to USSR. Therefore,<\/p>\n
  izigipeliant cannot be permitted to plead political turmoil<\/p>\n
T  as political uncertainty that prevailed in USSR in the<\/p>\n
U year 1990 to resoiiid from contract by invoking force<\/p>\n
majure clause. N}  ‘ .\n<\/p>\n
In my opinion, the learned trial judge having . 2<\/p>\n
the agreement between the parties was not  <\/p>\n
on 27.9.1991 should have  ._th_e <\/p>\n
arbitrator in terms of clause 22 of.  ageeinent  <\/p>\n
Section 20 of the Arbitration <\/p>\n
19. In V’iCW of flies tor the
\nreasons stated herein   No.1 in-
\nnegative and   9<\/p>\n
20. The   gnome have considered<\/p>\n
alterrietg  epgiellant and should have<\/p>\n
appointed’   in terms of the ameement<\/p>\n
 . A’VdateLi:.    should have called upon the<\/p>\n
9*  parties   terms of reference.<\/p>\n
”     of the above, I pass the following:<\/p>\n
1′ ‘Cf  it ‘the appeal is accepted in part. The \ufb01nding of the
\n   court that agreement dated 32.4.1990 was not<\/p>\n
  terminated on 27.9.1991 is con\ufb01rmed. The finding of<\/p>\n
the trial court that there exists arbitration clause in the<\/p>\n
ameement dated 27.9.1991 is confrmed. The trial
\n[\\?.\n<\/p>\n
 C’<\/p>\n
L<\/p>\n
17<\/span><\/p>\n
court is directed to restore the \ufb01le, issue notices to___the<\/p>\n
par\ufb01es and appoint an arbiuator in terms ..off_=tI1eVV<\/p>\n
agreement dated 12.4.1990 and Section   _<\/p>\n
Arbitration Act after hearing b0th\u00bb12h.C   K V’<\/p>\n
court shail call upon both  <\/p>\n
of reference.\n<\/p>\n
The obse1’vatio11_s. made.    shall; not be<\/p>\n
read as expression of oi)i;to,ione.oi’\u00bb  the case. It is<\/p>\n
made (tiear “””  ,”  obee\ufb02a\ufb01ons \ufb01iade herein. are restricted<\/p>\n
for the   <\/p>\n
Qf\ufb01oet   mud back the records along<\/p>\n
t’~wnh&mmm\u00a7u\ufb01s\u00a2\ufb01aa<\/p>\n
Sdfw
\nIudge<\/p>\n
 ef~wm\ufb01\/~<\/p>\n","protected":false},"excerpt":{"rendered":"
Karnataka High Court M\/S Ballarpur Industries Ltd vs Kerala State Detergents And … on 16 October, 2008 Author: N.Ananda IN THE HIGH COURT OF KARNATAKA AT BANGALG\u00a7\u00a7_EI”‘–VVA DATED THIS THE :6’I’H DAY OF ocroagi\ufb01 ~ BEFORE THE HOI\\E’BLE MR. JUSTIVC7\/IE i?7_;A\u00a7\u00a7IAN_$A M.F.A.NO.698 2<j03\ufb01 AA BETWEEN: I I I 1 M\/S BALLARPUR1NDUs'r121Es5I:I*D."-I _ A COMPANY INCORPORATE-Dv'U'ND_E'R […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[8,20],"tags":[],"class_list":["post-123902","post","type-post","status-publish","format-standard","hentry","category-high-court","category-karnataka-high-court"],"yoast_head":"\nM\/S Ballarpur Industries Ltd vs Kerala State Detergents And ... on 16 October, 2008 - Free Judgements of Supreme Court & High Court | Legal India<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.legalindia.com\/judgments\/ms-ballarpur-industries-ltd-vs-kerala-state-detergents-and-on-16-october-2008\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"M\/S Ballarpur Industries Ltd vs Kerala State Detergents And ... on 16 October, 2008 - 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