2011 JTR(SC) 1146
2012 109 AIC 127 ; 2011 Supp AIR(SC) 1 ; 2012 AIR(SCW) 684 ; 2012 90 AllLR 507 ; 2013 1 RCR(Civ) 219 ; 2011 13 Scale 526 ; 2011 9 SCC 735 ; 2012 1 SLT 37 ; 2011 8 Supreme 484
2011 (8) Supreme 484
SUPREME COURT OF INDIA
Altamas Kabir and Cyriac Joseph, JJ.
Yograj Infrastructure Ltd. — Appellant
versus
Ssangyong Engineering & Construction Co. Ltd. — Respondent
Interlocutory Application No.3 of 2011
in
Civil Appeal No.7562 of 2011
Decided on : 15-12-2011
Act Referred :SUPREME COURT RULES : O.13 R.3, R.32
(A) The Supreme Court Rules, Order XIII Rule 3, and Rule 32 of the SIAC Rules, along with the International Arbitration Act (Cap. 143A, 2002 Ed) of Singapore, are directly referred to in this case concerning the clarification of curial law and procedural corrections in an arbitral matter seated in Singapore. The application for clarification under Order XIII Rule 3 of the Supreme Court Rules seeks to rectify clerical errors regarding the applicable arbitration law and procedural provisions, ensuring that the provisions of the SIAC Rules, particularly Rule 32, and the designated curial law are accurately reflected in the judgment.
(B) Key legal principles include the hierarchical application of curial law where the SIAC Rules govern the procedure, supplemented by the International Arbitration Act where the seat is in Singapore, and the necessity of precise judicial articulation regarding the seat and applicable law in arbitral awards.
Facts of the case:
The case involves an interlocutory application filed by SSANGYONG Engineering & Construction Company Limited seeking clarification and correction of a prior judgment. The issues pertain to misstatements regarding the timing of an application for interim relief, the correct legal provision under which it was filed, the identification of the party that filed the application, and the accurate description of the curial law applicable to the arbitration proceedings.
Findings of Court:
The Court accepted the requested clarifications that the SIAC Rules are the curial law, with Rule 32 specifying that the International Arbitration Act of Singapore applies when the seat is in Singapore. The Court also acknowledged that the prior judgment erroneously described the party filing the application and misstated the relationship between the SIAC Rules and the International Arbitration Act.
Issues:
The issues addressed include whether the description of the application filing party was correct, whether the curial law was accurately stated as the SIAC Rules without proper reference to the applicable statute, and whether the seat of arbitration and its implications for applicable law were correctly articulated.
Ratio Decidendi:
The core reasoning is that where the seat of arbitration is in Singapore, the SIAC Rules govern the procedure, and Rule 32 mandates that the International Arbitration Act of Singapore is the applicable law, necessitating precise judicial language to reflect this hierarchy and avoid ambiguity.
Result:
The Court allowed the application for clarification, corrected the errors in the judgment, and directed that the judgment and order be read with the specified corrections regarding the curial law and factual descriptions.
(A) The Supreme Court Rules, Order XIII Rule 3, and Rule 32 of the SIAC Rules, along with the International Arbitration Act (Cap. 143A, 2002 Ed) of Singapore, are directly referred to in this case concerning the clarification of curial law and procedural corrections in an arbitral matter seated in Singapore. The application for clarification under Order XIII Rule 3 of the Supreme Court Rules seeks to rectify clerical errors regarding the applicable arbitration law and procedural provisions, ensuring that the provisions of the SIAC Rules, particularly Rule 32, and the designated curial law are accurately reflected in the judgment.
(B) Key legal principles include the hierarchical application of curial law where the SIAC Rules govern the procedure, supplemented by the International Arbitration Act where the seat is in Singapore, and the necessity of precise judicial articulation regarding the seat and applicable law in arbitral awards.
Facts of the case:
The case involves an interlocutory application filed by SSANGYONG Engineering & Construction Company Limited seeking clarification and correction of a prior judgment. The issues pertain to misstatements regarding the timing of an application for interim relief, the correct legal provision under which it was filed, the identification of the party that filed the application, and the accurate description of the curial law applicable to the arbitration proceedings.
Findings of Court:
The Court accepted the requested clarifications that the SIAC Rules are the curial law, with Rule 32 specifying that the International Arbitration Act of Singapore applies when the seat is in Singapore. The Court also acknowledged that the prior judgment erroneously described the party filing the application and misstated the relationship between the SIAC Rules and the International Arbitration Act.
Issues:
The issues addressed include whether the description of the application filing party was correct, whether the curial law was accurately stated as the SIAC Rules without proper reference to the applicable statute, and whether the seat of arbitration and its implications for applicable law were correctly articulated.
Ratio Decidendi:
The core reasoning is that where the seat of arbitration is in Singapore, the SIAC Rules govern the procedure, and Rule 32 mandates that the International Arbitration Act of Singapore is the applicable law, necessitating precise judicial language to reflect this hierarchy and avoid ambiguity.
Result:
The Court allowed the application for clarification, corrected the errors in the judgment, and directed that the judgment and order be read with the specified corrections regarding the curial law and factual descriptions.
ORDER
Altamas Kabir, J.
1. Interlocutory Application No.3 of 2011 has been filed by SSANGYONG Engineering & Construction Company Limited in disposed of Civil Appeal No.7562 of 2011, seeking clarification and correction of certain clerical errors in the judgment passed by this Court on 1st September, 2011, under Order XIII Rule 3 of the Supreme Court Rules, 1966.
2. Mr. Dharmendra Rautray, learned Advocate-on-Record, who had earlier appeared for SSANGYONG Engineering & Construction Company Limited, submitted that in paragraph 5 of the aforesaid judgment it had been mentioned that his clients had filed an application before the Sole Arbitrator on 5th June, 2010, for interim relief under Section 17 of the Arbitration and Conciliation Act, 1996. Mr. Rautray pointed out that the said application had been made not under Section 17 of the above Act, but under Rule 24 of the SIAC Rules and the same would be evident from the application made before the sole Arbitrator in SIAC Arbitration No.37 of 2010, by the Respondent, being Annexure-B to the present application.
3. Mr. Rautray then submitted that through inadvertence, in paragraph 35 of the judgment, it has been indicated that there was no ambiguity that the SIAC Rules would be the Curial law of the arbitration proceedings and that the same had been subsequently clarified in paragraph 37, wherein while indicating that the arbitration proceedings would be governed by the SIAC Rules as the Curial law, which included Rule 32, which made it clear that where the seat of arbitration is Singapore, the law of the arbitration under the SIAC Rules would be the International Arbitration Act (Cap. 143A, 2002 Ed, Statutes of the Republic of Singapore). Mr. Rautray submitted that it was a clear case of inadvertence in paragraph 35 that needs to be clarified by indicating that the Curial law is the International Arbitration law of Singapore and not the SIAC rules.
4. It was also pointed out that in paragraph 36 of the judgment in the sentence beginning with the words “In Bhatia International (supra)...”, it had been indicated that while considering the applicability of Part I of the 1996 Act to arbitral proceedings where the seat of arbitration was in India, this Court was of the view that Part I of the Act did not automatically exclude all foreign arbitral proceedings or awards. Mr. Rautray submitted that as would be evident from reading the judgment as a whole, this Court had intended to indicate that where the seat of arbitration was “outside” and not “in” India, the said portion of the sentence should read “where the seat of arbitration was outside India”.
5. It was lastly submitted by Mr. Rautray that in paragraph 4 of the judgment it had been mentioned that an application had been filed by the Appellant under Section 9 of the 1996 Act before the District and Sessions Judge, Narsinghpur, Madhya Pradesh, whereas such an application had been made by the Respondent.
6. Mr. Rautray submitted that the aforesaid clarification and corrections are required to be made in the final judgment.
7. However, on behalf of Yograj Infrastructure Limited it was urged that except for the clarification sought for with regard to the Rules applicable to the arbitral proceedings, the other clarifications could be made.
8. Having regard to the submissions made on behalf of the respective parties, we are inclined to agree with Mr. Rautray that the corrections and clarifications sought for have to be allowed. In particular, the observations made in paragraphs 35 and 37, if read together, indicate that, although, when the seat of arbitration was in Singapore, the SIAC Rules would apply, the same included Rule 32 which provides that it is the International Arbitration Act, 2002, which would be the law of the arbitration. Accordingly, it is clarified that while mention had been made in paragraph 35 that the Curial law of the arbitration would be the SIAC Rules, what has been subsequently indicated in paragraph 37 of the judgment is that International Arbitration Act of Singapore would be the law of the arbitration.
9. The judgment and order dated 1st September, 2011, be read and understood on the basis of the corrections and clarifications hereby made in this order.
10. The interlocutory application filed on behalf of SSANGYONG Engineering & Construction Company Limited, is allowed and disposed of accordingly.
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