26th August, 2025
HARISH TANDON, CJ.
1. An application under Section 11 of the Arbitration and
Conciliation Act, 1996 (in short, „the Act‟) filed by the petitioner is
resisted by the opposite party primarily on the premise that the dispute
raised in the notice invoking arbitration clause contained in the raising
contact dated 18th March, 2010 is beyond the purview of the arbitration
agreement/arbitration clause contained therein.
ARBP No.01 of 2025 Page 1 of 20
2. Undeniably, the opposite party was granted mining lease for an
area covering 262.27 acres of land situated in Tantra (Khata No.35),
Rangua (Khata No.31) and Bandhal (Khata Nos.30 and 39) under Bonai
Sub-Division of Sundargarh district in the State of Odisha on the basis
of a mining lease deed dated 25th January, 2002. Previous to entering
into the said raising contract dated 18th March, 2010, a similar contract
was entered into between the opposite party and one M/s. Gayatri
Mining Pvt. Limited on 14th August, 2009 but that could not materialize
and subsequently, the opposite party cancelled the said previous
contract and approached the petitioner to operate and run the said mine
on the terms and conditions embodied in the raising contract dated 18 th
March, 2010. Indubitably, the said raising contract dated 18th March,
2010 contains an arbitration agreement/clause in the event any disputes
arise between the parties thereto in relation to or touching upon any of
the terms and conditions embodied therein. Simultaneously, a tripartite
agreement of the even date was also executed between the parties
hereto and the said M/s. Gayatri Mining Private Limited for discharge
of several statutory dues including the dues of the said M/s. Gayatri
Mining Private Limited to the tune of Rs.14.00 crores. The validity of
the said raising contract dated 18th March, 2010 was agreed till the
ultimate end of the mining lease which includes renewal and/or revival
period or till the complete exhaustion of the detected mineral deposited
in the schedule land, whichever is earlier.