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2011 Supreme(SC) 1103

REVA ELECTRIC CAR CO. – Appellant
Versus
GREEN MOBIL – Respondent


Judgement Key Points

What is the scope of the court's jurisdiction under Section 11 of the Arbitration and Conciliation Act, 1996, regarding the existence of an arbitration clause? (!) (!) (!) (!) What is the effect of termination of a contract containing an arbitration clause on the survival of the arbitration agreement? (!) (!) (!) (!)

Key Points: - Parties entered into MOU dated 25.09.2007 for marketing cars, with initial term till Dec 2007, extended by petitioner's acts under Clause 2, terminated on 25.09.2009 (!) [1000510900001] (!) (!) - Disputes arose post-termination regarding claims/counter-claims, covered by Clause 11 arbitration clause for disputes at any time relating to the MOU (!) [1000510900004] (!) (!) - Court under Section 11 must decide existence of valid arbitration agreement as jurisdictional fact; here, valid MOU and Clause 11 confirmed (!) (!) (!) (!) - Disputes relate to MOU termination and consequences, to be decided by arbitrator, not court; merits and scope under clause left to tribunal (!) (!) (!) (!) - Arbitration clause independent of other contract terms per Section 16(1)(a); survives even if MOU terminated or void (!) (!) (!) (!) (!) - Respondent's Brussels suit claims pertain to MOU period and termination, acknowledging contractual relationship till 25.09.2009 [1000510900003] (!) (!) (!) - No fresh agreement executed post-MOU; continued performance extended MOU terms (!) [1000510900010] (!) - Court appointed Hon. Mr. Justice R.V. Raveendran (Retd.) as Sole Arbitrator under Section 11(4) & (6) (!) - Relied on precedents: SBP & Co. (2005)8 SCC 618 for Section 11 scope; Bharat Petroleum (2008)1 SCC 503 for extended contracts (!) (!)

What is the scope of the court's jurisdiction under Section 11 of the Arbitration and Conciliation Act, 1996, regarding the existence of an arbitration clause? [p_18][p_19][p_21][p_22]

What is the effect of termination of a contract containing an arbitration clause on the survival of the arbitration agreement? [p_31][p_33][p_64][p_68]


ORDER

Surinder Singh Nijjar, J.-The petitioner has filed the present application under Sections 11(4) and (6) of the Arbitration and Conciliation Act, 1996 read with paragraph 2 of the Appointment of the Arbitrators by the Chief Justice of India Scheme, 1996. It is stated that the parties had entered into a legally valid and enforceable Memorandum of Understanding (`MOU') dated 25th September, 2007, providing, inter alia, for the respective obligation of both the parties in connection with the marketing of the cars of the petitioner. Though the term of the MOU was till December, 2007, it was extended by the acts of the parties in terms of Clause 2 of the MOU.

2. The petitioner makes a reference to various requests made by the respondent for supply of cars in terms of MOU on 22nd April, 2008; 24th August, 2008; and 1st April, 2009. The petitioner further claims that some time in September 2009, disputes arose between the parties. Numerous e-mails were exchanged between the parties, apart from the personal discussions between their representatives, touching and covering the disputes. It is the petitioner's claim that during the term of MOU, merely 15 cars of the petitioner had been s










































































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