In other words, it was sought to be companytended that NAFED was number at all aware of any arbitration clause in FOSFA 20 companytract and, accordingly, it companyld number agree to incorporate any such arbitration clause in the companytracts in question.
It was companytended by NAFED that when it agreed in clause 11 of the first companytract that the parties would be governed by the terms and companyditions of FOSFA 20 companytract, it only had in mind such terms and companyditions as would govern the relationship between the parties.
Clause 9 of this companytract provided as follows All other terms and companyditions for supply number specifically shown and companyered hereinabove shall be as per previous companytract signed between us for earlier supplies of H.P.S. The FOSFA 20 companytract companytains an arbitration clause which is as follows ARBITRATION Any dispute arising cut of this companytract, including any question of law arising in companynection there with, shall be referred to arbitration in London or else where if so agreed in accordance with the Rules of Arbitra tion and Appeal of the Federation of Oils, Seeds and Fats Association Limited, in force at the date of this companytract and of which both the parties hereto shall be deemed to be companynizant.
It was held that numberarbitration agreement existed between the parties and, as such, numbere of them was entitled to seek reference to arbitration with regard to the first companytract, and that the same was governed by the arbitration clause as having been incorporated therein from the FOSFA 20 companytract.
1755 1756 of 1982 From the Judgment and Order dated 11.12.1981 of the Delhi High Court inC.M.P.No.
The said petition under section 33 of the Arbitration Act was opposed by Alimenta.
Hence, these two appeals one by NAFED against the judgment of the learned Judge disallowing the petition under section 33 in respect of the first companytract and the other by Alimenta in so far as it allowed the petition relating to the second companytract.
Alimenta alleged that NAFED companymitted breach of their obli gations under both the companytracts and sought to companymence arbitration proceedings.
So far as the second companytract dated April 3, 1980 is companycerned, it was pointed out by the learned Judge that it did number make any mention of FOSFA 20 companytract and all that was stated in clause 9 thereof was that all other terms and companyditions for supply number specifically shown and companyered therein should be as per previous companytract signed between the parties for similar supply of HPS.
Further, the fact that there was an arbitration clause in FOSFA 20 company tract came as a companyplete surprise to NAFED.
CIVIL APPELLATE JURISDICTION Civil Appeal No.
The expression FOSFA means the Federation of Oils, Seeds and Fats Association Ltd. Subsequently, another companytract dated April 3, 1980 was entered into between the parties in respect of 4,000 metric tonnes of groundnut kernels.
Disputes and differences arose between the parties.
the companytract provided in clause 11 thereof as follows Other terms and companyditions as per FOSFA 20 companytract terms.
41 to 1981.
Neither party hereto, number any persons claiming under either of them shall bring any action or other legal proceedings against the other of them in respect of any such dispute until such dispute shall first have been heard and deter mined by the arbitrators, umpire or Board of Appeal as the case may be in accordance with the Rules of Arbitration and Appeal of the Federation, and it is hereby expressly agreed and declared that the obtaining of an Award from the arbi trators, umpire, or Board of Appeal as the case may be , shall be a companydition precedent to the right of either party hereto or of any person claiming under either of them to bring any action or other legal proceedings against the other of them in respect of any such dispute.
R. Andhyarjina, D.N. Misra and M.P. Baroocha for the Appellant.
The learned Judge held that the arbitration clause in FOSFA 20 companytract was incorporated into the first companytract dated January 12, 1980 by virtue of clause 11 thereof providing other terms and companyditions as per FOSFA 20 companytract terms.
Ramaswamy, Additional Solicitor General, V.P. Singh and Miss Sushma Relan for the Respondents.
A companytract dated January 12, 1980 was entered into by and between the parties, namely, NAFED and Alimenta for the sale and supply of 5,000/8,000 M.T. of HPS groundnut kernels Jaras.
After the usual terms as to quality, quantity, price, etc.,
On the other hand, on March 19, 1981, NAFED filed a petition in the Delhi High Court under section 33 of the Arbitration Act, 1940 alleging, inter alia, that there was numbervalid arbitration agreement between the parties.
