One of our client XYZ is a big Mining Company in Odisha. They were operating their own Mines through a raising Contractor ABC who promised more production through the use of modern technology. XYZ had the mining lease in their name. The main contract between XYZ and ABC was for ten years and XYZ gave an irrevocable Power of attorney in favor of the raising contractor. But ABC did not increase the production and did not bring any modern technology in the raising of Ore. Before the end of 10 years period was over, the raising contractor ABC requested for one year extension which was also granted due to XYZ considering the matter sympathetically. But to the surprise of XYZ, the raising contractor filed a petition under S.9 of the Arbitration Act seeking for an injunction from evicting from the mines, since there was an Arbitration clause in the contract. The trial Court also granted such an Injunction. XYZ challenged the injunction order of the trial Court in the High Court and the High Court correctly reversed the order of the Trial Court. ABC came to Supreme Court and challenged the order of the High Court. Finally Supreme Court confirmed the order of the High Court on various grounds including “no party can be compelled to extend the contract for any reason and even if there was a wrong termination and if there is a termination clause only the affected party can seek damages and not an injunction”.
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