In Brief
MMTC Ltd, a government trading company acting as a consignment agent for Vedanta Ltd's copper rods, was appointed under an agreement dated 14.12.1993. A dispute arose over supplies to Hindustan Transmission Products Ltd for which HTPL and MMTC failed to pay Vedanta. An arbitral tribunal awarded Vedanta Rs 15,73,77,296 plus interest. MMTC contested arbitrability, arguing the HTPL transaction was independent of the consignment agreement. The Supreme Court upheld the award, finding that MMTC benefited from commission, facilitated the transaction, and correspondence showed the agreement governed all supplies. The arbitral view was reasonable and arbitrability was established.
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