MMTC LIMITED versus ANGLO AMERICAN METALLURGICAL COAL PVT. LIMITED

Citation: [2025] 11 S.C.R. 327 · Decided: 03-11-2025 · Supreme Court of India · Bench: SANJAY KUMAR · Disposal: Dismissed

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Judgment (excerpt)

[2025] 11 S.C.R. 327 : 2025 INSC 1279
MMTC Limited 
v. 
Anglo American Metallurgical Coal Pvt. Limited
(Civil Appeal No. 13321 of 2025)
03 November 2025
[Sanjay Kumar and K.V. Viswanathan,* JJ.]
Issue for Consideration
Issue arose whether the High Court was justified in not entertaining 
the objections filed by the appellant u/s.47 CPC and in dismissing 
the same; and whether at least prima facie the case of breach of 
fiduciary duty has been established by appellant.
Headnotes†
Arbitration and Conciliation Act, 1996 – ss.34, 37 – Code of Civil 
Procedure, 1908 – s.47 – Objections under – Maintainability – 
Long Term Agreement-LTA between the petitioner and the 
respondent – Respondent invoked arbitration clause claiming 
damages on account of the unlifted quantity of coal contracted 
by the appellant – Arbitration award passed in favour of 
the respondent – Challenge u/s.34 of the 1996 Act rejected 
by the Single Judge, however, the Division Bench allowed 
appellant’s appeal u/s.37 and set aside the arbitral award – In 
appeal before this Court, the judgment of the Division Bench 
set aside and that of the Single Judge restored as also the 
arbitral award – Review Petition filed by the appellant, admitted 
on the limited issue of interest – Subsequently, clarification 
application by the appellant disposed of – In the meantime, 
the respondent filed execution petition seeking enforcement 
of award and the appellant filed its objections u/s.47 CPC – 
When the Judgment was reserved, the appellant filed a suit 
praying that the award is void and unenforceable, however, the 
said suit was dismissed and the Executing Court dismissed 
the objections u/s.47 CPC as well as Ord. XXI r.29 application, 
seeking stay of execution, pending the suit – Challenge to:
Held: Objection petition u/s.47 should not invariably be treated 
as a commencement of a new trial – This Court has warned that 
* Author
328
[2025] 11 S.C.R.
Supreme Court Reports
there is a steady rise of proceedings akin to a retrial which causes 
failure of realization of the fruits of a decree, unless prima facie 
grounds are made out entertaining objections u/s.47 would be 
an abuse of process – On the material furnished, it cannot be 
said that the Senior Managerial personnel involved at the helm in 
appellant company during the relevant period acted in a manner 
as no reasonable personnel/director in the circumstances would 
have acted – It cannot be concluded that the decisions taken were 
not within the range of reasonableness or that the course adopted 
by them was not one, a reasonably competent personnel/director 
would adopt – Applying the business judgment rule, the course 
adopted by them cannot be said to be one to which a court of 
law would not defer to – Appellants have not been able to even 
prima facie demonstrate that circumstances exist to conclude that 
the personnel of appellant did not act in the best interest of the 
company – Appeal challenges, in the prayer clause, the judgment 
dismissing the objections, though in the prayer clause, no challenge 
to dismissal of the application u/Ord. XXI r.29 filed, in the civil appeal 
the appellants have indicated that they are aggrieved by the said 
order also – Ord. XXI r. 29 provides for stay of execution pending 
suit between decree holder and judgment debtor – However, the 
suit filed itself now stands rejected u/Ord. VII r.11 but a regular first 
appeal was filed – Hence, an occasion for considering an Ord. XXI 
r.29 application does not arise – Objection filed u/s.47 claiming 
that the award as upheld by this Court is inexecutable, is dealt 
with – Jurisdiction lies in a narrow compass – It is the mandate of 
this Court that the object of s.47 is to prevent unwarranted litigation 
and dispose of all objections as expeditiously as possible – No 
merit in the objections filed by the appellant – No good grounds 
to entertain the same. [Paras 95-98, 100]
Arbitration – Arbitration award – Execution Petition seeking 
enforcement of the Award by the respondent – Appellant-MMTC 
filing its objections u/s.47 CPC and when the Judgment was 
reserved, MMTC filed a suit praying that the award is void 
and unenforceable – However, the said suit was dismissed 
and MMTC filed application u/Ord. XXI r.29 CPC – Executing 
Court dismissed the objections as well as Order XXI Rule 29 
application – Postscript in relation thereto:
Held: Whether in Government, Public Sector Corporations or even 
in the private sector

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