In Brief
Coal India Limited issued a 2007 Scheme for e-auction sale of coal, which contained an arbitration clause for disputes. Giriraj Garg participated in e-auctions under this scheme and received individual sale orders but failed to lift the coal within the stipulated period. Coal India forfeited his deposit, claiming breach of terms. When Garg invoked the scheme's arbitration clause, Coal India refused to appoint an arbitrator. The High Court rejected Garg's petition, holding that individual sale orders did not reference the arbitration clause. The Supreme Court reversed this decision, holding that the arbitration clause in the parent 2007 Scheme is incorporated by reference into individual sale orders since those orders expressly state they are governed by the scheme's guidelines and instructions. The Court appointed a retired judge as sole arbitrator to resolve the dispute.
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