SC Discourages post-award enforcement litigation
Judgment dated 3.11.2025 of the Supreme Court of India in Civil Appeal No.13321 of 2025 of MMTC Limited Vs. Anglo American Metallurgical Coal Pvt Ltd.
On 24.9.2012, the respondent Anglo invoked arbitration in the Long Term Agreement dated 7.3.2007 with the appellant MMTC, for damages of the unlifted coal.
By the majority Award dated 12.5.2014, Anglo was awarded US$ 78.720 million with interests and costs. It was confirmed in the Supreme Court.
Anglo filed execution petition for enforcement of the Award. MMTC deposited Rs.1,087/0 on 20.7.2022.
On 2.9.2022 and 23.11.2022, it appears that MMTC Filed complaints alleging fraud and collusion in respect of price fixed for the 5th delivery period.
On 28.11.2022, MMTC filed application for stay of the Award till the CBI investigation.
On 9.1.2023, CBI had registered preliminary inquiry.
On 10.1.2024, MMTC Filed Section 47 CPC objections to the arbitral award, as summarised in paras 7.1 to 7.5 of the judgment.
On 28.10.2024, MMTC filed a civil suit that the Award dated 12.6.2014 is void and unenforceable. It was dismissed on 29.7.2025.
On 11.11.2024, MMTC filed application under Order XXI Rule 29 CPC.
However, both the applications under Section 47 and Order XXI Rule 29 CPC were dismissed vide order dated 9.5.2025.
In the meanwhile, the CBI has registered the FIR on 9.7.2025.
Breach of Fiduciary Duty and Business Judgment Rule.
HELD that the object of Section 47 is to prevent unwarranted litigation and dispose of all objections as expeditiously as possible. This Court has warned that there is a steady rise of proceedings akin to a retrial which causes failure of realization of the fruits of a decree, unless prima facie grounds are made out entertaining objections under section 47 would be an abuse of process.
