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FUERST DAY LAWSON LTD. versus JINDAL EXPORTS LTD.

Citation: [2011] 11 S.C.R. 1 · Decided: 08-07-2011 · Supreme Court of India · Bench: AFTAB ALAM · Disposal: Disposed off

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Judgment (excerpt)

[2011] 11 S.C.R. 1 
FUERST DAY LAWSON LTD. 
v. 
JINDAL EXPORTS LTD. 
(SLP (C) No. 11945 of 2010) 
JULY 8, 2011 
[AFTAB ALAM AND R.M. LODHA, JJ.] 
A 
B 
Arbitration and Conciliation Act, 1996 - ss. 50 and 49 -
Whether an order, though not appealable under s. 50 of the 
1996 Act, would nevertheless be subject to appeal under the C 
relevant provision of the Letters Patent of the High Court -
Held: No letters patent appeal will lie against an order which 
is not appealable under s.50 of the 1996 Act - Conclusion 
regarding exclusion of letters patent appeal arrived at in two 
different ways; one, so to say, on a micro basis by examining D 
the scheme devised by ss. 49 and 50 of the 1996 Act and 
the radical change that it brings about in the earlier provision 
of appeal under s. 6 of the 1961 Act and the other on a macro 
basis by taking into account the nature and character of the 
1996 Act as a self-contained and exhaustive code in itself -
E 
Where the special Act sets out a self-contained code the 
applicability of the general law procedure would be impliedly 
excluded - Foreign Awards (Recognition and Enforcement) 
Act, 1961 - s.6 - Letters Patent. 
Arbitration and Conciliation Act, 1996 - Part I and Part 
F 
II of the Act - Difference between - Held: Part I and Part II of 
the Act are quite different in their object and purpose and the 
respective schemes. 
Arbitration and Conciliation Act, 1996 - ss. 37 and 50 -
G 
Appellate provision uls. 37 and u/s. 50 - Difference between 
- Held: s137 in Part I of the Act (analogous to s. 39 of the 1940 
Act) is not comparable to s.50 in Part II of the Act - s.37 and 
s. 50 are not comparable because they belong to two different 
1 
H 
2 
SUPREME COURT REPORTS 
[2011] 11 S.C.R. 
A 
statutory schemes - s.37 containing the provision of appeal 
is part of a much larger framework that has provisions for the 
complete range of law concerning domestic arbitration and 
international commercial arbitration - s.50 on the other hand 
contains the provision of appeal in a much limited framework, 
B concerned only with the enforcement of New York Convention 
awards -
In one sense, the two sections, though each 
containing the appellate provision belong to different statutes. 
Arbitration and Conciliation Act, 1996 - Part II, Chapter 
C I - Provisions of, compared with the provisions of the Foreign 
Awards (Recognition and Enforcement) Act, 1961. 
The question that arose for consideration in the 
present batch of cases was whether an order, though not 
appealable under section 50 of the Arbitration and 
D Conciliation Act, 1996, would nevertheless be subject to 
appeal under the relevant provision of the Letters Patent 
of the High Court i.e. in other words, whether, even 
though the ยทArbitration Act does not envisage or permit 
an appeal from the order, the party aggrieved by it can 
E still have his way, by-passing the Act and taking recourse 
to another jurisdiction. 
Dismissing appeals arising from SLP (C) No.31068 of 
2009 and SLP (C) No.4648 of 2010 and allowing Civil 
F appeal no.36 of 2010, the Court 
HELD:1. A correct answer to the question under 
consideration would depend upon how the Arbitration 
and Conciliation Act, 1996 is to be viewed. Do the 
provisions of the 1996 Act constitute a complete code for 
G matters arising out of an arbitration proceeding, the 
making of the award and the enforcement of the award? 
If the answer to the question is in the affirmative then, 
obviously, all other jurisdictions, including the letters 
patent jurisdiction of the High Court would stand 
H excluded. [Paras 3, 4] [11-F-G; 12-A-B] 
FUERST DAY LAWSON LTD. v. JINDAL EXPORTS 
3 
LTD. 
2.1. Before the coming into fgrce of the Arbitration A 
and Conciliation Act, 1996 with effect from August 16, 
1996, the law relating to domestic arbitration was 
contained in the Arbitration Act, 1940, which in turn was 
brought in place of the Arbitration Act, 1899. Apart from 
the Arbitration Act 1940, there were two other enactments 
B 
of the same genre. One called the Arbitration (Protocol 
and Convention) Act, 1937 (for execution of the Geneva 
Convention Awards) and the other called the 'Foreign 
Awards (Recognition and Enforcement) Act, 1961 (for 
enforcement of the New York Convention awards). The c 
aforesaid three Acts were replaced by the Arbitration and 
Conciliation Act, 1996, which is based on the United 
Nations Commission on International Trade Law 
(UNCITRAL) Model and is broadly compatib

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