Supreme Court of India · 1963-04-18
SOCIETE DE TRACTION ET D vs KAMANI ENGINEERING COMPANY LTD.
- Citation / case number
- SC 1963/152
- Court
- Supreme Court of India
- Petitioner
- SOCIETE DE TRACTION ET D
- Respondent
- KAMANI ENGINEERING COMPANY LTD.
- Author
- BHAGWATI, P.N. (),WANCHOO, K.N.,GUPTA, K.C. DAS,SHAHC.,AYYANGAR, N. RAJAGOPALA
- Bench
- BHAGWATI, P.N. (CJ),WANCHOO, K.N.,GUPTA, K.C. DAS,SHAH, J.C.,AYYANGAR, N. RAJAGOPALA
Judgment text excerpt
The Supreme Court held that Section 389 of the Indian Companies Act, 1956, mandates that all arbitration involving an Indian company must comply with the Indian Arbitration Act, 1940. The Court clarified that the arbitration clause in the agreement between the Indian company and the foreign company was invalid as it contravened the provisions of the Companies Act. Consequently, the High Court's refusal to stay the proceedings was upheld, affirming that the arbitration agreement was unenforceable under Indian law.