VidhiSangh

Supreme Court of India · 09/05/2023

INDIAN OIL CORPORATION LTD. AND ORS versus M/S. SATHYANARAYANA SERVICE STATION & ANR

[2023] 5 S.C.R. 682 · 2023 INSC 507

AI-generated headnote. Verify against the judgment before relying on it. Paragraph numbers refer to the judgment.

Summary

The Court restored an arbitral award rejecting a dealer’s challenge to termination following its own withdrawal notice. Even assuming acceptance was required, the arbitrator plausibly found that IOC had accepted the notice before its attempted withdrawal. The High Court exceeded limited award-review jurisdiction by reassessing the correspondence and ordering dealership restoration with further damages liberty. Both appeals were allowed, with parties bearing their own costs.

Issues

  1. Whether the arbitrator’s finding that the dealer’s notice had been accepted was a permissible view of the correspondence.
  2. Whether a new contractual interpretation could be raised for the first time in the Supreme Court.
  3. Whether the High Court could reassess the merits and grant restoration and damages liberty after setting aside the award.

Provisions considered

Held

Result

Both appeals allowed. High Court judgment set aside and arbitral award restored. Parties to bear their respective costs.

Judgment PDF: Supreme Court of India, [2023] 5 S.C.R. 682.