Security Offered By An Award-Debtor For Stay Of Arbitral Award Must Be ‘Clean, Unblemished With Good Exchange Value’: Calcutta High Court

The Calcutta High Court has recently held that the security furnished by an award-debtor for stay of an arbitral award must be “clean, unblemished and with good exchange value.”Sarat Chatterjee & Co. (“applicants”) had argued that that an earlier division-bench judgement of 2015, had already secured 10,000 metric tonnes of Coke equating to more than the total security value of...

Arbitration Monthly Digest: August 2023

Supreme Court: Court Has No Power To Modify Award Under S. 34 Arbitration & Conciliation Act : Supreme Court Case Title: Larsen Air Conditioning and Refrigeration Company vs Union of India The Supreme Court reiterated that a court, under Section 34 of the Arbitration and Conciliation Act, has no power to modify an arbitration award. The limited and extremely...

Arbitration Cases Weekly Round-Up: 28 August to 3 September 2023

Bombay High Court: Court Can Within The Limited Scope Of Judicial Scrutiny Under Section 11 Of The A&C Act, Examine If Claims Are Frivolous Or Meritless: Bombay High Court Case Title: 22Light vs OESPL Pvt Ltd The High Court of Bombay has held that despite the limited scope of judicial scrutiny under Section 11 of the A&C Act, the Court would refuse to appoint the...

Principles Of Natural Justice Not Violated When The Opportunity To Make Oral Submission Is Not Availed: Delhi High Court

The High Court of Delhi has held that the principles of natural justice are not violated when the opportunity to make oral submissions on an issue was granted but not availed by the party. It held that no party has the absolute right to insist on his convenience in every respect. The bench of Justices Suresh Kumar Kait and Neena Bansal Krishna held that an Arbitrator has a right...

Section 21 Notice Is A Mandatory Pre-Requisite For Invoking Jurisdiction Under Section 21 Of The A&C Act: Delhi High Court Reiterates

The Delhi High Court has held that Section 21 notice is a mandatory pre-requisite for invoking jurisdiction of the under Section 21 of the A&C Act, The bench of Justice Jyoti Singh held that a petition under Section 11 of the Act can only be filed when the parties fail to appoint the arbitrator in terms of the procedure agreed upon by the parties and Section 21 is an important...

When There Are Two Interconnected Agreements With Conflicting Arbitration Clauses, The Clause Contained In The Main Agreement Should Be Given Primacy: Delhi High Court

The Delhi High Court has held that when there are two interconnected agreements with conflicting arbitration clauses, the arbitration clause contained in the main/umbrella agreement should be given primacy over the other clause. The bench of Justice Jyoti Singh held that when disputes under two connected agreements had different Arbitration Clauses, the disputes should be resolved...

Section 42 Bars Petitions In Different Courts, Fraud Or Collusion Allegations Can Only Be Examined By The First Court: Delhi HC

The Delhi High Court has decided that if a petition under Section 9 is submitted to any court other than the one where the initial application was made, Section 42 of the A&C Act will prevent it. This section grants exclusive jurisdiction to the first court for arbitration-related cases. First court is basically the court where an arbitration petition is filed at the first instance....

Court Can Within The Limited Scope Of Judicial Scrutiny Under Section 11 Of The A&C Act, Examine If Claims Are Frivolous Or Meritless: Bombay High Court

The High Court of Bombay has held that despite the limited scope of judicial scrutiny under Section 11 of the A&C Act, the Court would refuse to appoint the arbitrator when on a prima facie scrutiny of the material on record, it can come to a conclusion that claims sought to be arbitrated are frivolous and meritless. The bench of Justice Manish Pitale refused to appoint an...

Section 14 Of Limitation Act Applicable To Proceedings U/S 34 Of Arbitration And Conciliation Act: Delhi High Court Reiterates

The Delhi High Court has held that Section 14 of the Limitation Act, which provides for exclusion of time consumed in civil proceedings initiated before a Court not having the jurisdiction, applies to proceedings under Section 34 of the A&C Act. The bench of Justice Jyoti Singh excluded 1239 days spent in prosecuting the petition under Section 34 petition before a Court not having...

Though Not Directly Enforceable, Order Of Emergency Arbitrator In A Foreign-Seated Arbitration A Supplemental Factor To Be Considered U/S 9 Petition: Calcutta HC

The Calcutta High Court has held that an order of the Emergency Arbitrator in a foreign-seated arbitration, while not directly enforceable under the Arbitration and Conciliation Act (A&C Act) due to the absence of a provision akin to Section 17(2) of the Act in Part II, should nonetheless be considered by the Court as a supplemental factor under Section 9 of the Act. The bench...

Court Has Power To Issue Time Bound Directions To Collector Of Stamps To Decide On Unstamped Arbitration Agreements, Purpose Of Section 11(13) Of A&C Act Should Not Be Defeated: Delhi High Court

The Delhi High Court has held the Court exercising power under Section 11 of the A&C Act has the power to issue time bound directions to Collector of Stamps to decide on unstamped arbitration agreements to ensure that the mandate of Section 11(13) of the A&C Act that provides for expeditious disposal of Section 11 petition should not be defeated. The bench of Justice Sachin...

Sending Scanned Copy Of A Signed Arbitral Award Through Email Constitutes A Valid Delivery Under Section 31(5) Of The A&C Act: Delhi High Court

The Delhi High Court has held that an email sent by the arbitral tribunal to the parties wherein the scanned copy of the signed award is attached constitutes a valid delivery of the award under Section 31(5) of the A&C Act. The bench of Justice Mini Pushkarna held that the period of limitation for challenging an arbitral award under Section 34 of the Act would commence on the date...