In Brief
Ruby Chemicals entered into an Exclusive Distribution Agreement with Charabot Group containing an arbitration clause requiring disputes be settled under ICC Rules. When Ruby filed suit in the High Court, it was referred to arbitration under Section 8 of the Arbitration and Conciliation Act, 1996. Ruby then initiated ICC arbitration in Paris but refused to pay half the arbitration costs, leading the International Court of Arbitration to suspend proceedings in 2010. Ruby later tried to invoke arbitration under the 1996 Act, but Charabot refused, insisting on ICC Rules only. The Supreme Court held that since the ICC proceedings had become abortive and both parties agreed exclusively to ICC Rules, a fresh petition under Section 11(6) could not be entertained. However, as ICC arbitration had failed, the Court permitted Ruby to pursue its original High Court suit.
The lawyer headnote and full judgment text are available to registered users.