In Brief
MMTC Ltd., acting as a consignment agent for Vedanta Ltd., supplied copper rods to Hindustan Transmission Products Ltd. (HTPL) but failed to recover and remit payment. When payment was not made, Vedanta invoked arbitration. The arbitral tribunal awarded Rs. 15.74 crore in Vedanta's favour. MMTC challenged the award, arguing a separate agreement between Vedanta and HTPL fell outside the original consignment agreement. The Supreme Court upheld the award, holding that the dispute fell within the arbitration clause, as the consignment agreement did not distinguish between customer types and MMTC benefited from and actively participated in the HTPL transaction. The appeal was dismissed.
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