Mere Negotiations Do Not Delay Cause Of Action For Purpose Of Limitation, Telangana High Court Dismisses Application For Appointment Of Arbitrator

The Telangana High Court single bench comprising Justice CV Bhaskar Reddy held that the mere exchange of communications or settlement discussions between the parties does not extend the period of limitation for issuing a notice of arbitration. The bench held that mere negotiations do not delay the cause of action for the purpose of limitation. Brief Facts: Athelli...

Fraud Being Non-Arbitrable Due To Complexity Is Archaic Position, Contemporary Arbitration Practice Has Evolved: Bombay High Court

The Bombay High Court single bench comprising Justice Bharati Dangre held that due to an evolution in contemporary arbitration where there was a belief that fraud disputes were unsuitable for arbitration, today, arbitral tribunals routinely navigate through extensive material in various dispute types. Thus, it held that the previous notion of fraud being non-arbitrable due to complexity...

Arbitration And Conciliation Act Does Not Overlap West Bengal Public Land Act: Calcutta High Court

The Calcutta High Court single bench of Justice Moushumi Bhattacharya held that there exists no conflict between the Arbitration and Conciliation Act, 1996, and the provisions of The West Bengal Public Land (Eviction of Unauthorised Occupants) Act, 1962. It held that both statutes operate within distinct domains and do not overlap in their scope or application. Brief...

Arbitration Weekly Round Up: 3nd February to 11th February 2024

Delhi High Court Delhi High Court Dismisses Writ Petition, Permits Petitioner To Avail Remedy Under S. 37 Of Arbitration Act Case Title: Shri Balaji Enterprises & Ors vs Reserve Bank Of India & Anr. Citation: 2024 LiveLaw (Del) 134 The Delhi High Court bench comprising Justice Subramonium Prasad held that the aggrieved party should avail the alternate remedy available...

Disputes Prior To Registration Under MSME Act Can't Be Referred To MSME Arbitration: Delhi High Court Reiterates

The Delhi High Court bench comprising Justice Subramonium Prasad held that an entity registered under Micro, Small and Medium Enterprises Development Act, 2006 after the commencement of the contract cannot be referred to arbitration by MSME Council under Section 17 and 18 of the Act for the claims arisen before its registration. The bench noted that this objection should be raised before...

Party Failing To File Written Submission Within Time Frame, Forfeits Right To File Sec. 8 Petition Under A&C Act: Delhi High Court

The Delhi High Court bench comprising Justice Vibhu Bakhru and Justice Tara Vitasta Ganju held that a party forfeits its right to file an application under Section 8 of the Arbitration and Conciliation Act, 1996 once it has filed the written statement in a civil suit. Brief Facts: Surender Singh Sethi (“Respondent”) initiated a civil suit against Ranjana Bhasin (“Appellant”)...

Splitting Of An Arbitral Award For Publication Is Unnatural And Unsupported By Law, Calcutta High Court Allows Extension Of Arbitrator's Mandate

The Calcutta High Court bench comprising Justice Moushumi Bhattacharya held that neither the Arbitration and Conciliation Act, 1996 nor the Insolvency and Bankruptcy Code, 2016 allows a party's request to halt the publication of an arbitral award to the extent of its reliance on another party's counter-clam. The bench noted that the notion of splitting an arbitral award for this purpose...

Extension of Arbitrator's Mandate Lies Exclusively With Court Which Appointed Arbitrator: Bombay High Court

The Bombay High Court bench comprising Justice Bharati Dangre held that the power to extend the mandate of an arbitral tribunal or arbitrator under Section 29-A of the Arbitration and Conciliation Act, 1996 lies exclusively with the court that appointed the arbitrator(s). The bench held that the term 'Court' in Section 29A must be interpreted in a manner consistent with the Court's power...

Delhi High Court Modifies Interim Relief Of Stay Of Award, Allows Air India To Pay 50% Amount In Form Of Bank Guarantee

The Delhi High Court bench comprising Acting Chief Justice Manmohan and Justice Tushar Rao Gedela modified its earlier order which restrained the execution of an arbitral award involving Air India as a party. Air India claimed that instead of granting an unconditional stay as requested, the High Court initially restrained the execution of the award by employing a contingency on Air India...

Arbitrators Can't Unilaterally Modify Fee, Needs Parties' Consent: Bombay High Court

The Bombay High Court bench comprising Justice Manish Pitale held that any amendments, revisions, or modifications in fees of an arbitrator must only occur with the consent of the parties, as outlined in the tripartite agreement and per Schedule IV of the Arbitration and Conciliation Act, 1996. The High Court also held that the arbitrator is not bound by the strict rules of the CPC and...

Limitation Period U/s 34(3) Absolute; Condonation Of Delay Impermissible Unless Party Shows Diligence And Bona Fide Reasons: Delhi High Court

The Delhi High Court bench comprising Justice Pratibha M Singh held that the time limit for limitation under Section 34(3) of the Arbitration and Conciliation Act, 1996 is absolute in nature and it is impermissible to condone the delay in challenging an arbitral award under Section 34 unless the party demonstrates diligence and bona fide reasons beyond its control for the...

Separate Arbitration Agreement Necessary Between Parties For Reference To Arbitration U/s 18(3) Of MSMED Act by Council: Bombay High Court

The Bombay High Court bench comprising Justice Neela Gokhle held that the parties should have a separate arbitration agreement between them for reference to arbitration under Micro, Small & Medium Enterprises Development Act, 2006 by Micro & Small Enterprises, Facilitation Council. The bench rejected the argument that Section 18(3) of the MSMED Act 2006 provides for a...