{"id":163264,"date":"2006-05-09T00:00:00","date_gmt":"2006-05-08T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/centrotrade-minerals-metal-inc-vs-hindustan-copper-ltd-on-9-may-2006"},"modified":"2018-05-27T00:48:04","modified_gmt":"2018-05-26T19:18:04","slug":"centrotrade-minerals-metal-inc-vs-hindustan-copper-ltd-on-9-may-2006","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/centrotrade-minerals-metal-inc-vs-hindustan-copper-ltd-on-9-may-2006","title":{"rendered":"Centrotrade Minerals &amp; Metal Inc vs Hindustan Copper Ltd on 9 May, 2006"},"content":{"rendered":"<div class=\"docsource_main\">Supreme Court of India<\/div>\n<div class=\"doc_title\">Centrotrade Minerals &amp; Metal Inc vs Hindustan Copper Ltd on 9 May, 2006<\/div>\n<div class=\"doc_author\">Author: T Chatterjee<\/div>\n<div class=\"doc_bench\">Bench: S.B. Sinha, Tarun Chatterjee<\/div>\n<pre>           CASE NO.:\nAppeal (civil)  2562 of 2006\n\nPETITIONER:\nCENTROTRADE MINERALS &amp; METAL INC.\n\nRESPONDENT:\nHINDUSTAN COPPER LTD.\n\nDATE OF JUDGMENT: 09\/05\/2006\n\nBENCH:\nS.B. SINHA &amp; TARUN CHATTERJEE\n\nJUDGMENT:\n<\/pre>\n<p>JUDGMENT<\/p>\n<p>WITH<\/p>\n<p>C.A. 2564 of 2005<\/p>\n<p>TARUN CHATTERJEE, J.\n<\/p>\n<p>I have had an opportunity to go through the judgment delivered\/proposed by<br \/>\nmy learned brother S.B. Sinha, J. I am unable to agree with the conclusion<br \/>\nas well as the reasons of my learned brother and in that view of the matter<br \/>\nI would prefer to give my own reasons. In my view, the judgment and order<br \/>\nof the Division Bench and the learned Single Judge of the Calcutt High<br \/>\nCourt should be set aside and the matter be sent back to International<br \/>\nChamber of Commerce arbitrator for fresh disposal of the arbitration<br \/>\nproceedings in London in the manner indicated hereinafter.\n<\/p>\n<p>Leave granted in both the SLPs.\n<\/p>\n<p>These are two appeals which arise from the judgment or order of a Division<br \/>\nBench of the Calcutta High Court reversing a judgment or order of a learned<br \/>\nSingle Judge of the same High Court whereby and whereunder the Hindustan<br \/>\nCopper Limited (in short HCL&#8217;) was directed to make payment to Centrotrade<br \/>\nMinerals &amp; Metals Inc. (in short &#8220;Centrotrade&#8221;).\n<\/p>\n<p>Centrotrade is incorporated in United States of America dealing with sale<br \/>\nand purchase of non-precious metals including copper. Whereas HCL is a<br \/>\nGovernment of India undertaking and its business includes purchase of<br \/>\ncopper concentrate. They entered into an agreement on 16th of January, 1996<br \/>\nwhere centrotrade was the seller and the HCL was the purchaser of copper<br \/>\nconcentrate. Clause 14 of the agreement provides for arbitration in case<br \/>\nany differences or disputes arise between the parties. Clause 14 of the<br \/>\nagreement reads as under :\n<\/p>\n<p>&#8220;14. Arbitration &#8211;\n<\/p>\n<p>All disputes and difference whatsoever arising between the parties out of,<br \/>\nor relating to the construction meaning and operation or effect of the<br \/>\ncontract or the breach thereof shall be settled by arbitration in India<br \/>\nthrough the arbitration panel of the Indian Council of Arbitration in<br \/>\naccordance with the Rules of arbitration of the Indian Council of<br \/>\nArbitration.\n<\/p>\n<p>\tIf either party is in disagreement with the arbitration result in<br \/>\n\tIndia, either party will have the right to appeal to a second<br \/>\n\tarbitrator in London, U.K. in accordance with the rules of<br \/>\n\tconciliation and arbitration of the International Chamber of<br \/>\n\tCommerce in effect on the date hereof and the result of this second<br \/>\n\tarbitration will be binding on both the parties. Judgment upon the<br \/>\n\taward may be entered in any Court of Jurisdiction.&#8221;\n<\/p>\n<p>The only other relevant clause of the agreement which is required to be<br \/>\ntaken note of is Clause 16 which runs as under :\n<\/p>\n<p>&#8220;16. CONSTRUCTION:\n<\/p>\n<p>The contract is to be constructed and to take effect as a contract made in<br \/>\naccordance with the laws of India.&#8221;\n<\/p>\n<p>Disputes arose between the parties to the agreement during December 1998<br \/>\nand January 1999 and pursuant to clause 14 of the agreement, disputes were<br \/>\nreferred to Indian Council of Arbitration where Centrotrade was the<br \/>\nclaimant. The Indian Council of Arbitration appointed an arbitrator before<br \/>\nwhom Centrotrade claimed an award for a sum of US$ 383,442.90 (equivalent<br \/>\nto Indian Rupees 1,36,73,573.00 calculated at the exchange rate of Rs.<br \/>\n35.66 as prevailing on May 10, 1997) in respect of the goods shipped on<br \/>\nboard the vessels &#8220;M.V. MARITIME MASTER&#8221; AND &#8220;M.V. LOK PRITI&#8221;, and for<br \/>\ninterest pendent lite at such rate as Centrotrade was entitled to under the<br \/>\nlaw and also for interest on the sum awarded until decree was pronounced in<br \/>\nterms of the award. The arbitrator appointed by the Indian Council of<br \/>\nArbitration, however, made a `NIL&#8217; award dated 15th June, 1999. Disagreeing<br \/>\nwith the award passed by the arbitrator appointed by the Indian Council of<br \/>\nArbitration, and relying on the second part of Clause 14 of the agreement,<br \/>\nCentrotrade approached the International Chamber of Commerce (in short<br \/>\n`ICC&#8217;) on 22nd February, 2000. The arbitrator appointed by the ICC passed<br \/>\nan award on 29th of September, 2001 in favour of the Centrotrade in the<br \/>\nfollowing manner :\n<\/p>\n<p>&#8220;a. HCL do pay Centrotrade the sum of $ 152,112.33, inclusive of interest<br \/>\nto the date of this award in respect of the purchase price for the first<br \/>\nshipment.\n<\/p>\n<p>a.\tHCL do pay Centratrade the sum $ 15,815.59, inclusive of interest<br \/>\nto the date of this Award in respect of demurrage due on the first<br \/>\nshipment.\n<\/p>\n<p>b.\tHCL do pay centrotrade the sum of $ 284,653.53, inclusive of<br \/>\ninterest to the date of this Award in respect of the purchase price on the<br \/>\nsecond shipment.\n<\/p>\n<p>c.\tHCL do pay centrotrade their legal costs in this arbitration in the<br \/>\nsum of $ 82,733 and in addition the cost of the international court of<br \/>\nArbitration, the arbitrator&#8217;s fees and expenses totaling $ 29,000.\n<\/p>\n<p>d.\tHCL do pay Centrotrade compound interest on the above sums from the<br \/>\ndate of this Award at 6% p.a. with quarterly rests until the date of actual<br \/>\npayment.&#8221;\n<\/p>\n<p>After the award was passed by the ICC arbitrator, an application was filed<br \/>\nby HCL seeking declaration of the award passed by the ICC as void and not<br \/>\nenforceable. At the same time, Centrotrade filed an application for<br \/>\nenforcement of the ICC Award. These applications were transferred to the<br \/>\noriginal side of the Calcutta High Court which were heard and disposed of<br \/>\nby the Judgment and order of the learned Single Judge of that Court on 10th<br \/>\nMarch 2005. The learned Single Judge held that the ICC Award was<br \/>\nenforceable in law and therefore direction was made to HCL to make payment<br \/>\nto Centrotrade. While making this direction, it was inter alia held by the<br \/>\nlearned Single Judge as under :\n<\/p>\n<p>(a)\tThe ICC award was a foreign award under Section 44 of the<br \/>\nArbitration and Conciliation Act, 1996 (in short `the Act&#8217;) as it satisfied<br \/>\nall the conditions mentioned thereunder, namely,<\/p>\n<p>(i)\tThere was commercial relationship between the parties;\n<\/p>\n<p>(ii)\tThe award was made in U.K. &#8211; a Convention country; and<\/p>\n<p>(iii)\tThe award was made in pursuance of a written agreement between the<br \/>\nparties.\n<\/p>\n<p>(b)\tthe plea of HCL that it was not given proper opportunity to present<br \/>\ntheir case before the arbitrator appointed by the ICC was liable to be<br \/>\nrejected. In this connection, the learned Judge observed that HCL had full<br \/>\nknowledge of the proceedings and proper opportunity to present their case<br \/>\nwas duly given to HCL and therefore the plea of HCL that proper opportunity<br \/>\nwas not given, was rejected. It was also held that some papers had in fact<br \/>\nreached the arbitrator after the stipulated time and the arbitrator also<br \/>\nconsidered the submissions of HCL before making the award.\n<\/p>\n<p>(c)\tUnder the Indian law it was not impermissible to have an appellate<br \/>\narbitration forum where the agreement provided for it, following the<br \/>\njudgments in the cases of Heeralal Agarwalla &amp; Co. v. Joakim Nahapiet &amp;<br \/>\nCo., AIR (1927) Calcutta 647; Fazalally Jivaji Raja v. Khimji Poonji &amp; Co.,<br \/>\nAIR (1934) Bombay 476 and M.A. &amp; Sons v. Madras Oil and Seeds Exchange<br \/>\nLtd., AIR (1965) Madras 392, and a decision of this Court in <a href=\"\/doc\/673500\/\">Garikapatti<br \/>\nVeerava v. N. Subbiah Chaudhury, AIR<\/a> (1957) SC 540.\n<\/p>\n<p>(d)\tThe award passed by the ICC arbitrator is the relevant `award&#8217;<br \/>\nunder the Act.\n<\/p>\n<p>(e)\tThe question of the award of the Indian arbitrator becoming final<br \/>\nand binding on the parties did not arise at all.\n<\/p>\n<p>(f)\tIn view of Second Part of Clause 14 of the Agreement it was only<br \/>\nthe ICC award that was binding on the parties.\n<\/p>\n<p>(g)\tThe ICC Award was not contrary to public policy. Accordingly the<br \/>\nclaim of the HCL that Indian award was a deemed decree of the court under<br \/>\nSection 36 of the Act and therefore a provision for appellate forum and an<br \/>\naward passed by it, are against public policy of India insofar as they<br \/>\nundermine powers of Indian Courts under Sections 34, 35, and 36 of the Act,<br \/>\nwas rejected.\n<\/p>\n<p>However, on appeal, a Division Bench of the High Court, in substance, held<br \/>\nas under :\n<\/p>\n<p>(a)\tThe Second part of clause 14 of the contract allowing a second<br \/>\narbitration is valid. Relying on the decisions of Heeralal Agarwalla &amp; Co.<br \/>\nv. Joakim Nahapiet &amp; Co., (supra) Fazalally Jivaji Raja v. Khimji Poonji &amp;<br \/>\nCo., (supra) and M.A. &amp; Sons v. Madras Oil and Seeds Exchange Ltd.,<br \/>\n(supra), the Division Bench held<\/p>\n<p>that an appellate arbitration forum or a second arbitration was not<br \/>\nimpermissible under the Indian Law. Therefore, the award by the arbitrator<br \/>\nappointed by the ICC who is a second arbitrator is<\/p>\n<p>valid.\n<\/p>\n<p>(b)\tThe ICC award was not a `foreign award&#8217; within the meaning of<br \/>\nSection 44 of the Act, as according to the Division Bench, mere fulfillment<br \/>\nof conditions of section 11 of the Act did not make the award a `foreign<br \/>\naward&#8217;. This conclusion was arrived at by the Division Bench on the ground<br \/>\nthat the conditions under Section 44 are qualified by the expression &#8211;<br \/>\n`unless the context otherwise requires&#8217;. According to it, if one context<br \/>\notherwise requires, then an award which fulfills the conditions of section<br \/>\n44 becomes a domestic award. According to the Division Bench,<\/p>\n<p>a contract being governed by Indian laws is one such<\/p>\n<p>context. Therefore, the Division Bench concluded that since the present<br \/>\ncase where the law governing the contract was Indian law, the ICC Award<br \/>\nthough made outside India, was not a &#8220;foreign award&#8221;.\n<\/p>\n<p>(c)\tOn the interpretation of Clause 14 of the arbitration agreement,<br \/>\nthe Division bench held that the second arbitration in London was not in<br \/>\nthe nature of an appeal against the award of the Indian Council of<br \/>\nArbitration. Therefore, the ICC award cannot overrule the award passed by<br \/>\nthe Indian Arbitrator and thus it was not enforceable due to the operation<br \/>\nof the Indian award.\n<\/p>\n<p>On the above observation and findings made by the Division bench the<br \/>\njudgment of the learned Single Judge was set aside. Aggrieved thereby,<br \/>\nCentrotrade has filed Special Leave Petition against the aforesaid judgment<br \/>\nof the Division Bench of the Calcutta High Court and at the same time HCL<br \/>\nhas also filed another Special Leave Petition against the same judgment. In<br \/>\nboth the Special Leave Petitions notices were issued and they were taken up<br \/>\nfor final hearing together for decision.\n<\/p>\n<p>We have heard Mr. Sarkar learned senior counsel appearing for Centrotrade<br \/>\nand Mr. Debabrata Roy Choudhury learned senior counsel for HCL. I have also<br \/>\nexamined the entire material on record including the arbitration agreement,<br \/>\nthe awards and judgments of the Division Bench as well as the learned<br \/>\nSingle Judge. Before us, the following issues were raised by the learned<br \/>\ncounsel for the parties for decision in the appeals :\n<\/p>\n<p>(1) Whether second part of Clause 14 of the agreement<\/p>\n<p>providing for a two tier arbitration was valid and permissible in India<br \/>\nunder the Act ?\n<\/p>\n<p>(2) If it is valid, on the interpretation of clause 14 of the agreement,<br \/>\ncan it be said that the ICC Arbitrator sat in appeal against the award of<br \/>\nthe Indian Arbitrator ?\n<\/p>\n<p>(3) Whether the ICC award is a foreign award or not ?\n<\/p>\n<p>(4) Whether HCL was given proper opportunity to present its case before the<br \/>\nICC arbitrator?\n<\/p>\n<p>Issue No. 1 &#8211; Whether second part of Clause 14 of the agreement providing<br \/>\nfor a two tier arbitration was valid permissible in India under the Act?\n<\/p>\n<p>So far as this issue is concerned, before I go into it, it would be<br \/>\nappropriate to state that both the Division Bench and the learned Single<br \/>\nJudge held that a two tier agreement was valid and permissible in India<br \/>\nunder the Act.\n<\/p>\n<p>In my view, a two tier arbitration entered into before or after the coming<br \/>\ninto force of the Act is valid and permissible in India. A two tier<br \/>\narbitration was permissible and valid in India under both, the 1899 Act and<br \/>\nthe 1940 Act, is now well settled. In the case of Hiralal Agarwalla v.<br \/>\nJokin Nahopier &amp; Co., AIR (1927) Calcutta 647, before coming into force of<br \/>\nthe present Act, it was held that the agreement by parties to submit to<br \/>\nmore than one arbitration on the same dispute was permissible. Applying the<br \/>\nprinciples laid down in the same dispute was permissible. Applying the<br \/>\nprinciples laid down in Hiralal&#8217;s case (supra), Bombay High Court in<br \/>\nFazalally Jivaji Raja v. Khimji Poonji &amp; Co., AIR (1934) Bombay 476,<br \/>\nanswered the issue saying that a two tier arbitration is valid and<br \/>\npermissible in India. While answering this question, after considering the<br \/>\nprovisions of the Indian Arbitration Act, 1899, Bombay High Court observed<br \/>\nas follows :\n<\/p>\n<p>\t&#8220;The intention of the parties is to be sole guide for determining<br \/>\n\tthe mode of working out the submission and reaching a final<br \/>\n\tdecision till the law of arbitration is based upon the principles<br \/>\n\tof withdrawing the disputes from the ordinary Courts and enabling<br \/>\n\tthe parties to substitute a domestic tribunal. Once a Tribunal<br \/>\n\treaches a final decision, as contemplated or agreed upon by the<br \/>\n\tparties, the Arbitration Act as it was enforced come to the help to<br \/>\n\tthe parties to enforce the same decision.&#8221;\n<\/p>\n<p>This view of the Calcutta High Court and the Bombay High Court was also<br \/>\naccepted by the Madras High Court in the case of M.A. &amp; Sons v. Madras Oil<br \/>\n&amp; Seeds Exchange Ltd., AIR (1965) Madras 392. I Need not deal with the<br \/>\nissue of validity of two-tier arbitration in respect of disputes arising<br \/>\nbefore the coming into force of the Act any further.\n<\/p>\n<p>In my view this position of law has remained the same as I do not find any<br \/>\nprohibition or ban being introduced by the Act from entering into an<br \/>\nagreement providing for a two-tier arbitration and that at the time of<br \/>\nintroduction of the Act, it was well known to the legislature that it was<br \/>\nconsistently held and approved by courts of India that two-tier arbitration<br \/>\nwas permissible in India.\n<\/p>\n<p>However, it was submitted by Mr. Rai Choudhary learned senior counsel<br \/>\nappearing for HCL that use of the word &#8220;only&#8221; in Section 34 of the Act<br \/>\nwould show the legislative intendment that the domestic award cannot be<br \/>\nchallenged in any manner except in the manner provided by Section 34 of the<br \/>\nAct. This is not the position in the present case in view of second Part of<br \/>\nclause 14 of the agreement. In this case the parties consciously agreed to<br \/>\nhave the domestic award followed by the foreign award. In any view of the<br \/>\nmatter, the provisions of Section 34 of the Act are not intended to curtail<br \/>\nthe powers of the contracting parties to contract in the manner they<br \/>\ndesire.\n<\/p>\n<p>For the reasons aforesaid, I am in agreement with the conclusions of the<br \/>\nlearned Single Judge as well as the Division Bench of the Calcutta High<br \/>\nCourt that a two tier arbitration agreement, even after coming into force<br \/>\nof the present Act, is valid and permissible in India. Before I switch over<br \/>\nto the other issues, I may point out that a question arose before us that<br \/>\nthis two tier agreement under the instant case was opposed to public<br \/>\npolicy.\n<\/p>\n<p>Coming to the issue of the agreement being against the public policy of<br \/>\nIndia, I wish to differ with the findings of my learned brother S.B. Sinha,<br \/>\nJ. I agree that it is well settled that any contractual arrangement<br \/>\nnegating the statutory provisions is invalid as being opposed to public<br \/>\npolicy. My learned brother has held in his judgment, that the contractual<br \/>\narrangement entered into by the parties in this case, in particular, second<br \/>\npart of clause 14 of the agreement would in all intent and purport make the<br \/>\nprovisions of Sections 34 and 36 of the 1996 Act nugatory. I disagree with<br \/>\nthis finding of my learned brother. After a careful consideration of the<br \/>\n1996 Act, I find nothing in it prohibiting the parties from entering into<br \/>\nan agreement providing for a two tier arbitration. According to my learned<br \/>\nbrother, the part of the agreement providing for two tier arbitration is<br \/>\ninvalid under the 1996 Act and that validity of an award can only be<br \/>\nquestioned before a court under Section 34 and before no other forum chosen<br \/>\nby the parties. In my view, however, the award that must be considered by<br \/>\nthe court, for its enforcement or on the question of validity is the final<br \/>\naward that has been passed following the procedure agreed upon by the<br \/>\nparties.\n<\/p>\n<p>As already held, the reasoning adopted in the decisions, as noted herein<br \/>\nearlier, in the cases of Heeralal Agarwalla &amp; Co. v. Joakim Nahapiet &amp; Co.,<br \/>\nAIR (1927) Calcutta 647, Fazalally Jivaji Raja v. Khimji Poonji &amp; Co., AIR<br \/>\n(1934) Bombay 476 and M.A. Sons v. Madras Oil and Seeds Exchange Ltd., AIR<br \/>\n(1965) Madras 392, squarely apply to the present Act as well. Just as there<br \/>\nwas no express prohibition on the appellate arbitration in 1899 and 1940<br \/>\nActs, so there is no express prohibition in the 1996 Act. The relevant<br \/>\nsection of 1996 Act is Section 35 which only provides that &#8220;subject to this<br \/>\npart of arbitral award shall be final and binding on the parties and<br \/>\npersons claiming under them respectively.&#8221; Similarly, I find that Condition<br \/>\nNo. 7 of the First Schedule of the 1940 Act provided that &#8220;the award shall<br \/>\nbe final and binding on the parties and persons claiming under them<br \/>\nrespectively&#8221;. In M.A. &amp; Son&#8217;s case (supra) the Madras High Court while<br \/>\ndealing with this aspect of the matter made the following observations :\n<\/p>\n<p>&#8220;Naturally, these words have to be construed as subject to any right of<br \/>\nappeal, which might be provided for either by the contract itself, or by<br \/>\nany by-law governing the parties&#8230; No doubt, except upon grounds specified<br \/>\nin S. 30 of the Act, an award is not liable to be set aside, and is final<br \/>\nbetween the parties. But, what is the award that is final between the<br \/>\nparties, when the procedure governing the parties itself makes provision<br \/>\nfor an initial award on arbitration, and an appeal which may be instituted<br \/>\nby either party aggrieved?&#8230; As observed by the Supreme Court&#8230; the legal<br \/>\npursuit of successive remedies will make them all proceedings `connected by<br \/>\nan intrinsic unity&#8217; and `to be regarded as one legal proceeding&#8221;. In that<br \/>\nsense, it is the award by the appellate Tribunal, if an appeal is preferred<br \/>\nwhich becomes the final award that governs the parties&#8230;.&#8221;\n<\/p>\n<p>The reasoning given by the Madras High Court in the aforesaid decision in<br \/>\nmy view equally applies to the 1996 Act, since it is based on the meaning<br \/>\nto be given to the term &#8220;award&#8221; in the case of successive arbitration. In<br \/>\nview of the discussion made herein earlier, and considering the above<br \/>\ndecisions, I am, therefore, of the view that Section 35 is not a bar to<br \/>\nappellate arbitration. In my view this section only comes into operation<br \/>\nonce the arbitration proceedings as a whole which must include appellate<br \/>\narbitrations, if any, have ended.\n<\/p>\n<p>In my view allowing the appellate arbitrations is fully in consonance with<br \/>\nthe objects of the 1966 Act.\n<\/p>\n<p>Before parting with this aspect of the matter, we may take into<br \/>\nconsideration the question whether an arbitration clause that leads to both<br \/>\ndomestic and foreign awards on the same dispute, i.e. an arbitration clause<br \/>\nproviding for two different modes of arbitration, is valid or not under the<br \/>\nAct. In His Lordship&#8217;s view even if a two tier agreement is valid under the<br \/>\n1996 Act, it cannot be such that one award is governed by Part I of the Act<br \/>\nand the award in the second tier governed by Part-II of the 1996 Act, as<br \/>\nthe procedure applicable to the arbitration proceedings as well as for<br \/>\nenforcement of the awards is different under different parts. In my view,<br \/>\nthere is nothing under the 1996 Act prohibiting the parties from entering<br \/>\ninto an agreement whereunder the first arbitration proceeding is conducted<br \/>\nunder Part I of the 1996 Act and the appeal therefrom is conducted under<br \/>\nPart II of the 1996 Act. In fact, earlier, two separate legislations, i.e.<br \/>\nthe 1940 and 1961 Act, dealt with domestic awards and foreign awards<br \/>\nrespectively. However, the legislature keeping in mind the necessity to<br \/>\nhave similarity in administration of domestic awards as well as foreign<br \/>\nawards, has consolidated the laws relating to domestic and foreign awards<br \/>\nin the 1996 Act, in effect making both the types of awards enforceable<br \/>\nunder the same Act. Keeping this in mind, and also that parties&#8217; autonomy<br \/>\nis paramount, I am of the view that it is not impermissible under the 1996<br \/>\nAct to have one part of the award governed by Part I and the other part by<br \/>\nPart II. Further, an appeal is an intrinsic part of the original proceeding<br \/>\nand it is the final award that comes out after an appeal is preferred from<br \/>\nthe first award, that is relevant for the purpose of 1996 Act. Thus it<br \/>\nfollows that nothing in the 1996 Act prohibits the parties from providing a<br \/>\ntwo tier arbitration wherein one tier is dealt with under Part I and the<br \/>\nother under Part II of the 1996 Act. Such an agreement does not violate the<br \/>\nprovisions of Sections 34 and 36 of the 1996 Act and it cannot be said to<br \/>\nbe invalid as being opposed to public policy of India. Therefore, in my<br \/>\nview, the second part of clause 14 of the agreement and the ICC arbitration<br \/>\nin its furtherance, are not invalid as being opposed to public policy of<br \/>\nIndia.\n<\/p>\n<p>It is well recognized as my learned brother S.B. Sinha, J. had pointed out<br \/>\nthat party autonomy is a paramount consideration of the 1996 Act subject<br \/>\nonly to such safeguards as are necessary in the public interest. Therefore,<br \/>\nso long as an agreement between the parties to enter into an appellate<br \/>\narbitration does not derogate from the public interest, it is always<br \/>\npermitted. The object of Section 35 of the Act as observed in the 176th<br \/>\nReport of the Law Commission, is to limit the ambit of court intervention<br \/>\nin arbitral awards and this object is not affected by allowing appellate<br \/>\narbitrations. In this connection, it may be noted that even in foreign<br \/>\njurisdiction such as U.K., the appellate arbitrations are permitted. (See<br \/>\nRussel on Arbitration 22nd Edition page 393).\n<\/p>\n<p>That apart, even two tier arbitrations wherein the original arbitration<br \/>\nproceeding is domestic and thus governed by Part I of 1996 Act, and the<br \/>\nappellate proceeding is foreign and thus governed by Part II of the Act can<br \/>\nbe permitted. The judgment of my learned brother S.B. Sinha, J. that such<br \/>\nproceedings are opposed to the public policy of India because the Act<br \/>\nprovides different procedures in respect of domestic and foreign awards<br \/>\nappears to be based on his views that the final award in such a case would<br \/>\nbe &#8220;an admixture of domestic and foreign award&#8221;, such that &#8220;one part of<br \/>\narbitration agreement shall be enforceable as a domestic award but the<br \/>\nother part would be enforeceable as a foreign award.&#8221; But we must keep it<br \/>\nin mind that the doctrine of merger equally applies in cases of appellate<br \/>\narbitrations, such that on the issuance of appellate award, the original<br \/>\naward merges with it and only the appellate award is valid and capable of<br \/>\nenforcement. This was also the intention of the parties while incorporating<br \/>\nPart II of Clause 14 of the agreement, which clearly says that only the<br \/>\naward that would be passed by the ICC arbitrator would be binding on the<br \/>\nparties and the judgment upon that award maybe entered in any court of<br \/>\njurisdiction. Therefore, I am unable to agree that such two tier<br \/>\narbitration proceedings culminate into an admixture of two different types<br \/>\nof awards, as there is eventually only one award that subsists.\n<\/p>\n<p>For the reasons aforesaid, I, therefore, conclude that the second Part of<br \/>\nClause 14 of the agreement is valid and permissible in India under the Act.\n<\/p>\n<p>Issue No. 2 : Whether the ICC Arbitrator sat in appeal against the award of<br \/>\nthe Indian arbitrator or not?\n<\/p>\n<p>In my view, to decide Issue No. 2, it is appropriate for us to read clause<br \/>\n14 of the agreement in depth and to find out from the same the intention of<br \/>\nthe parties. In order to come to a proper conclusion on this issue, let us<br \/>\nagain reproduce Clause 14 of the arbitration agreement.\n<\/p>\n<p>&#8220;14. Arbitration &#8211;\n<\/p>\n<p>All disputes and differences whatsoever arising between the parties out of,<br \/>\nor relating to the construction meaning and operation or effect of the<br \/>\ncontract or the breach thereof shall be settled by arbitration in India<br \/>\nthrough the arbitration panel of the Indian Council of Arbitration in<br \/>\nAccordance with the Rules of arbitration of the Indian Council of<br \/>\nArbitration. If either party is in disagreement with the arbitration result<br \/>\nin India, either party will have the right to appeal to a second arbitrator<br \/>\nin London, U.K. in accordance with the rules of conciliation and<br \/>\narbitration of the International Chamber of Commerce in effect on the date<br \/>\nhereof and the result of this Second arbitration will be binding on both<br \/>\nthe parties. Judgment upon the award maybe entered in any Court of<br \/>\nJurisdiction.&#8221;\n<\/p>\n<p>It appears that the first part of the arbitration agreement deals with<br \/>\narbitration in accordance with the Rules of  Arbitration of the Indian<br \/>\nCouncil of Arbitration. This part of clause 14 of the arbitration agreement<br \/>\ndoes not say that the results of the arbitration will be binding on both<br \/>\nthe parties. Nor it says that the judgment upon the award of the first<br \/>\narbitration may be entered in any court of jurisdiction. On the other hand,<br \/>\nthe second Part of Clause 14 of the agreement, as quoted above, clearly<br \/>\nstates that if a party is in disagreement with the arbitration result in<br \/>\nIndia then the aggrieved party would have a right to appeal to a second<br \/>\narbitration in London, U.K. The word `appeal&#8217;, in my view, in this part of<br \/>\nClause 14 of the agreement has significance. If the phrase `in disagreement<br \/>\nwith the arbitration result in India&#8217; and the word `appeal&#8217; are read<br \/>\ntogether, we may come to inevitable conclusion that the ICC arbitrator<br \/>\nwould act as an appellate arbitrator based in London, U.K. Moreover, if the<br \/>\nsecond arbitration is not treated as an appeal, then it would be pointless<br \/>\nfor a party dissatisfied with a `NIL&#8217; Award in India to refer the matter<br \/>\nfor a second arbitration in London, U.K. as the `NIL&#8217; Award would always<br \/>\nprevail over the ICC Award. Accordingly, this would defeat the object of<br \/>\nthe provision in the second part of clause 14 which clearly states that<br \/>\n`the results of this second arbitration will be binding on both the<br \/>\nparties&#8217;.\n<\/p>\n<p>That apart it is now well established that original and appellate<br \/>\nproceedings are not distinct legal proceedings, but only constitute stages<br \/>\nof the same legal proceedings, which are connected by an intrinsic unity.\n<\/p>\n<p>Further, while passing the ICC Award, the ICC arbitrator in his award dated<br \/>\n29th of September, 2001, had observed that the award passed by the Indian<br \/>\nArbitrator was wrong. For clarity of factual situation, I refer to<br \/>\nparagraph 18 of the award of the International Arbitrator and in my view<br \/>\nthe said paragraph needs to be reproduced :\n<\/p>\n<p>\t&#8220;It is clear therefore that the dry weight, determined in<br \/>\n\taccordance with clause 6 at the discharge port is the final and<br \/>\n\tbinding basis for payment to be made by HCL to Centrotrade. The<br \/>\n\tArbitration Award of 15th June 1999 held otherwise, but, in my<br \/>\n\tview, this was obviously wrong. In that Award, the arbitrator found<br \/>\n\tthat clause 4, and particularly clause 4.4 of the agreement was the<br \/>\n\t`dominant clause&#8217; when that clause specifically dealt with the<br \/>\n\tquality certificate to be submitted with the shipping documents<br \/>\n\twhich would form the basis for acceptance of the shipping documents<br \/>\n\tunder the letter of credit. When in the context of the contract as<br \/>\n\ta whole, it is plain that this part of the terms relating to<br \/>\n\tprovisional payment, made on the basis of load-port quantity and<br \/>\n\tquality whereas the final amount due was to be determined by<br \/>\n\tcertificates issued at the discharging port in relation to quantity<br \/>\n\tand quality. In so far as the first stage arbitrator found that<br \/>\n\tthere was no express promise given by HCL to pay Centrotrade in<br \/>\n\trespect of Centrotrade&#8217;s claim, he appears to have ignored the<br \/>\n\tclear terms of the contract. Nor can there be any question of<br \/>\n\tapplying any public policy of India &#8220;because copper is a valuable<br \/>\n\tmaterial for the growth of Industrial development in the developing<br \/>\n\teconomy of India&#8221;, in order to influence the decision on this<br \/>\n\tpoint, whether the claim is framed in contract or for unjust<br \/>\n\tenrichment.&#8221;\n<\/p>\n<p>As seen from the above quoted passage, the ICC arbitrator dealt with the<br \/>\ncorrectness of the first award and was not acting as a mere second<br \/>\narbitrator but rather as an appellate forum.\n<\/p>\n<p>I have already held, because of the use of the word `appeal&#8217; in the second<br \/>\npart of the arbitration clause it can be said that the intention of the<br \/>\nparties was that the second arbitration was in the nature of an appeal and<br \/>\nthat the second award would take precedence over the first award. It is<br \/>\ntherefore amply clear that the intention of the parties to the agreement<br \/>\nwas that if the parties are dissatisfied with the first award and if<br \/>\napproach was made to the ICC arbitrator, in view of second Part of Clause<br \/>\n14 of the agreement, then the first arbitration award would not be binding<br \/>\non the parties nor there would be any existence of the same after the ICC<br \/>\naward was made.\n<\/p>\n<p>Thus, it cannot be said that the proceeding before the ICC arbitrator was<br \/>\nan independent proceeding nor it could be said that it was merely a second<br \/>\narbitration in London, U.K. Therefore, I am unable to agree with the views<br \/>\nexpressed by the Division Bench of the Calcutta High Court saying that the<br \/>\nICC arbitration was not in the nature of appeal. Accordingly, the findings<br \/>\nof the Division Bench of the High Court on this issue are set aside.\n<\/p>\n<p>Issue No. 3 : Whether the ICC award is a Foreign Award or not?\n<\/p>\n<p>The next question is whether the ICC award is a foreign award or not. The<br \/>\nlearned Single Judge held that it is a foreign award, whereas, the Division<br \/>\nBench of the Calcutta High Court held it not to be so and that it was fact<br \/>\na domestic award. Section 44 of the Act, deals with &#8220;foreign award&#8221;. To<br \/>\nappreciate whether a particular award is a foreign award or not, it would<br \/>\nbe appropriate for us to refer to section 44 which reads as under :\n<\/p>\n<p>&#8220;44. Definition. &#8211; In this Chapter, unless the context otherwise requires,<br \/>\n&#8220;foreign award&#8221; means an arbitral award on differences between persons<br \/>\narising out of legal relationships, whether contractual or not, considered<br \/>\nas commercial under the law in force in India, made on or after the 11th<br \/>\nday of October, 1960 &#8211;\n<\/p>\n<p>(a)\tin pursuance of an agreement in writing for arbitration to which<br \/>\nthe convention set forth in the First Schedule applies, and<\/p>\n<p>(b)\tin one of such territories as the Central Government, being<br \/>\nsatisfied that reciprocal provisions have been made may, by notification in<br \/>\nthe Official Gazette, declare to be territories to which the said<br \/>\nConvention applies.&#8221;\n<\/p>\n<p>From a bare perusal of section 44 of the Act, it appears that in order to<br \/>\ncome to a conclusion that a particular award is a foreign award, the<br \/>\nfollowing conditions have to be satisfied.\n<\/p>\n<p>(1) The legal relationship between the parties must be commercial.\n<\/p>\n<p>(2) The award must be made in pursuance of an agreement in writing.\n<\/p>\n<p>(3) The award must be made in a convention country.\n<\/p>\n<p>In the present case, it cannot be disputed that the aforesaid three<br \/>\nconditions were satisfied, that is to say, there exists a commercial<br \/>\nrelationship between the parties, the ICC award was made in pursuance of an<br \/>\nagreement in writing between the parties and the award was made in a<br \/>\nConvention Country (London, U.K.). In spite of all these conditions having<br \/>\nbeen fully satisfied, the Division Bench of the Calcutta High Court<br \/>\ndifferent with the views of the learned Single Judge by holding that it was<br \/>\na domestic award.\n<\/p>\n<p>Section 44 of the Act, as quoted herein above, therefore, makes an award<br \/>\nforeign, if the above mentioned criteria are fulfilled, `unless the context<br \/>\notherwise requires&#8217;. The Division Bench, however, laid heavy stress on this<br \/>\nphrase to say that, even though the ICC award fulfils conditions under<br \/>\nsection 44 of the Act, it cannot be considered to be a &#8220;foreign award&#8221;.<br \/>\nAccording to the Division Bench one of the situations to which the phrase<br \/>\n&#8220;unless the context otherwise requires&#8221; is applicable, is when the law<br \/>\ngoverning an arbitration agreement is Indian law. Thereby, saying that if<br \/>\nthe law governing the &#8220;otherwise foreign award&#8221; is Indian, the award<br \/>\nbecomes a domestic award. While coming to this decision, the Division Bench<br \/>\nrelied on the decisions of this Court in <a href=\"\/doc\/216597\/\">Sumitomo Heavy Industries Limited<br \/>\nv. ONGC Ltd.,<\/a> [1998] 1 SCC 305 and <a href=\"\/doc\/633347\/\">National Thermal Power Corporation v.<br \/>\nSinger Company,<\/a> [1992] 3 SCC 551. However, the aforesaid two decisions of<br \/>\nthis Court were based on section 9(b) of the repealed Foreign Awards<br \/>\n(Recognition and Enforcement) Act, 1961. Under the repealed Foreign Awards<br \/>\n(Recognition and Enforcement) Act 1961, section 9(b) expressly provided<br \/>\nthat its provisions would not be applicable to any award made on an<br \/>\narbitration agreement governed by the law of India. However, on repeal of<br \/>\nthis 1961 Act, by section 85 of the Act, no corresponding provision to<br \/>\nSection 9(b) of the 1961 Act has been made. In other words, the position of<br \/>\nlaw under section 9(b) of the Foreign Awards (Recognition and Enforcement)<br \/>\nAct, 1961 was deliberately not incorporated in the present Act. Therefore,<br \/>\nunder the present Act, an award in pursuance of an arbitration agreement<br \/>\ngoverned by Indian Law, if the conditions under Section 44 are satisfied,<br \/>\nwill not cease to be a foreign award, merely because the arbitration<br \/>\nagreement is governed by the law of India. Accordingly, in my view, the<br \/>\naforesaid two decisions of this Court on which strong reliance was placed<br \/>\nby the Division Bench of the Calcutta High Court can easily be<br \/>\ndistinguished. The Division Bench of the Calcutta High Court also held that<br \/>\nsection 48(1)(e) of the Act is one such provision which attracts the first<br \/>\npart of section 44 i.e. the phrase &#8220;unless the context otherwise requires&#8221;.<br \/>\nSection 48 (1)(e) reads as under :\n<\/p>\n<p>&#8220;48. Conditions for enforcement of foreign awards.-\n<\/p>\n<p>(1)\tEnforcement of a foreign award may be refused, at the request of<br \/>\nthe party against whom it is invoked, only if that party furnishes to the<br \/>\ncourt proof that-\n<\/p>\n<p>(2)\tThe award has not yet become binding on the parties, or has been<br \/>\nset aside or suspended by a competent authority of the country in which, or<br \/>\nunder the law of which, that award was made.&#8221;\n<\/p>\n<p>From a bare reading of this Section, it is evident that Section 48 (1)(e)<br \/>\ndeals with the grounds for refusal of the enforcement of a Foreign Award.<br \/>\nProduction of proof that such an award has been set aside or suspended by a<br \/>\ncompetent authority of the country in which, or under the law of which,<br \/>\nthat award was made, cannot change a foreign award to a domestic award, but<br \/>\nmerely makes it a foreign award which may not be enforced. <a href=\"\/doc\/216597\/\">In Sumitomo<br \/>\nHeavy Industries Limited v. ONGC Ltd.,<\/a> [1998] 1 SCC 305 it was however<br \/>\nheld, in substance, by this Court, where the contract is governed by Indian<br \/>\nlaw and the seat of the arbitration is elsewhere, wherein arbitrability of<br \/>\nthe dispute is established, procedural law of the country of seat of<br \/>\narbitration governs the conduct of the arbitration proceedings till the<br \/>\naward is delivered. Therefore, the phrase &#8220;or under the law of which that<br \/>\naward was made&#8221; used in section 48(1)(e) refers to the law of the country<br \/>\nin which the arbitration had its seat rather than the country whose law<br \/>\ngoverns the substantive contract. It is true that the contract and the<br \/>\nagreement clause is governed by the substantial law of India. It is an<br \/>\nadmitted position that the seat of the second arbitration was in U.K.<br \/>\nTherefore, relying on <a href=\"\/doc\/216597\/\">Sumitomo Heavy Industries v. ONGC Ltd. (Supra) the<\/a><br \/>\nrelevant country was U.K. under the procedural law of which the award was<br \/>\nmade. Thus, section 48 (1)(e) does not by itself contemplate attracting<br \/>\nfirst part of section 44 of the Act.\n<\/p>\n<p>In this connection, the next question is whether the expression &#8220;unless the<br \/>\ncontext otherwise requires&#8221; as used in section 44 of the Act ever comes<br \/>\ninto play. This question can be looked into by the following illustration<br \/>\nwhere the expression takes relevance.\n<\/p>\n<p>Let us consider a contract, including the arbitration agreement, governed<br \/>\nby Indian Law and under it the seat of arbitration is mentioned as U.K.<br \/>\nHowever, before the commencement of the arbitration proceeding, the parties<br \/>\nagree that though the physical seat of arbitration is in U.K., for all<br \/>\npurposes the seat of arbitration shall be deemed to be India and the<br \/>\narbitral  proceedings shall be conducted under the curial law of India. In<br \/>\nthis situation, though all the conditions under section 44 were satisfied<br \/>\nthe award by the arbitrator cannot be said to be a foreign award. In such a<br \/>\nsituation, the expression &#8220;unless the context otherwise requires&#8221; in<br \/>\nsection 44 takes meaning and becomes applicable and relevant.\n<\/p>\n<p>There is yet another aspect in this matter on the question whether the<br \/>\naward that was passed by the ICC arbitrator was a foreign award of not.<br \/>\nAccording to the Division Bench, as noted herein earlier, the award passed<br \/>\nby the ICC arbitrator was not a foreign award. Sub-section (2) of Section 2<br \/>\nof the Act clearly says that Part I of the Act shall apply where the place<br \/>\nof arbitration is in India. Sub-Section (7) of Section 2 of the Act says<br \/>\nthat an arbitral award made under Part I shall be considered as a domestic<br \/>\naward. In view of sub-sections (2) and (7) of Section 2 of the Act read<br \/>\nwith Section 44, in respect of which I have already dealt with, there<br \/>\ncannot be any doubt that the Division Bench was wrong in its conclusion<br \/>\nthat the award passed by the ICC arbitrator was a domestic award. As noted<br \/>\nherein earlier, we should also keep in mind that Section 9(b) of the<br \/>\nForeign Awards (Recognition and Enforcement) Act, 1961 which provided that<br \/>\nit did not apply to an arbitral award made pursuant to an arbitration<br \/>\nagreement governed by law of India, has been clearly omitted by Section 51<br \/>\nof the 1996 Act. In this connection, reference may be made to a decision of<br \/>\nthis Court in Shreejee Traco (I) Pvt. Ltd. v. Paperline International Inc.,<br \/>\n[2003] SCC 79.\n<\/p>\n<p>In this view of the matter and in view of the discussions made herein<br \/>\nabove, I am of the firm opinion that the award of the ICC arbitrator was<br \/>\nnot a domestic award but a foreign award as rightly held by the learned<br \/>\nSingle Judge of the High Court.\n<\/p>\n<p>Issue No. 4 : Whether HCL was given proper opportunity to present its case<br \/>\nbefore the ICC arbitrator ?\n<\/p>\n<p>Under Section 48 (1) (b) enforcement of a foreign award can be refused if :\n<\/p>\n<p>&#8220;(b) the party against whom the award is invoked was not given proper<br \/>\nnotice of the appointment of the arbitrator or of the arbitral proceedings<br \/>\nor was otherwise unable to present his case.&#8221;\n<\/p>\n<p>In the case at hand, HCL had the knowledge of appointment of the<br \/>\narbitrator. In fact, it had approached the Indian courts to stall the ICC<br \/>\narbitral proceedings. On a Special Leave Petition filed by Centrotrade<br \/>\nagainst the order of the Rajasthan High Court staying the ICC arbitral<br \/>\nproceedings, an order was passed by this Court by which the stay order of<br \/>\nthe Rajasthan High Court was vacated on 8th February 2001 and direction was<br \/>\ngiven for the ICC proceedings to continue in accordance with law.\n<\/p>\n<p>It is true, in his award, Mr. Jeremy Lionel Cooke, the ICC arbitrator has<br \/>\nnoted that he was appointed by ICC on 7th June 2000 and that HCL refused to<br \/>\nparticipate in the arbitral proceedings on the ground that the second<br \/>\narbitration clause in the contract was null and void. He directed<br \/>\nCentrotrade and HCL to file submissions and supporting evidence through<br \/>\norders dated 20th December 2000, 19th January 2001 and 3rd May 2001.<br \/>\nHowever, HCL did not comply with these orders. On 30th July 2001, he sent a<br \/>\nfax to HCL to find out whether they intended to file their defence. He sent<br \/>\na further fax on 9th August 2001 informing them that he was proceeding with<br \/>\nthe Award. Then on 11th August 2001, the ICC arbitrator received a reply<br \/>\nseeking extension of time. He granted time till 31st August 2001. He<br \/>\nreceived another request from HCL&#8217;s representatives on 27th August 2001 for<br \/>\nfurther extension of time. He granted extension till 12th September 2001.<br \/>\nHe received the first set of submissions filed by HCL, without supporting<br \/>\nevidence, on 13th September 2001. He considered those submissions and took<br \/>\nthem into account while making the award. He has further recorded in his<br \/>\naward that :\n<\/p>\n<p>&#8220;I made plain in my orders that no further material provided thereafter<br \/>\nwould be taken into account, and I have not done so&#8221;.\n<\/p>\n<p>This last statement indicates that he received further material from HCL,<br \/>\nwhich he did not consider while making the award. On the face of it, it<br \/>\nseems that HCL was given sufficient opportunity to present its case by the<br \/>\narbitrator. However, this question must be looked into from the then<br \/>\nexisting situation.\n<\/p>\n<p>It must be noted that this Court vacated the stay on the proceedings on 8th<br \/>\nFebruary 2001. The first direction of the ICC arbitrator to the parties,<br \/>\nafter the order of this Court on 8th February 2001, to serve submissions to<br \/>\nhim was made on 3rd May 2001, i.e. after a time gap of nearly 3 months. Co-<br \/>\noperation of HCL was next requested only on 30th July 2001, i.e. after a<br \/>\ntime gap of nearly 2 months. Then the communication on 9th August 2001<br \/>\nstated that the arbitrator was proceeding with the award. This time there<br \/>\nwas a response from HCL. Upon there requests, a time limit of nearly one<br \/>\nmonth ending on 12th September 2001, was given to HCL. The arbitrator<br \/>\nreceived first set of submissions filed by HCL on 13th September 2001. Then<br \/>\nhe made award 16 days later on 29th September 2001. It seems that between<br \/>\n13th and 29th September 2001, he did receive further material from HCL<br \/>\nwhich he did not consider while making the award on the ground that they<br \/>\nwere received after the time limit granted by him to HCL had lapsed.\n<\/p>\n<p>It is clear from the above lay out of facts that there have been delays in<br \/>\nthe arbitral proceedings right from the beginning when Centrotrade<br \/>\napproached in ICC on 22nd February 2000. Most of the delays were due to<br \/>\nHCL&#8217;s refusal to participate in the proceedings. However, there were some<br \/>\ndelays which cannot be related to HCL&#8217;s conduct. For instance, the period<br \/>\nfrom the 8th February 2001 when the order of this Court was made to 3rd May<br \/>\n2001 when the first direction of the arbitrator was made. The whole<br \/>\narbitral proceeding was conducted in a manner indicative of lack of<br \/>\nurgency. Further, I find merit in the submission of HCL that due to the<br \/>\ntotal dislocation of air traffic caused by the terrorist attack of 11th<br \/>\nSeptember 2001, the materials sent by HCL to the ICC arbitrator reached<br \/>\nlate. Under these circumstances, a delay of few days in serving their<br \/>\nsubmissions with supporting evidence, after having accepted to participate<br \/>\nin the arbitral proceedings, seems excusable and should have been excused.<br \/>\nConsidering the overall picture of the circumstances and the delays,<br \/>\nrefusal of the arbitrator to consider material received by him after 13th<br \/>\nSeptember 2001 and before 29th September 2001, seems to be based on a<br \/>\nfrivolous technicality. The arbitrator ought to have considered all the<br \/>\nmaterial received by him before he made the award on 29th September 2001.<br \/>\nConsidering the decisions in Hariom Maheshwari v. Vinit Kumar Parikh,<br \/>\n[2005] 1 SCC 379 and Minmetal Germany GmbH v. Ferco Steel Ltd., [1999] 1<br \/>\nAll ER (Comm.) 315, it is true that where a party is refused an adjournment<br \/>\nand where it is not prevented from presenting its case, it cannot,<br \/>\nnormally, claim violation of natural justice and denial of a fair hearing.<br \/>\nHowever, in the light of the delays, some of which were not attributable to<br \/>\nHCL&#8217;s conduct, it was only fair to excuse HCL&#8217;s lapse in filing the<br \/>\nrelevant material on time. Therefore, it can be said that HCL did not get a<br \/>\nfair hearing and could not effectively present its case.\n<\/p>\n<p>For the reasons aforesaid, I am of the view that HCL could not effectively<br \/>\npresent its case before the ICC arbitrator and therefore enforcement of the<br \/>\nICC award should be refused in view of section 48 (1)(b) of the Act.<br \/>\nAccordingly, the judgment of the Division Bench and also the judgment of<br \/>\nthe learned Single Judge of the Calcutta High Court must be set aside and<br \/>\nthe matter be remitted back to the ICC arbitrator for fresh disposal of the<br \/>\narbitral proceedings in accordance with law after giving fair and<br \/>\nreasonable opportunity to both the parties to present their cases before<br \/>\nhim. In view of the fact that I have set aside the award of the ICC<br \/>\narbitrator on the ground that HCL was unable to effectively present its<br \/>\ncase before the ICC arbitrator, in compliance with Section 48(1)(b) of the<br \/>\nAct, I direct the ICC arbitrator to pass a fresh award within three months<br \/>\nfrom the date of commencement of the fresh arbitral proceedings.\n<\/p>\n<p>Accordingly, both the appeals are disposed of.\n<\/p>\n<p>There will be no order as to costs.\n<\/p>\n<p>ORDER<\/p>\n<p>In view of difference of opinion, the matter is referred to a larger Bench<br \/>\nfor consideration. The Registry of this Court shall place the matter before<br \/>\nthe Hon&#8217;ble the Chief Justice for constitution of a larger Bench.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Supreme Court of India Centrotrade Minerals &amp; Metal Inc vs Hindustan Copper Ltd on 9 May, 2006 Author: T Chatterjee Bench: S.B. Sinha, Tarun Chatterjee CASE NO.: Appeal (civil) 2562 of 2006 PETITIONER: CENTROTRADE MINERALS &amp; METAL INC. RESPONDENT: HINDUSTAN COPPER LTD. DATE OF JUDGMENT: 09\/05\/2006 BENCH: S.B. SINHA &amp; TARUN CHATTERJEE JUDGMENT: JUDGMENT WITH [&hellip;]<\/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":[30],"tags":[],"class_list":["post-163264","post","type-post","status-publish","format-standard","hentry","category-supreme-court-of-india"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Centrotrade Minerals &amp; Metal Inc vs Hindustan Copper Ltd on 9 May, 2006 - Free Judgements of Supreme Court &amp; 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\/centrotrade-minerals-metal-inc-vs-hindustan-copper-ltd-on-9-may-2006\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Centrotrade Minerals &amp; 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