Supreme Court - Daily Orders
Echjay Industries Private Limited vs Indus Powertech Inc on 11 November, 2024
Author: Sanjay Kumar
Bench: Sanjay Kumar
IN THE SUPREME COURT OF INDIA
CIVIL APPELLATE JURISDICTION
CIVIL APPEAL NO. OF 2024
(arising out of SLP (C) No. 26479/2024)
ECHJAY INDUSTRIES PRIVATE LIMITED ..... APPELLANT(S)
VERSUS
INDUS POWERTECH INC. ..... RESPONDENT(S)
O R D E R
Leave granted.
We have heard the learned counsel for the parties. In view of the limited nature of the controversy before us, we need not refer to in detail the factual background. Suffice it to state that the appellant, Echjay Industries Private Limited, filed a petition/application under Section 9 of the Arbitration and Conciliation Act, 19961, in which the following interim relief, as prayed, was granted:
“(a) Pass an order or injunction as per the terms of the Master Supply Agreement, restraining the Respondent, its subsidiaries, affiliates office- bearers, members, representatives, agents or anyone acting on its behalf, from sourcing forgings/ engineering components/ parts/ products from RKFL and/or its subsidiaries, and/or any other forging company/ manufacturer/supplier in India other than the Petitioner, and from Signature Not Verified carrying out business approaching/communicating, Digitally signed by babita pandey Date: 2024.11.19 17:26:40 IST Reason: either directly or indirectly, knowingly or 1 For short, “1996 Act”.1
unknowingly with RKFL and/or its subsidiaries, and/or other forging companies in India to source forgings/parts/ engineering components/products.” The respondent, Indus Powertech Inc., filed an intra-court appeal. Thereafter, the interim order was set aside by the impugned judgment holding that it was in restraint of trade and hence hit by Section 27 of the Indian Contract Act, 18722.
A number of issues and contentions have been raised by the appellant on the applicability of Section 27. It is stated that, the curial law of England, and not Indian law, will be applicable as the seat of arbitration is in London. It is stated that the arbitration proceedings are still pending in London, wherein arguments have been addressed and the judgment/award has been reserved.
We are of the opinion that the legal issues, including the legality of the relevant clauses, would have to be decided in the arbitration proceedings.
At this stage, we direct that the parties shall be bound by clause nos. 3, 17 and 18 of the Master Supply Agreement dated 31.03.2015 executed between them till the arbitral tribunal renders its decision/award. However, the said bar/prohibition will not apply to either the appellant, Echjay Industries Private Limited, or the respondent, Indus Powertech Inc., in interacting with third parties for supply/sale of forgings by way of furnishing of samples. However, this would not mean that either party will be able to enter into a contract for supply/sale of forgings within 2 For short, “1872 Act”.
2 the lock-in period. If any sample is created or received by a party, that party will maintain the details of the same and said sample shall not be sold or transferred to a third party, except for the purpose of testing and validation.
We also record that the learned Senior Advocates appearing for the appellant and the respondent state that the lock-in period will come to an end on 26.07.2025.
The parties will be at liberty to approach the arbitral tribunal in case of any difficulty in implementation of the order passed by this Court.
Recording the aforesaid, the appeal is disposed of. Pending application(s), if any, shall stand disposed of.
..................J. (SANJIV KHANNA) ..................J. (SANJAY KUMAR) NEW DELHI;
NOVEMBER 11, 2024.
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ITEM NO.27 COURT NO.1 SECTION IX
S U P R E M E C O U R T O F I N D I A
RECORD OF PROCEEDINGS
Petition(s) for Special Leave to Appeal (C) No. 26479/2024
[Arising out of impugned final judgment and order dated 17-10-2024 in CAL No. 26031/2023 passed by the High Court of Judicature at Bombay] ECHJAY INDUSTRIES PRIVATE LIMITED Petitioner(s) VERSUS INDUS POWERTECH INC. Respondent(s) (FOR ADMISSION and IA No.255773/2024-PERMISSION TO FILE ADDITIONAL DOCUMENTS/FACTS/ANNEXURES) Date : 11-11-2024 This matter was called on for hearing today. CORAM :
HON'BLE THE CHIEF JUSTICE HON'BLE MR. JUSTICE SANJAY KUMAR For Petitioner(s) Mr. Neeraj Kishan Kaul, Adv.
Mr. Rahul Dwarkadas, Adv.
Mr. Areez Gazdar, Adv.
Ms. Shireen Mistry, Adv.
Mr. George P. Reji, Adv.
Ms. Anu Shrivastava, AOR For Respondent(s) Dr. Abhishek Manu Singhvi, Sr. Adv.
Mr. Maninder Singh, Sr. Adv.
Mr. Yoginder Handoo, AOR Ms. Bani Dikshit, Adv.
Mr. Avishkar Singhvi, Adv.
Mr. Ashwin Kataria, Adv.
Mr. Garvit Solanki, Adv.
Ms. Medha Gaur, Adv.
UPON hearing the counsel, the Court made the following O R D E R The appeal is disposed of in terms of the signed order.
Pending application(s), if any, shall stand disposed of.
(BABITA PANDEY) (R.S. NARAYANAN) COURT MASTER (SH) ASSISTANT REGISTRAR
(Signed order is placed on the file) 4