Headnote
A) Arbitration Law - Validity of Arbitration Agreement - Enforceability of Arbitration Clause - Indian Arbitration Act, 1940, Section 20 - The court held that the arbitration agreement was maintainable despite the buyers' objections regarding the legality of the contract, as the statutory provisions allowed for arbitration to proceed. (Paras 1-2). B) Contract Law - Illegality and Validity - Foreign Exchange Regulation Act, 1947, Sections 5, 21 - The court determined that the contract did not violate the Foreign Exchange Regulation Act, as it included an implied term requiring Reserve Bank permission for enforcement, thus making it enforceable. (Paras 3-4). C) Contract Law - Vagueness and Uncertainty - Indian Contract Act, 1872, Section 29 - The court found that the reference to
Issue of Consideration
Whether the arbitration agreement was valid and enforceable under the Indian Arbitration Act and whether the contract was void due to illegality or vagueness.
Final Decision
Appeal dismissed.
Law Points
- Arbitration
- Contract Validity
- Foreign Exchange Regulation
- Force Majeure
- Statutory Bye-laws
