Professional Documents
Culture Documents
Before
THEHON’BLE SUPREME COURT OF BHARAT
(Filed under Article 136 of the Constitution of India, 1950)
SLP No……. 2023
Versus
1. Index of Authorities.......................................................................................................3
2. Statement of Facts..........................................................................................................4
4. Summary of Arguments.................................................................................................5
5. Written Pleadings...........................................................................................................6
I. Whether the Hon'ble High Court has jurisdiction under Section 11(6A) of the
Arbitration and Conciliation Act, 1996 to conclusively determine the existence and
Validity of the arbitration agreement?............................................................................6
II. Whether the term "not thereafter" used in the Dispute Resolution Clause can't
interpreted to restrict the Petitioner ICPL from invoking Successive Arbitration for
subsequent dispute arising between the same parties under the same contract?
6. Prayer.............................................................................................................................14
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INDEX OF AUTHORITIES
Indian Cases
20. Gammon India Ltd. &Ors. vs National Highways Authority Of ... on 23 June, 2020……12
21. M.A. and Sons vs. Madras Oil and Seeds Exchange Ltd. and Anr. AIR 1965 Mad 392…..12
22. Dolphin Drilling Ltd. Vs. ONGC. (2010) 3 SCC 267…...………………………13
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STATEMENT OF FACTS
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APPEAL TO SUPREME COURT: Dissatisfied with the High Court's decision, ICPL has
appealed to the Supreme Court of Bharat, and the matter is scheduled for a hearing on
02.09.2023.
I. Whether the Hon’ble High Court has jurisdiction under Section 11(6A) of the
Arbitration and Conciliation Act, 1996 to conclusively determine the existence and
validity of the arbitration agreement?
II. Whether the term “not thereafter” used in the Dispute Resolution Clause can
interpreted to restrict the Petitioner ICPL from invoking Successive Arbitration for
subsequent dispute arising between the same parties under the same contract?
SUMMARY OF ARGUMENTS
I. Whether the Hon’ble High Court has jurisdiction under Section 11(6A) of the Arbitration
and Conciliation Act, 1996 to conclusively determine the existence and validity of the
arbitration agreement?
It is humbly submitted before the Hon’Ble SC of India that Hon’ble High Courthas
Jurisdiction only to determine the existence and not of validity under 11(6A) of the
Arbitration and Conciliation,1996. It is the violation of the doctrine of Kompetenz-
Kompetenz if it does so. The legislative intent behind this section also states so to aiming
the minimal judicial intervention in arbitration proceeding. Variousindian judgements and
International approaches substantiate the fact that jurisdiction of the court is confine to
determine only the existence of the arbitration agreement.
II. Whether the term “not thereafter” used in the Dispute Resolution Clause can interpreted
to restrict the Petitioner ICPL from invoking Successive Arbitration for subsequent
dispute arising between the same parties under the same contract?
It is humbly submitted before the Hon’ble SC that there is no bar under order 2 rule 2 of
CPC to invoke successive arbitration for subsequent dispute as subsequent dispute
doesn’t Fulfill the required condition of above. It is totally different claim and issue for
which the party is seeking the relief. Successive arbitration is at par with the natural
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justice.
WRITTEN PLEADINGS
1. It is humbly submitted that the Hon’ble High Court has jurisdiction under section 11(6A)
of the Arbitration and Conciliation Act, 1996 to conclusively determine only the existence
and not the validity of the arbitration agreement. This contention can be substantiated by a
six-fold argument:
[A]THE COURT’S JURISDICTION IS LIMITED TO DETERMINE EXISTANCE ONLY
2. Section 11(6A) of the Act states: that the Supreme Court or, as the case may be, the High
Court, while considering any application under sub-section (4) or sub-section (5) or sub-
section (6), shall, notwithstanding any judgment, decree or order of any Court, confine to the
examination of the existence of an arbitration agreement." The scope of examination under
this section was discussed by the Supreme Court that while examining a petition under
Section 11(6A) of the Act, the Court would confine itself only to examining the existence of
an Arbitration Agreement between the parties and no more. The Court also laid down a
single test for such examination and observed that the only requirement was to see if the
contract between the parties contained an Arbitration Clause. 1 In another case the Supreme
Court held that the court can only determine the 'existence' of an arbitration agreement only
and all other preliminary issues have to be left to be decided by the Tribunal under Section
16 of the Act.2;
[B] IT IS IN VIOLATION OF THE DOCTRINE OF “KOMPETENZ-KOMPETENZ
3. It is in violation of the doctrine of "kompetenz-kompetenz", also referred to as
"compétence-compétence", implies that the Arbitral Tribunal is empowered and has the
competence to rule on its own jurisdiction, including determining all jurisdictional issues,
and the existence or validity of the arbitration agreement. This doctrine is intended to
minimise judicial intervention, so that the arbitral process is not thwarted at the threshold,
when a preliminary objection is raised by one of the parties.3
The report recommended the insertion of sub-section (6A) to Section 11 of the Arbitration &
Conciliation Act, which read as follows, "An appointment under sub-section (4) or sub-
section (5) or sub-section (6) shall not be made only if the Court finds that the arbitration
agreement does not exist or is null and void."4 This was to mean that if a "… Court is prima
facie satisfied regarding the existence of an arbitration agreement, it shall refer the parties to
arbitration and leave the final determination of the existence of the arbitration agreement to
the arbitral tribunal in accordance with section 16, which shall decide the same as a
preliminary issue."5 This envisaged the same process of determination as is reflected in
Section 8 of the Arbitration & Conciliation Act, which deals with a judicial authority's
power to refer parties to arbitration where there is an arbitration agreement.6
The Commission prescribed similar tests as applicable in the context of Section 8 for
Sections 11 and 45 to ensure that the scope and nature of judicial intervention do not change
upon whether a party (intending to defeat the arbitration agreement) refuses to appoint an
arbitrator in terms of the arbitration agreement, or moves a proceeding before a judicial
authority in the face of such an arbitration agreement. 5 Hence, the test to determine the scope
of judicial intervention should not differ if parties approach the judicial authority under
Section 11(6) instead of Section 8, or vice-versa. The amended Section 8(1) of the
Arbitration & Conciliation Act states that "a judicial authority .. shall .. refer the parties to
arbitration unless it finds that prima facie no valid arbitration agreement exists." Hence, the
scope of this judicial intervention is restricted to situations where the judicial authority prima
facie finds that a valid arbitration agreement does not exist. 6
It is submitted that a similar test should be applied while dealing with Section 11(6A)
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applications. This means that if the judicial authority is prima facie satisfied against the
argument challenging the arbitration agreement, it shall appoint the arbitrator and/or refer the
parties to arbitration, as the case may be. This exposition is in line with the Supreme Court's
decision where it ruled in favour of looking at the issues only prima facie in context of
Section 45 of the Arbitration & Conciliation Act.7
In furtherance of this, a 3-judge bench of the Supreme Court recently held that the prima
facie test has been read into Section 11(6A) to bring the provisions of Sections 8(1) and
11(6) r/w 11(6A) on par.8
In another case10, Supreme court laid down another test as follows- “1. the issues(first
category) which Chief Justice/his designate will have to decide are: (a) Whether the party
making the application has approached the appropriate High Court? (b) Whether there is an
arbitration agreement and whether the party who has applied under section 11 of the Act, is a
party to such an agreement? 2. The issues (second category) which the Chief Justice/his
designate should may choose to decide are: (a) Whether the claim is a dead claim or a live
claim? (b) Whether the parties have concluded the contract/transaction by recording
satisfaction of their mutual rights and obligation or by receiving the final payment without
objection? 3. The issue (third category) which the Chief Justice/his designate should leave
exclusively to the arbitral tribunal is: (a) Whether a claim falls within the arbitration
clause(as for example, a matter which is reserved for final decision of a departmental
authority and excepted or excluded from arbitration)? (b) Merits of any claim involved in the
arbitration.”
7. Shin Etsu Chemicals Co. Ltd. v Aksh Optifibre, (2005) 7 SCC 234
8. Pravin Electricals Pvt. Ltd. v. Galaxy Infra and Engineering Pvt. Ltd., LL 2021 SC 147
A crucial aspect of statutory interpretation is discerning the legislative intent behind the
provision. Section 11 6A was designed the streamline the process of appointing the
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arbitrators and disputes arise regarding the appointments. The provision is explicit in
purpose of addressing the scenario where parties are unable to agree on an arbitrator. The
legislature emphasizes on court role as a facilitator of appointment suggest that its
jurisdiction is intentionally circumscribed to the preliminary issue of existence. The
provision does not confer a broader mandate upon the court to examine the validity and
legality of arbitration agreement. The absence of any language indicating the court authority
to validate the agreement strongly suggest that the legislature intended to maintain a limited
scope for court involvement.
Sections like 8 & 45 explicitly provide for court intervention in determining the validity and
enforceability of arbitration agreements or awards respectively. Given this specific provision
it is reasonable to infer that if the legislature intended for the court to validate the agreement
under section 11 6A, it would have expressly provided for such jurisdiction10.
SMS Tea Estate (P.) Ltd. v. Chandmari Tea Co. (P.) Ltd., 2011 (14) SCC 66
11.NN Global Mercantile v Indo Unique Flame , 2021 (1) CTC 868.
12. Swiss Timing Limited v Organising committee, Commonwealth Game, Delhi, 2014 SCC
14. Swiss Fed. Trib., 29 April 1996, Fondation M. v. Banque X., ATF 122 m 139,1996(3) ASA Bull. 527.
15. Cass, le civ., 26 June 2001, American Bureau of Shipping (ABS) v. Copropriété Maritime Jules Verne, 2001(3) Rev. arb.
16 .PremiumNafta Products Ltd. v. Fili Shipping Co. Ltd. [2007] UKHL 40;
Silver Dry Bulk Co. Ltd. v. Homer Hulbert Maritime Co. Ltd., [2017] EWHC 44 (Comm).
17. Sup. Ct. Canada, Dell Computer Corp. v. Union des consommateurs, 13 hily 2007,2007 SCC 34,2007
If the Registrar so determines, the Court shall decide if it is prima facie satisfied that the
arbitration shall proceed. The arbitration shall be terminated if the Court is not so satisfied.
Any decision by the Registrar or the Court that the arbitration shall proceed is without
prejudice to the power of the Tribunal to rule on its own jurisdiction.
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II. WHETHERTHE TERM “NOT THEREAFTER” USED IN THERESOLUTION
CLAUSEINTERPRETED TO RESTRICTTHE PETITIONER ICPL FROM INVOKING
SUCCESIVEARBITRATION FOR SUBSQUENTDISPUTE ARISING BETWEEBN THE
SAME PARTIESUNDER THE SAME CONTRACT?
The Hon'ble Delhi High Court, while dealing with a Section 11 of the Act, wherein the
Respondent declined to appoint an arbitrator on the ground that the dispute between the
parties have already been addressed by the Arbitral Tribunal and stood concluded by the
Arbitral Award. The Court held that the legislature by amending the Act by way of the
Arbitration and Conciliation (Amendment Act) 2015 and the insertion of Section 11(6A) of
the Act has also restricted the scrutiny of the Court at the stage of adjudicating an application
under Section 11 of the Act only to the existence of the Arbitration Agreement. The Court
further observed that an Arbitration agreement can be invoked any number of times and does
not cease to exist "only with the invocation for the first time."18
18.
Parsvnath Developers Limited &Anr. vs. Rail Land Development Authority, 2018, Delhi High Court
If the successive arbitrations involve distinct claims or issues that were not addressed in the
previousarbitration, res judicata might not apply. Res judicata generally requires that the
same cause of action or issue has been fully litigated and decided in the previous case.
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The Delhi High Court while acknowledging that the perusal of the provisions of the Act
stated that the statute envisages that disputes can be raised at different stages and there can
be multiple arbitrations in respect of a single contract, however, criticized such multiplicity
of arbitral forums arising out of single contract and adjudicating upon overlapping disputes
functioning parallels. The court further held that:
The endeavour of courts in the domain of civil litigation is always to ensure that claims of
parties are adjudicated together, or if they involve overlapping issues, the subsequent suit is
stayed until the decision in the first suit. It is with the intention of avoiding multiplicity that
the principles enshrined in Order 2 Rule 2 of the Code of Civil Procedure (“CPC”), Section
10 of CPC and res judicata are a part of the CPC from times immemorial. As arbitral
proceedings are strictly not governed by the CPC, it is possible for parties to invoke
arbitration as and when the disputes arise. The underlying ratio in the case of Dolphin
Drilling Limited case,19 enumerates that all disputes that are in existence when the
arbitration clause is invoked, ought to be raised and referred at one go. Though, there is no
doubt that multiple arbitrations are permissible, it would be completely contrary to public
policy to permit parties to raise claims as per their own convenience.
It is possible that subsequent disputes may arise which may require a second reference,
however, if a party does not raise claims which exist on the date of invocation, it ought not
to be given another chance to raise it subsequently unless there are legally sustainable
grounds.20
19.
Dolphin Drilling Limited. v. ONGC, AIR 2010 SC 1296
20.
Gammon India Ltd. &Ors. vs National Highways Authority Of ... on 23 June, 2020
21.
M.A. and Sons vs. Madras Oil and Seeds Exchange Ltd. and Anr. AIR 1965 Mad 392
In this case, the Court observed that there can be no doubt whatever that the appeal is a
creature of statute, and is a remedy that does not merely or automatically flow in favour of a
party upon any principle of natural justice or as part of the incidents of common law. It is
perfectly legal to provide for different stages of arbitration, such as, from a single arbitrator
to a committee of appeal. It is the award which finally emerges from this procedure which is
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conclusive as between the parties and not liable to be set aside, except as provided for in
Section 30 of the Arbitration Act of 1940. The legal pursuit of successive remedies will
make them all proceedings 'connected by an intrinsic unity' and 'to be regarded as one legal
proceedings.
[D] INTERPRETING “NOT THEREAFTER”
In legal terms, the phrase “not thereafter” refers to a particular point in time after which an
action or event can not occur. When the phrase is used in a legal provision or contract, it
generally signifies a time limitation or deadline. However, it does not necessarily imply that
successive proceedings are barred.
It is important to note that the interpretation of a legal provision or contract is subjective and
depends on the specific context and language used. The Hon’ble Court has address the
scenairo in the relevant case ,22 in case a dispute has arisen and arbitration is needed to be
invoked , the party invoking the arbitration has to include all the claims that have already
arisen on the date of invocation of the arbitration proceedings should be included; Same as
second issue arises after the first notice so here not thereafter used in dispute resolution
clause does not barred ICPL for successive arbitration.
22.
Dolphin Drilling Ltd. Vs. ONGC . (2010) 3 SCC 267
PRAYER
Whereby, in the light of the facts stated, issues raised, arguments advanced and authorities
cited, it is most humbly prayed and implored before the Hon’ble Supreme Court of India to
graciously adjudge and be pleased to:
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1) UPHOLD the principles of fairness, equity, and justice by allowing the
Appellant's legitimate concerns arising from the second phase of the project to
be duly heard and adjudicated through proper arbitration proceedings.
And/or
Pass any other order sit deems fit in the interest of justice, equity and good conscience.
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