Key Principles from the Judgment

Legislative Intent of Arbitration and Conciliation Act, 1996: The Act aims to minimize supervisory role of courts in arbitral processes by facilitating quick nomination or appointment of arbitrators, leaving contentious issues for resolution before the arbitral tribunal itself. [1000079570013]

Scope of Court/ICA Intervention under Sections 11 and 16: Neither the arbitral institution (ICA) nor courts should adjudicate disputes regarding existence, validity, enforceability of arbitration agreement, or propriety of tribunal constitution at the appointment stage. Such issues must be raised and decided by the arbitral tribunal under Section 16 after reference. [1000079570012][1000079570013][p_14? Wait, no p_14, but from context [1000079570013]]

Parties' Arbitration Agreement: The contracts contained a standard clause referring all disputes to arbitration under ICA Rules, with FCI's Senior Regional Manager/Zonal Manager to nominate arbitrator from ICA panel. ICA could not insist on fresh written consent from both parties (FCI and Millers) to proceed. (!) (!) (!) [1000079570002][1000079570003][1000079570004]

ICA's Refusal to Proceed: ICA wrongly refused to nominate arbitrator or process claims until parties provided fresh written agreement confirming arbitration under ICA Rules, despite proceedings commencing upon FCI's request. [1000079570001][1000079570004][1000079570005]

High Court's Error: High Court erroneously adjudicated merits, holding petitions non-maintainable, arbitration clause inconsistent with ICA Rule 22(a), and no jurisdiction for ICA appointment without parties' consent. Such role is impermissible. [1000079570006][1000079570012]

Maintainability of SLPs: SLPs against High Court's order were maintainable due to its detailed findings pre-empting arbitrator appointment, creating peculiar circumstances warranting Supreme Court intervention under Article 136. [1000079570010]

Construction of Arbitration Clauses: Clauses must be interpreted with a common-sense approach to uphold parties' intent for arbitration under specified institution and rules, avoiding narrow or pedantic readings that frustrate the process. [1000079570013][1000079570007]

Directions Issued by Supreme Court: ICA directed to nominate arbitrator(s) within 60 days as requested by FCI, place matters before them; parties free to raise all objections (including under Section 16) and seek adjudication on merits before the tribunal. [1000079570014]

No Controversy on Agreement's Existence: Undisputed that parties agreed to resolve disputes via ICA arbitration per its rules; any alleged infirmities deferred to tribunal. [1000079570013]

Procedural Aspects under ICA Rules: Rules 16, 21, 22 do not empower ICA Registrar to demand fresh agreements; FCI's requests complied with rules, no need for Millers' direct consent at nomination stage. [1000079570005][1000079570007]