In Brief
MMTC Ltd., a government company acting as consignment agent for Vedanta Ltd. (then Sterlite Industries), supplied copper rods to Hindustan Transmission Products Ltd. The buyer failed to pay, and MMTC did not remit the proceeds to Vedanta. Vedanta invoked arbitration. The majority arbitral award and two High Court decisions found MMTC liable for Rs. 15.73 crores plus interest. MMTC challenged arbitrability, arguing the Respondent-HTPL contract was independent. The Supreme Court upheld the award, finding the HTPL supplies fell within the original agency agreement, MMTC actively participated and benefited from the transaction, and contemporaneous correspondence confirmed the dispute's arbitrability. Appeal dismissed.
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