FOOD CORPORATION OF INDIA Vs. INDIAN COUNCIL OF ARBITRATION
LAWS(SC)-2003-7-76
SUPREME COURT OF INDIA (FROM: DELHI)
Decided on July 17,2003

FOOD CORPORATION OF INDIA Appellant
VERSUS
INDIAN COUNCIL OF ARBITRATION Respondents

JUDGEMENT

D. Raju, J. - (1.) Special leave granted. These appeals are dealt with together since they involve identical questions for consideration on almost similar set of facts.
(2.) The appellants are the Food Corporation of India (hereinafter referred to as the FCI) and it had approached the Delhi High Court and thereafter this Court against the action of the Indian Council of Arbitration (hereinafter referred to as the ICA). In refusing, as conveyed in its letter dated 4-3-1998, to proceed with the arbitration claims till the FCI and the opposite parties therein (hereinafter called Millers) agree in writing afresh that the arbitration may be conducted under the Rules of Arbitration of the Indian Council of Arbitration. Therefore, the council and the concerned millers are arrayed in the respective cases, as respondents before this Court.
(3.) The FCI, in the course of its functions and day to day transaction of its business, entered into agreements with the millers for storage-cum-milling of FCI paddy stored in millers premises into conventional raw/parboiled rice and delivering the rice as per the out-turn stipulated for different varieties of paddy and delivery of the same in return for the payments to be made on the rates agreed to between them. The relevant contracts, apart from containing the detailed terms and conditions for carrying out thereof, also contained an uniform and standardized arbitration clause, for settlement of claims and disputes arising out of such contracts through the council. It appears, in some cases, that the council asked the FCI to forward the name of the sole arbitrator to the council for proceeding with the matter further and in yet another case the council asked the FCI to get the rice mills concerned to convey directly to the ICA their consent.;


Click here to view full judgement.
Copyright © Regent Computronics Pvt.Ltd.