SUMITOMO HEAVY INDUSTRIES LTD. versus ONGC LTD. AND ORS.

Citation: [1997] SUPP. 6 S.C.R. 186 · Decided: 04-12-1997 · Supreme Court of India · Bench: J.S. VERMA · Disposal: Dismissed

Judgment (excerpt)

A 
SUMITOMO HEAVY INDUSTRIES LTD. 
v. 
ONGC LTD. AND ORS. 
DECEMBER 4, 1997 
B 
(J.S. VERMA, CJ, S.P. BHARUCHA AND S.C. SEN, JJ.] 
f 
Arbitration : 
Arbitration Act, 194(}-Sections 14(2) & 47-Contract to instal oil 
C platf 01111 at Bombay-Dispute-Arbitration at London-Award-Petition for 
direction to file the award in the High Cowt of Bombay-Allowed-On 
appeal, Held, the proceedings before the arbitrators concludes with the making 
of an award-curial law does not apply to the filing of an award-The 
contract between the parties to submit the dispute to the arbitrators and to 
honour the award are govemed by law of India-courts in India are entitled 
D to receive the award-Foreign Award (Recognition and Enforcement) Act, 
1961-Section 9(b ). 
The appellant and the first respondent entered into a contract to 
instal and commission on turnkey basis an oil platform at Bombay. The 
E contract stipulated in clause 17 that all the disputes or differences arising 
out of the contract shall be subject to the laws of India and the dispute 
between the parties shall be referred to arbitration and that the arbitration 
proceedings shall be held at London, U.K. in accordance with the 
provisions of International Chamber of Commerce. 
F 
A dispute arose and the appellant served a notice of arbitration to 
first respondent. The parties appointed their respective arbitrators and 
second respondent was nominated as an Umpire. The arbitrators having 
differed, the second respondent entered upon the reference and made his 
award. The first respondent filed a petition before the High Court of 
G Bombay for issuance of a direction to the second respondent to file the 
award in that Court. The said petition was allowed against which the 
present appeal has been filed. 
The contention of appellant was that a direction to the second 
respondent to file his award in the Court could be given only by the Courts 
H administering the curial law, i.e. the courts in England and thus the 
186 
SUMITOMO HEAVY INDUS. v. O.N.G.C. LTD. 
187 
petition filed by the first respondent in the High Court of Bombay fell A 
outside the jurisdiction of that Court. 
The contention of the first respondent was that the award having 
been made, the procedural or curial law had ceased to have effect and 
accordingly, the Courts administering the curial law had no jurisdiction 
to issue direction to file the award in Court. 
B 
Dismissing the appeal, this Court 
HELD : 1.1. Curial law does not apply to the filing of an award in 
the court. The Indian Arbitration Act, 1940 applies to the arbitration C 
agreement between the appellant and the first respondent and by reason 
of Section 14(2) thereof, the Courts in India are entitled to receive the 
award made by the second respondent. [198-D; 199-E] 
1.2. Curial law operates during the continuance of the proceedings 
before the arbitrator to govern the procedure and conduct thereof. The D 
Courts administering curial law have the authority to entertain applica-
tions by parties to arbitrations being conducted within their jurisdiction 
for the purpose of ensuring that the procedure that is adopted in the 
proceedings before the arbitrator conforms to the requirements of the 
curial law and for reliefs incidental thereto. Such authority of the Courts E 
administering the curial law ceases when the proceedings before the ar-
bitrator are concluded. The proceedings before the arbitrator commence 
when he enters upon the reference and condude with the making of the 
award. [196-B-D] 
1.3. An arbitrator is not obliged by law to file his award in Court but F 
he may be asked by the party seeking to enforce the award to do so. The 
enforcement process is subsequent to and independent of the proceedings 
before the arbitrator. It is not governed by the curial or procedural law 
that governed the procedure followed by the arbitrator in the conduct of 
the arbitration. [196-E-F] 
G 
,,,. 
2. The law which would apply to the filing of the award, to its 
enforcement and to its setting aside would be the law governing the 
agreement to arbitrate and the performance of that agreement. Having 
regard to the clear terms of Clause 17 of the contract between the appellant 
and the first respondent t!te. law governing the rights and obligations of H 
188 
SUPREME COURT REPORTS (1997] SUPP. 6 S.C.R. 
A the parties,arising from their agreement to arbitrate, and, in particular, 
their obligation to submit disputes to arbitration and to honou

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