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Supreme Court of India 2022-07-20 partly_allowed

Indian Oil Corporation Limited vs NCC Limited

Bench: 2 — M.R. Shah, B.V. Nagarathna

In Brief

IOCL engaged NCC to perform civil and structural works. Disputes arose over extension of time and price adjustments for delay. NCC withdrew its claims under alleged duress and accepted payment with price adjustment, but later sought to revive them via arbitration. The Supreme Court held that NCC's claims, being neither Notified Claims as per contract procedures nor included in the final bill, fell outside the arbitration agreement. However, the accord-and-satisfaction defence, being seriously disputed, must be decided by the Arbitrator under Section 16. The Court allowed NCC's appeal partly, permitting arbitration only for claims the General Manager declared as Notified Claims.", <parameter name="cited_cases">[ { "raw_citation": "(2017) 2 SCC 228", "case_name": "Centrotrade Minerals & Metal Inc. v. Hindustan Copper Ltd.", "cited_year": "2017", "paragraph": "8.1, 10.4", "treatment": "relied", "treatment_by": "this_court", "treatment_quote": "party autonomy is the backbone of arbitration and the terms of the contract have to be interpreted in the way the parties wanted and intended them to be" }, { "raw_citation": "(2018) 17 SCC 607", "case_name": "United India Insurance Co. Ltd. v. Hyundai Engg. & Construction Co. Ltd.", "cited_year": "2018", "paragraph": "8.4, 10.10", "treatment": "relied", "treatment_by": "this_court" }, { "raw_citation": "[2021 SCC Online SC 781]", "case_name": "DLF Home Developers Limited v. Rajapura Homes Private Limited and Another", "cited_year": "2021", "paragraph": "10.11", "treatment": "relied", "treatment_by": "this_court" }, { "raw_citation": "[(2021) 2 SCC 1]", "case_name": "Vidya Drolia v. Durga Trading Corpn.", "cited_year": "2021", "paragraph": "8.4, 8.7, 9.8, 9.10, 9.12, 10.9, 10.10, 13, 13.1", "treatment": "relied", "treatment_by": "this_court" }, { "raw_citation": "[(2019) 9 SCC 209]", "case_name": "Garware Wall Ropes Ltd. v. Coastal Marine Constructions & Engg.", "cited_year": "2019", "paragraph": "8.4, 10.10", "treatment": "referred", "treatment_by": "this_court" }, { "raw_citation": "[(2018) 6 SCC 534]", "case_name": "Oriental Insurance Co. Ltd. v. Narbheram Power & Steel (P) Ltd.", "cited_year": "2018", "paragraph": "8.4, 10.3", "treatment": "referred", "treatment_by": "this_court" }, { "raw_citation": "(2017) 9 SCC 729", "case_name": "Duro Felguera S.A. v. Gangavaram Port Limited", "cited_year": "2017", "paragraph": "9.8", "treatment": "referred", "treatment_by": "this_court" }, { "raw_citation": "[(2019) 5 SCC 362]", "case_name": "United India Insurance Co. Ltd. v. Antique Art Exports (P) Ltd.", "cited_year": "2019", "paragraph": "9.9", "treatment": "referred", "treatment_by": "this_court" }, { "raw_citation": "[(2019) 8 SCC 714]", "case_name": "Mayavati Trading Private Limited v. Pradyuat Deb Burman", "cited_year": "2019", "paragraph": "9.10", "treatment": "relied", "treatment_by": "this_court" }, { "raw_citation": "(2020) 2 SCC 455", "case_name": "Uttarakhand Purv Sainik Kalyan Nigam Ltd. v. Northern Coal Field Ltd.", "cited_year": "2020", "paragraph": "9.11", "treatment": "referred", "treatment_by": "this_court" }, { "raw_citation": "(2021) 5 SCC 738", "case_name": "BSNL & Anr. v. Nortel Networks India Pvt. Ltd.", "cited_year": "2021", "paragraph": "9.11, 10.12", "treatment": "referred", "treatment_by": "this_court" }, { "raw_citation": "(2021) 5 SCC 671", "case_name": "Pravin Electricals (P) Ltd. v. Galaxy Infra & Engg. (P) Ltd.", "cited_year": "2021", "paragraph": "9.11", "treatment": "referred", "treatment_by": "this_court" }, { "raw_citation": "(2021) 9 SCC 732", "case_name": "Sanjiv Prakash v. Seema Kukreja", "cited_year": "2021", "paragraph": "9.11", "treatment": "referred", "treatment_by": "this_court" }, { "raw_citation": "[(2014) 6 SCC 677]", "case_name": "Swiss Timing Limited v. Commonwealth Games 2010 Organizing Committee", "cited_year": "2014", "paragraph": "9.13", "treatment": "referred", "treatment_by": "this_court" }, { "raw_citation": "(2006) 13 SCC 475", "case_name": "Ambica Construction v. Union of India", "cited_year": "2006", "paragraph": "9.15", "treatment": "referred", "treatment_by": "this_court" }, { "raw_citation": "(2011) 2 SCC 400", "case_name": "R.L. Kalathia & Co. v. State of Gujarat", "cited_year": "2011", "paragraph": "9.15", "treatment": "referred", "treatment_by": "this_court" }, { "raw_citation": "(2009) 2 SCC 337", "case_name": "BSNL v. Motorola India (P) Ltd.", "cited_year": "2009", "paragraph": "9.16", "treatment": "referred", "treatment_by": "this_court" }, { "raw_citation": "(2009) 1 SCC 267", "case_name": "National Insurance Co. Ltd. v. Boghara Polyfab Pvt. Ltd.", "cited_year": "2009", "paragraph": "9.16", "treatment": "referred", "treatment_by": "this_court" }, { "raw_citation": "(2021) 9 SCC 765", "case_name": "Zostel Hospitality (P) Ltd. v. Oravel Stays (P) Ltd.", "cited_year": "2021", "paragraph": "9.16", "treatment": "referred", "treatment_by": "this_court" }, { "raw_citation": "(2000) 8 SCC 151", "case_name": "Datar Switchgears Ltd. v. Tata Finance Ltd.", "cited_year": "2000", "paragraph": "9.18", "treatment": "referred", "treatment_by": "this_court" }, { "raw_citation": "[(2010) 14 SCC 1]", "case_name": "DLF Universal Ltd. & Anr. v. Director, Town and Country Planning Department, Haryana & Ors.", "cited_year": "2010", "paragraph": "10.5", "treatment": "referred", "treatment_by": "this_court" }, { "raw_citation": "[(2013) 5 SCC 470]", "case_name": "Rajasthan State Industrial Development and Investment Corporation & Anr. v. Diamond and Gem Development Corporation Ltd. & Anr.", "cited_year": "2013", "paragraph": "10.6", "treatment": "referred", "treatment_by": "this_court" }, { "raw_citation": "(2020) 3 SCC 222", "case_name": "Mitra Guha Builders (India) Company v. Oil and Natural Gas Corporation Ltd.", "cited_year": "2020", "paragraph": "8.11, 10.7", "treatment": "relied", "treatment_by": "this_court" }, { "raw_citation": "(2014) 9 SCC 246", "case_name": "Harsha Constructions v. Union of India", "cited_year": "2014", "paragraph": "8.11, 10.8", "treatment": "relied", "treatment_by": "this_court" }, { "raw_citation": "(1999) 4 SCC 491", "case_name": "Food Corporation of India v. Sreekanth Transport", "cited_year": "1999", "paragraph": "8.11, 13.3", "treatment": "relied", "treatment_by": "this_court" }, { "raw_citation": "[(2011) 5 SCC 532]", "case_name": "Booz Allen & Hamilton Inc. v. SBI Home Finance Ltd.", "cited_year": "2011", "paragraph": "10.9", "treatment": "referred", "treatment_by": "this_court" }, { "raw_citation": "[ARB.A. (COMM.) 35/2019, decision dated 10.01.2020]", "case_name": "China Petroleum Pipeline Bureau v. Indian Oil Corporation Ltd.", "cited_year": "2020", "paragraph": "8.12", "treatment": "referred", "treatment_by": "this_court" }, { "raw_citation": "[ARB. PET. 276/2016 decided on 09.01.2017 along with order dated 03.07.2017]", "case_name": "Srico Projects Pvt. Ltd. v. Indian Oil Foundation", "cited_year": "2017", "paragraph": "8.12", "treatment": "referred", "treatment_by": "this_court" }, { "raw_citation": "[ARB. PET. 175/2012 decided on 19.05.2015]", "case_name": "Institute of Geoinformatics (P) Ltd. v. Indian Oil Corporation Ltd.", "cited_year": "2015", "paragraph": "8.12", "treatment": "referred", "treatment_by": "this_court" }, { "raw_citation": "[ARB. PET. 334/2014 decided on 12.02.2015]", "case_name": "IOT Infrastructure and Energy Service v. Indian Oil Corporation Ltd.", "cited_year": "2015", "paragraph": "8.12", "treatment": "referred", "treatment_by": "this_court" }, { "raw_citation": "[Arb.Appeal 10/2006 before Gauhati High Court]", "case_name": "Bongaigaon Refinery v. M/s. Buildworth Pvt. Ltd.", "cited_year": "2006", "paragraph": "8.12", "treatment": "referred", "treatment_by": "this_court" } ]

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Arbitration Arbitration Agreements Party Autonomy Restricted Arbitration Clauses Exclusion Clauses Accord and Satisfaction Contract Interpretation Jurisdiction of Arbitral Tribunal Non-Arbitrability

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