Arbitration Cases Weekly Round-Up: 11 To 17 September 2023

Calcutta High Court:Arbitration Act | Tribunal’s Mandate Terminates U/S 29A Unless Extended During Subsistence: Calcutta High Court Case Title: Rohan Builders (India) Pvt Ltd vs Berger Paints India Ltd The Calcutta High Court has recently held that the mandate of an arbitral tribunal is held to be terminated under Section 29A of the Arbitration & Conciliation Act,...

Fees To Arbitrator Has To Be Treated On Parity With The Fees Of The Liquidator And Must Be Given A Preferential Status In Terms Of Priority Of Dues: Madras High Court

The High Court of Madras has held that the fees to arbitrator has to be treated on parity with the fees of the liquidator and must be given a preferential status in terms of priority of dues. The bench of Justice Abdul Quddhose observed that if the arbitrator’s are not paid their dues, the object of arbitration will get defeated as competent arbitrators would hesitate to...

Moratorium Under IBC Does Not Bar Payment Of Fees To Arbitrator Due Prior To Moratorium: Madras High Court

The High Court of Madras has held that the moratorium under Section 14 of the Insolvency and Bankruptcy Code, 2016 does not affect the payment of fees to the arbitrator for the award passed before the moratorium was declared. The bench of Justice Abdul Quddhose has held that mere initiation of insolvency proceedings against an entity should not be a ground to deny the legitimate fees...

Arbitration Clause In Loan Restructuring Agreement, Liability Is Transferred To New Agreements, Binding On Parties: Delhi High Court

The High Court of Delhi has held that when earlier loan agreement liabilities are transferred through an agreement, the subsequent loan agreements' arbitration clauses become binding on the parties. The bench of Justices Manmohan and Mini Pushkarna reiterated that Section 12(5) inserted through the 2015 Amendment to the Act would not apply to an arbitration that had commenced before...

Fees Fixed By The Arbitrator Cant Be Challenged, After Unconditional Acceptance By The Party: Madras High Court

The High Court of Madras has held that once a party has unconditionally accepted the fees fixed by the arbitral tribunal during the arbitral proceeding cannot later challenge the fees of the arbitral tribunal by filing petition under Section 39(2) of the A&C Act. The bench of Justice Abdul Quddhose clarified that as per Section 39(1) of the Act, the arbitral tribunal possesses a...

J&K Arbitration And Conciliation Act | Filing Application U/S 5 Not Bar To Referral For Arbitration U/S 8(1): High Court

The Jammu and Kashmir and Ladakh High Court has clarified that filing of the application under Section 5 of the Jammu and Kashmir Arbitration and Conciliation Act, 1997 cannot be construed as a submission of statement of the substance of the dispute within the meaning of Section 8(1) of the Act to create a legal bar in referring the matter to an arbitratorSection 8(1) of the Act prescribes...

Arbitration Act | Tribunal’s Mandate Terminates U/S 29A Unless Extended During Subsistence: Calcutta High Court

The Calcutta High Court has recently held that the mandate of an arbitral tribunal is held to be terminated under Section 29A of the Arbitration & Conciliation Act, 1996, (“1996 Act”), unless the same is extended during its subsistence, in the absence of which, an arbitrator would become de jure inadmissible.In disposing of three arbitration petitions containing the aforesaid...

If Contract Mandates Arbitration Only When Claims Collectively Are 20% Or Less Of Contract Value, Court Won’t Compel Arbitration If Exceeds : Delhi High Court

The Delhi High Court has held that in cases where the contract stipulates arbitration solely in instances where the cumulative value of claims is below 20% of the contract value, the court would abstain from directing the parties towards arbitration if the claims surpass this specified cumulative value threshold. The bench of Justice Manoj Kumar Ohri held that the Court can conduct...

Third Party Having Interest In The Immovable Property Can Challenge The Award Before The Executing Court If The Award Was Obtained Fraudulently: Sikkim High Court

The High Court of Sikkim has held that a third party/objector can file a petition under O.XXI R.97 R/W Section 47 of CPC before the Executing Court if it can be shown that the arbitral award in respect of the immovable property is a nullity or obtained by fraud. The bench of Justice Meenakshi Madan Rai held that there is no bar under the law for a stranger to the proceedings who has...

Claims Cannot Be Referred To Arbitration When The Requirement To Mandatorily Notify Such Claims Was Not Followed: Delhi High Court

The Delhi High Court has held that claims of a party cannot be referred to arbitration when the requirement to mandatorily notify such claims with the General Manger (GM) was not followed. The bench of Justice Manoj Kumar Ohri held that the Court can conduct a preliminary enquiry to find out if the dispute is arbitrable in terms of the agreement and refuse arbitration when the...

Place Of Arbitration Does Not Become The Seat Of Arbitration When The Exclusive Jurisdiction Is Conferred On Courts Of Another Place: Rajasthan High Court

The Rajasthan High Court has held that the place of arbitration does not become the seat of arbitration when the exclusive jurisdiction is conferred on Courts of another place. The bench of Justice Pushpendra Singh Bhati held that where a place is designated merely as a ‘venue’ and courts of another place have been granted the exclusive jurisdiction, the latter is a clear...

The India International Arbitration Centre (IIAC) Releases Conduct Of Arbitration Regulations, 2023

The India International Arbitration Centre (IIAC) has officially unveiled the India International Arbitration Centre (Conduct of Arbitration) Regulations, 2023 (hereinafter referred to as the "Regulations"), shedding light on the intricate procedures governing arbitral processes. These Regulations, which became effective on September 1, meticulously outline the procedure...