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S.B.P & Co. v. Patel Engineering Ltd. And Another

Supreme Court Of India
Jul 19, 2005
Smart Summary (Beta)

Factual and Procedural Background

The order records that, after hearing counsel for the parties, the Supreme Court perceived a potential need to revisit its earlier Constitution Bench decision in Konkan Rly. Corpn. Ltd. v. Rani Construction (P) Ltd. (2002) 2 SCC 388. Consequently, the present cases are directed to be placed before a larger—seven-Judge—Bench for reconsideration.

Legal Issues Presented

  1. Whether the view expressed by the Constitution Bench in paragraphs 18–21 of Konkan Rly. Corpn. Ltd. v. Rani Construction (P) Ltd. should be reconsidered by a seven-Judge Bench.

Arguments of the Parties

The opinion does not contain a detailed account of the parties' legal arguments.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Konkan Rly. Corpn. Ltd. v. Rani Construction (P) Ltd. (2002) 2 SCC 388 Constitution Bench ruling whose view in paras 18–21 is under potential reconsideration. The Court observed that the present cases may require reconsideration of this decision and therefore directed that the matter be placed before a seven-Judge Bench.

Court's Reasoning and Analysis

The Court, after hearing the parties, reached a preliminary conclusion that certain aspects of the Constitution Bench judgment in Konkan Rly.—specifically paragraphs 18 to 21—may warrant review. No substantive analysis of those paragraphs is provided in the order; instead, the Court exercises its power to refer the matter to a larger Bench for authoritative clarification.

Holding and Implications

ORDER: The cases are to be placed before a seven-Judge Bench for reconsideration of the specified portions of Konkan Rly. Corpn. Ltd. v. Rani Construction (P) Ltd.

Implications: The immediate effect is procedural—escalating the matter to a larger Bench. The ultimate implications for arbitration law (as addressed in the referenced decision) will depend on the outcome of that future hearing; no new legal precedent is set by this referral order itself.

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Order

1. After hearing the learned counsel for the parties, we are of the opinion that the cases may call for reconsideration of the decision of this Court in Konkan Rly. Corpn. Ltd. v. Rani Construction (P) Ltd. (2002) 2 SCC 388 in particular the view taken in paras 18 to 21 thereof, which is by a Constitution Bench.

2. Be placed before a seven-Judge Bench.

Court Masters