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Section 16 Cases
Section 16 Cases
Indian Farmers Fertilizer Cooperative Ltd v. Bhadra Products : the jurisdiction has been interpreted
in a new light and features have been laid down to decide competent jurisdiction. Until these
conditions are satisfied, the tribunal has no jurisdiction to adjudicate the matter.
the mandatory procedure outlined in Clause 25 of the contract for resolving disputes before seeking
court intervention or arbitration. Failing to follow this procedure can result in the rejection of
arbitration applications as being without cause of action or premature. The court emphasizes on the
upholding contractual terms and discouraging unnecessary arbitrations through compliance with the
agreed procedure.
Tulip Hotels (P) Ltd. v. Trade Wings Ltd. :The court dismissed a petition for the appointment of an
arbitrator where the parties had failed to follow the prescribed pre-arbitral step of conciliation. The
Court held that where the parties agree to a specific procedure and mode for settling their dispute
by way of arbitration and prescribe certain preconditions for referring the matter to arbitration, they
must comply with those preconditions and only then can they refer the matter to arbitration.