Glencore International AG v. Shree Ganesh Metals & Anr.

SUBSCRIBE FOR FULL CONTENT


The Tax Publishers 2025 TaxPub(CL) 1505 (SC) IN THE SUPREME COURT OF INDIA SANJAY KUMAR & SATISH CHANDRA SHARMA, JJ. Glencore International AG v. Shree Ganesh Metals & Anr. Civil Appeal No. 11067 of 2025 [@ Special Leave Petition (C) No. 27985 of 2019] 25 August, 2025 JUDGMENT *Sanjay Kumar, J* Leave granted. 2. Is there a binding arbitration agreement between the appellant and respondent No.1? 3. This question was answered in the negative by a learned Judge of the Delhi High Court on 02-11-2017. In appeal, on 14-11-2019, a Division Bench of that Court affirmed that view. Hence, this appeal. 4. Glencore International AG, the appellant, is a Swiss company engaged in the business of mining and commodity trading. Shree Ganesh Metals, respondent No.1, is an Indian proprietorship concern located at Kala Amb, Himachal Pradesh, and is a producer of zinc alloys. Respondent No. 1 had earlier purchased zinc metal from the appellant under contracts dated 20-4-2011, 01-7-2011, 23-11-2011 and 11-1-2012. All the four contracts contained arbitration clauses which stated that any dispute in connection with that contract would be referred to arbitration to be resolved under the Rules of the London Court of International Arbitration and the seat of the arbitration would be London. 5. The parties then proposed to enter into a fifth contract, whereby respondent No.1 was to buy 6,000 metric tons of zinc metal from the appellant from March, 2016 to February, 2017. The terms and modalities of this contract were sought to be worked out between the parties. In that context, the appellant addressed email dated 10-3-2016 to respondent No.1. Therein, it stated that the provisional price would be the London Metal Exchange (LME) average of 10 market days prior. It stipulated that a Standby Letter of Credit was to be opened in form and substance fully acceptable to the appellant for the entire contractual period. It further stipulated that all other terms and conditions, as per the last contract between the parties, would remain intact. Respondent No.1 replied, vide email dated 11-3-2016, wherein it stated as follows: We confirm the same terms as said just one thing that provisional price of both, either LC or Invoice, will be average of last 5 (five) LME days. SUBSCRIBE FOR FULL CONTENT

The Tax Publishers 2025 TaxPub(CL) 1505 (SC)

IN THE SUPREME COURT OF INDIA

SANJAY KUMAR & SATISH CHANDRA SHARMA, JJ.

Glencore International AG v. Shree Ganesh Metals & Anr.

Civil Appeal No. 11067 of 2025 [@ Special Leave Petition (C) No. 27985 of 2019]

25 August, 2025

JUDGMENT

Sanjay Kumar, J

Leave granted.

2. Is there a binding arbitration agreement between the appellant and respondent No.1?

3. This question was answered in the negative by a learned Judge of the Delhi High Court on 02-11-2017. In appeal, on 14-11-2019, a Division Bench of that Court affirmed that view. Hence, this appeal.

4. Glencore International AG, the appellant, is a Swiss company engaged in the business of mining and commodity trading. Shree Ganesh Metals, respondent No.1, is an Indian proprietorship concern located at Kala Amb, Himachal Pradesh, and is a producer of zinc alloys. Respondent No. 1 had earlier purchased zinc metal from the appellant under contracts dated 20-4-2011, 01-7-2011, 23-11-2011 and 11-1-2012. All the four contracts contained arbitration clauses which stated that any dispute in connection with that contract would be referred to arbitration to be resolved under the Rules of the London Court of International Arbitration and the seat of the arbitration would be London.

5. The parties then proposed to enter into a fifth contract, whereby respondent No.1 was to buy 6,000 metric tons of zinc metal from the appellant from March, 2016 to February, 2017. The terms and modalities of this contract were sought to be worked out between the parties. In that context, the appellant addressed email dated 10-3-2016 to respondent No.1. Therein, it stated that the provisional price would be the London Metal Exchange (LME) average of 10 market days prior. It stipulated that a Standby Letter of Credit was to be opened in form and substance fully acceptable to the appellant for the entire contractual period. It further stipulated that all other terms and conditions, as per the last contract between the parties, would remain intact. Respondent No.1 replied, vide email dated 11-3-2016, wherein it stated as follows:

We confirm the same terms as said just one thing that provisional price of both, either LC or Invoice, will be average of last 5 (five) LME days.