- (1.) Leave granted.
(2.) This is an appeal against the judgment and order of the High court of karnataka at Bangalore passed in Miscellaneous First Appeal No. 478 of 1992.
(3.) An agreement was entered into between the appellant and the respondent towards delivering, taking, using etc. of oxygen on certain terms and conditions. Clause 7 of the agreement is the "force majeure". This clause provides that to the extent and during the period either of the parties is prevented from delivering or taking oxygen or using it in accordance with the agreement due to the operation of one or more of the force majeure events such as but not limited to the acts of God, war, revolution, floods, drought, earthquakes, strikes, lock-outs, conflagration, epidemics, riots, civil commotion, etc. , they shall be relieved of their respective obligations of delivering or taking and paying for such oxygen. The claim of the respondent was that during a certain period, it was unable to take oxygen as per the agreement because there were more than 70 per cent power cuts due to which it could not run its LD Plant which in turn depended upon the electric Pig Iron Furnace, which was highly power-oriented. On this premise, a dispute arose and an arbitrator was sought to be appointed. The appellant herein therefore moved the court under Section 20 of the Indian arbitration Act, 1940 successfully. An arbitrator was appointed. The respondent-Company took the matter in appeal before the High court who reversed the judgment of the trial court to some extent pertaining to some items in dispute.;