In Brief
An agent company (Oswal Agro Mills) was appointed to facilitate imports for a principal (Oswal Woollen Mills) under a REP licence scheme for a commission. A material value of Rs. 69.94 crores could not be imported due to the absence of required licences, constituting a breach of contract. The dispute was referred to arbitration. When two arbitrators disagreed, an Umpire was appointed. The appellant sought a de novo (complete fresh) hearing before the Umpire, but this was rejected as being made too late in the proceedings. The Umpire awarded Rs. 64.65 lakhs plus interest to the respondent. The Supreme Court held that while parties have a right to de novo hearings, this right can be waived by conduct, particularly by late applications at the end of proceedings. The Court dismissed the appeal, confirming that arbitrators' decisions on contract interpretation and damages are within their exclusive domain and not subject to court review unless manifestly erroneous.
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