VidhiSangh

Supreme Court of India · 23/10/2019

PETROLEUM CORPORATION LIMITED versus GO AIRLINES (INDIA) LIMITED

[2019] 13 S.C.R. 1044 · 2019 INSC 1183

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Summary

In arbitration over interest on aviation-fuel payments, Go Airlines counterclaimed for CENVAT invoices or monetary relief. The Court upheld the setting aside of the arbitrator’s threshold rejection of that counterclaim. Its contractual basis, arbitrability and relationship to the reference required enquiry; neither the High Court nor the Supreme Court finally decided entitlement to CENVAT credit.

Issues

  1. Whether the CENVAT-invoice counterclaim could be rejected for want of jurisdiction at the threshold.

Provisions considered

Held

Result

The High Court judgment was affirmed and BPCL’s appeal dismissed without costs. The arbitrator was directed to proceed on the merits in accordance with law, without treating the High Court’s CENVAT-credit observations as a merits determination.

Judgment PDF: Supreme Court of India, [2019] 13 S.C.R. 1044.