Tag: Commercial Dispute

No Interest on Delayed Payment Clause: Supreme Court Explains Its Limits
9Oct By The Legal ChamberNo Comments
Supreme Court

No Interest on Delayed Payment Clause: Supreme Court Explains Its Limits

This Supreme Court judgment clarifies that a contractual clause merely barring interest on delayed or disputed payments does not, by itself, expressly or by necessary implication prohibit an arbitral tribunal from awarding pendente lite interest. The power to award such interest under Section 31(7)(a) of the Arbitration and Conciliation Act, 1996, is only denuded if the agreement contains a clear and comprehensive bar. Facts Of The Case: The dispute arose from an arbitral award dated 21.11.2004, which directed the appellant, Oil and Natural Gas Corporation Ltd. (ONGC), to pay a total sum of USD 6,56,272.34 to the respondent, M/s G & T Beckfield Drilling Services Pvt. Ltd., for outstanding invoices and other claims. The arbitral tribunal rejected ONGC's preliminary objection to the ma...
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Supreme Court Ruling: Port Tariffs Must Be Set By Experts, Not Arbitrators
14Sep By The Legal ChamberNo Comments
Supreme Court

Supreme Court Ruling: Port Tariffs Must Be Set By Experts, Not Arbitrators

The Supreme Court held that tariff fixation for port facilities is a technical and expert-driven function, best adjudicated by specialized bodies like TAMP. It emphasized that contractual agreements cannot override statutory tariff-setting mechanisms under the Major Port Authorities Act, 2021. The Court remanded the matter to TAMP for fresh determination, underscoring the need for expert appraisal of tariff revisions and compliance with natural justice. Facts Of The Case: A bilateral agreement was executed in 1985 between Paradip Port Trust (now Authority) and Paradeep Phosphates Ltd. (PPL), then a public sector unit, for the exclusive use of a captive fertilizer berth. The agreement stipulated a tariff schedule, with a clause for future mutual enhancement. In 1993, the Port unilaterally...
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Death of a Partner Doesn’t End Business: Supreme Court Rules in Favor of Reconstituted Firm
22Jul By The Legal ChamberNo Comments
Supreme Court

Death of a Partner Doesn’t End Business: Supreme Court Rules in Favor of Reconstituted Firm

The Supreme Court upheld the Calcutta High Court’s decision, ruling that a partnership firm does not automatically dissolve upon a partner’s death if the partnership deed permits continuation with surviving partners. The Court held that Indian Oil Corporation (IOCL) could not arbitrarily stop kerosene supply without terminating the dealership agreement. It clarified that reconstitution of the firm does not require all legal heirs to join, emphasizing IOCL’s obligation to act fairly as a state instrumentality. The judgment reinforced that contractual terms and partnership deeds override rigid policy guidelines in commercial disputes. Facts Of The Case: The case involved a dispute between Indian Oil Corporation Limited (IOCL) and M/s Shree Niwas Ramgopal, a partnership firm operating as a ...
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Fraud Case Closed: Supreme Court Rules in Favor of Accused After Bank Settlement
13Jun By The Legal ChamberNo Comments
Supreme Court

Fraud Case Closed: Supreme Court Rules in Favor of Accused After Bank Settlement

The Supreme Court quashed criminal proceedings under Sections 120B, 420, 468, and 471 IPC, and Section 13(2) read with Section 13(1)(d) of the Prevention of Corruption Act, against the appellants. This decision was based on a comprehensive One Time Settlement with the Bank, full repayment of dues, and dismissal of recovery proceedings. The Court noted that continuing the proceedings would serve no purpose, especially given similar cases against co-accused were also quashed on grounds of settlement Facts Of The Case: N.S. Gnaneshwaran and N.S. Madanlal, accused nos. 3 and 6 respectively, are the appellants in this case. They were facing criminal proceedings in C.C. No. 16 of 2006, arising from FIR No. RC MA1 2005 0020, based on a complaint lodged by respondent no.2 - Bank on April 27, 2...
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“Can Courts Reject a Plaint for Skipping Mediation? :Supreme Court’s Strict Rule for Commercial Cases”
22May By The Legal ChamberNo Comments
Supreme Court

“Can Courts Reject a Plaint for Skipping Mediation? :Supreme Court’s Strict Rule for Commercial Cases”

The Supreme Court upheld the mandatory nature of Section 12A of the Commercial Courts Act, 2015, requiring pre-institution mediation for commercial suits unless urgent interim relief is sought. However, it clarified that non-compliance before August 20, 2022 (the date of its earlier ruling in Patil Automation) does not warrant plaint rejection—instead, courts may refer parties to mediation while keeping suits in abeyance. The judgment harmonizes procedural rigor with practical enforcement, ensuring mediation’s role in reducing litigation backlog without unduly penalizing past filings. Facts Of The Case: The case arose from a money suit filed by the Union of India against M/s Dhanbad Fuels Pvt. Ltd. in the Commercial Court, Alipore, seeking recovery of ₹8.73 crores as differential freight...
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