International Arbitration- M/s. Cauvery Coffee Traders, Mangalore v. M/s. Hornor Resources (Intern.) Co. Ltd.

On 13 September, 2011, in the case of M/s. Cauvery Coffee Traders, Mangalore v.  M/s.
Hornor Resources (Intern.) Co. Ltd. [Arbitration Petition Nos. 7 & 8 of 2009], the Court, while
dealing  with  arbitration  applications  under  Section  11(5)  &  (9)  of  the  Arbitration  and
Conciliation Act, 1996 for appointment of Arbitrator in an international arbitration dispute, held
that “a party cannot be permitted to “blow hot and cold”, “fast and loose” or “approbate and
reprobate”.”
The Court held that “where one knowingly accepts the benefits of a contract or conveyance or
an order, he is estopped to deny the validity or binding effect on him of such contract or
conveyance or order. This rule is applied to do equity, however, it must not be applied in a
manner as to violate the principles of right and good conscience.” It was held that in the facts
and circumstances of the case, “as the respondents had resorted to clause 5 of the Purchase
Agreement  regarding  price  adjustment  and  the  offer  so  made  by  the  respondents  was
accepted  by  the  applicants  and  they  agreed  to  receive  a  particular  sum  offered  by  the
respondents as a full and final settlement, the dispute comes to an end. “The applicants cannot
16 COURT NEWS JULY - SEPTEMBER, 2011take a complete somersault and agitate the issue that the offer made by the respondents had
erroneously been accepted.