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Shelaji Vanaji Sanghvi Exports vs National Commodities Trading Company on 19 September, 2022

Bench: Chief Justice, Ajay Rastogi, S. Ravindra Bhat

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                                       IN THE SUPREME COURT OF INDIA

                                         CIVIL ORIGINAL JURISDICTION

                                     ARBITRATION PETITION NO.10 OF 2020


     SHELAJI VANAJI SANGHVI EXPORTS                                            …PETITIONER

                                                       VERSUS

     NATIONAL COMMODITIES TRADING COMPANY                                      …RESPONDENT



                                                       ORDER

1. This petition under Section 11(6) read with Section 11(12) of the Arbitration and Conciliation Act, 1996 (for short, “the 1996 Act”) seeks appointment of a sole Arbitrator to decide the disputes and differences, which have arisen between the petitioner and the respondent in connection with export of white sugar from India to Saudi Arabia in terms of contract dated 4.2.2019, a copy of which has been appended as Annexure P-1 to the instant petition.

2. The aforesaid contract dated 4.2.2019 stipulates that any dispute which has arisen out of or in connection with the said contract shall be referred to and finally disposed of by arbitration. Clause 11 of the contract dealing with arbitration is to the following effect: -

Digitally signed by NEETU KHAJURIA Date: 2022.09.21

“11. ANY DISPUTE ARISING OUT OF OR IN CONNECTION WITH 14:37:10 IST Reason: THIS CONTRACT, INCLUDING ANY QUESTION REGARDING ITS EXISTENCE, VALIDITY OR TERMINATION, SHALL BE REFERRED TO & FINALLY RESOLVED BY ARBITRATION IN INDIA IN ACCORDANCE WITH THE ARBITRATION RULES OF INDIA FOR THE TIME BEING IN FORCE WHICH RULES ARE DEEMED TO BE INCORPORATED BY  2 REFERENCE INTO THIS CLAUSE.

THIS CONTRACT SHALL BE GOVERNED BY THE LAWS OF INDIA AND THE PARTIES HEREBY SUBMIT TO THE JURISDICTION OF RELEVANT COURT OF KOLHAPUR, MH, INDIA.”

3. Notice was ordered to be issued in the instant petition vide order dated 22.5.2020. According to the Office Report dated 16.9.2022, the service of show-cause notice upon the concerned respondent is complete. However, said respondent has chosen not to enter appearance in the matter. There is, thus no contest to the submissions advanced in the petition.

4. We have gone through the petition, which sets out the circumstances pertaining to the execution of contract, existence of arbitration clause in the agreement and those in which the disputes or differences have arisen between the parties. Having gone through the record and considered the submissions advanced on behalf of the petitioner, we are convinced that the case for appointment of a sole arbitrator in terms of aforestated clause 11 of the contract to adjudicate upon the disputes and differences which have arisen between the parties, is certainly made out.

5. We, therefore, allow this petition and direct as under: -

(a) Hon’ble Mr. Justice Suresh Gupte (Retd.) is appointed as sole Arbitrator to decide upon the disputes and differences which have arisen between the petitioner and the respondent herein.

(b) The learned Arbitrator is at liberty to charge remuneration purely in accordance with law.

(c) The learned Arbitrator shall make appropriate disclosures in accordance with law.

(d) The learned Arbitrator may issue notice to the parties and fix up schedule for completion of proceedings.

The present petition is thus disposed of.

..........................................CJI.

[UDAY UMESH LALIT] ..…........................................J. [AJAY RASTOGI] .….........................................J. [S. RAVINDRA BHAT] NEW DELHI;

SEPTEMBER 19, 2022
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ITEM NO.43                COURT NO.1                 SECTION XVI-A

                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 Arbitration (Civil)    No(s).   10/2020

 SHELAJI VANAJI SANGHVI EXPORTS                        Petitioner(s)

                                  VERSUS

NATIONAL COMMODITIES TRADING COMPANY                  Respondent(s)

(IA No. 32464/2020 - EXEMPTION FROM FILING C/C OF THE IMPUGNED JUDGMENT) Date : 19-09-2022 These matters were called on for hearing today. CORAM :

HON'BLE THE CHIEF JUSTICE HON'BLE MR. JUSTICE AJAY RASTOGI HON'BLE MR. JUSTICE S. RAVINDRA BHAT For Petitioner(s) Ms. Ekta Bhasin, Adv.

Mr. Ashok Mathur, AOR For Respondent(s) UPON hearing the counsel the Court made the following O R D E R The Arbitration Petition is disposed of in terms of the signed order.

Pending applications, if any, shall stand disposed of.

(INDU MARWAH)                                   (VIRENDER SINGH)
COURT MASTER (SH)                                BRANCH OFFICER
                (SIGNED ORDER IS PLACED ON THE FILE)