- (1.) Leave granted.
(2.) The National Thermal Power, Corporation (the 'NTPC') appeals from the judgment of the Delhi High Court in FAO (OS) No. 102/90 dismissing the NTPC's application filed under Sections 14, 30 and 33 of the Arbitration Act, 1940 (No. X of 1940) to set aside an interim award made at London by a tribunal constituted by the International Court of Arbitration of the International Chamber of Commerce (the "ICC Court") in terms of the contract made at New Delhi between the NTPC and the respondent - the Singer Company (the 'Singer') for the supply of equipment, erection and commissioning of certain works in India. The High Court held that the award was not governed by the Arbitration Act, 1940; the arbitration agreement on which the award was made was not governed by the law of India; the award fell within the ambit of the Foreign Awards (Recognition and Enforcement) Act, 1961 (Act 45 of 1961) (the Foreign Awards Act); London being the seat of arbitration, English Courts alone had jurisdiction to set aside the award; and, the Delhi High Court had no jurisdiction to entertain the application filed under the Arbitration Act, 1940.
(3.) The NTPC and the Singer entered into two formal agreements dated 17-8-1982 at New Delhi. The General Terms and Conditions of Contract dated 14-2-81 (the 'General Terms') are expressly incorporated in the agreements and they state : "the laws applicable to this Contract shall be the laws in force in India. The Courts of Delhi shall have exclusive jurisdiction in all matters arising under this Contract." (7.2). The General Terms deal with the special responsibilities of foreign contractors and Indian contractors. The Singer, being a -foreign contractor, is governed by the provisions relating to the foreign contractors. The General Terms further provide for settlement of disputes by amicable settlement, failing which by arbitration.;