LexM/S. CAUVERY COFFEE TRADERS, MANGALORE versus M/S. HORNOR RESOURCES (INTERN.) CO. LTD.
Open in Lexace · Ask the AI about this caseJudgment (excerpt)
[2011) 12 S.C.R. 473 MIS. CAUVERY COFFEE TRADERS, MANGALORE A v. MIS. HORNOR RESOURCES (INTERN.) CO. LTD. Arbitration Petition Nos. 7 & 8 of 2009 SEPTEMBER 13, 2011 IDR. B.S. CHAUHAN, J.] Arbitration and Conciliation Act, 1996: B s. 11 - Appointment of arbitrator - Purchase Agreement c >etween applicant-seller and respondent-buyer providing that -he quality of iron ore supplied must contain 63% Fe content ~lse the respondent would have right to reject the cargo - 'Jonsignment received by respondent contained 62. 74% - =?.espondent informed the applicant that USO 1.5 million would D Je released for the shipment in place of USO 1.8 million in ul/ and final settlement and in case the applicant was willing 'o accept the same, it should ·send instructions through its 'Janker :..__.Applicant received USO' 1.5 million and demanded 'he balance amount on the ground that an erroneous E nessage was forwarded by its bankers to the respondent that 'he applicant had agreed to receive the less payment towards 'ull and final payment - Respondent did not give response - 4.pplication for appointment of arbit(ator - Maintainability of - Held: The applicant did not plead that there was any kind 'Jf misrepresentation or fraud or coercion on the part of the F respondent - Nor it was its case that payment was sent by the respondent without any settlement/agreement with the 1app/icant, and was a unilateral act on their part - The applicant reached the final settlement with its eyes open and instructed iits banker to accept the money as proposed by the respondent G - Proposal itself was on the basis of terms of the Purchase Agreement which provided for Price Adjustment - In such a fact-situation, the plea that instructions were given by the applicant to the banker erroneously was an afterthought - The 473 H 474 SUPREME COURT REPORTS (2011) 12 S.C.R. A transaction stood concluded between the parties, not on account of any unintentional error, but after extensive and exhaustive bilateral deliberations with a clear intention to bring about a quietus to the dispute - These negotiations were self-explanatory steps of the intent and conduct of the parties B to end the dispute and not to carry it further- Since no dispute survived between the parties, application seeking appointment of arbitrator liable to be dismissed. Part I - Applicability of, to international commercial arbitrations held outside India - Held: The provisions of Part C I of the Act would be equally applicable to international commercial arbitrations held outside India, unless any of the said provisions are excluded by agreement between the parties expressly or by implication. D DOCTRINES/PRINCIPLES: Doctrine of estoppel - Approbation and reprobation - Held: A party cannot be permitted to "blow hot and cold''. "fast and loose" or "approbate and reprobate" - Where one knowingly accepts the benefits of a contract or conveyance or an order, is estopped to deny E the validity or binding effect on him of such contract or conveyance or order - This rule is applied to do equity, however, it must not be applied in a manner as to violate the principles of right and good conscience - The doctrine of election is based on the rule of estoppel - the principle that F one cannot approbate and reprobate inheres in it - The doctrine of estoppel by election is one of the species of estoppels in pais (or equitable estoppel), which is a rule in equity- By that law, a person may be precluded by his actions or conduct or silence when it is his duty to speak, from G asserting a right which he otherwise would have had. WORDS AND PHRASES: Word 'error' - Meaning of. On 24.6.2008, a Purchase Contract was entered into between the applicant and the respondent wherein the H. applicant agreed to sell to the respondent Calibrated CAWERY COFFEE TRADERS, MANGALORE v. HORNOR 4 75 RESOURCES (INTERN.) CO. LTD. Lumpy Ore Fines of the approximate quantity of 40,000/- A Wet Metric (10% more or less at buyers' option) at the price and on the terms and conditions stipulated in the said agreement. The agreement provided for the chemical specification/composition of the Ore and for guaranteed level of Fe i.e. iron content in the contracted goods which B could not be less than 63% and in case the iron content was less than 63%, the buyer would have a right to reject the cargo. Pursuant to the purchase contract, the applicant on C 6.8.20
Excerpt shown. Read the full judgment & AI analysis in Lexace.