Arbitration Act | Admitted Facts Don’t Breach ‘Twin-Benchmark’ Of Fraud Or Corruption: Calcutta High Court Declines Stay Of Award

The Calcutta High Court has recently dismissed a plea filed by petitioners West Bengal Small Industries Development Corporation Limited (“WBSIDC”) for unconditional stay of an arbitral award passed against it in 2019, on the grounds of fraud and corruption, under Section 36(3) of the Arbitration & Conciliation Act, 1996 (“Act”).In holding that the facts of the case, along with...

Arbitration Cases Weekly Round-Up: 24 July To 30 July 2023

Calcutta High Court: Arbitrator Appeared As Counsel For An ‘Affiliate Company’ Of The Claimant, Award Liable To Be Set Aside : Calcutta HC Case Title: Gopaldas Bagri vs C&E Ltd The High Court of Calcutta has held that an arbitration award is liable to be set aside for violation of Sections 12(1), 12(2) and 12(5) of the Arbitration and Conciliation Act, 1996 when...

Arbitrator Appeared As Counsel For An ‘Affiliate Company’ Of The Claimant, Award Liable To Be Set Aside : Calcutta HC

The High Court of Calcutta has held that an arbitration award is liable to be set aside for violation of Sections 12(1), 12(2) and 12(5) of the Arbitration and Conciliation Act, 1996 when the arbitrator appeared in court for an ‘affiliate company’ of the claimant during the pendency of the arbitration without disclosing such an engagement to the respondent. The bench of...

Insufficiently Stamped Agreement Is Only Against Stamp Act, Can’t Be A Ground To Set Aside Award: Delhi High Court

The Delhi High Court has ruled that though in terms of the judgment of the Supreme Court in M/s N.N. Global Mercantile Private Limited vs M/s Indo Unique Flame Ltd. & Ors., 2023 SCC OnLine SC 495, an Agreement containing an arbitration clause which is not properly stamped, cannot be admitted in evidence. However, once the Agreement has been admitted in evidence by the Arbitrator, who...

Arbitrator Can’t Decide Claims On Mathematical Derivations In Absence Of Evidence : Delhi High Court

The High Court of Delhi has held that an arbitrator cannot decide the claims of a party based on mathematical calculation/derivations without any actual evidence supporting such claims by showing the actual amount incurred by the party claiming damages before the tribunal. The bench of Justice Sachin Datta held that an arbitral award when it involves financial claims relying on...

Objections U/S 36 Of The A&C Act Permissible Only On Issues Relating To Patent Or Inherent Lack Of Jurisdiction Of The Tribunal: Jharkhand High Court

The Jharkhand High Court has held that the objections under Section 36 of the A&C Act permissible only on issues relating to patent or inherent lack of jurisdiction of the tribunal. The Bench of Justice Anubha Rawat Choudhary held that challenge to an arbitral award can only be on the grounds enshrined under Section 34 of the Act, nevertheless, it is permissible to raise...

Arbitration: Review Of Section 11 Petition Order Can’t Be Sought On Subsequent Decision Of Supreme Court In N.N. Global: Delhi High Court

The Delhi High Court has ruled that a review of the court’s order allowing the petition under Section 11 of the Arbitration and Conciliation Act, 1996 (A&C Act), cannot be sought on the basis of the subsequent decision of the Supreme Court in N.N. Global Mercantile (P) Ltd. vs Indo Unique Flame Ltd., 2023 SCC OnLine SC 495. The respondent, Zesty Foods, sough a review of the...

Arbitration Cases Weekly Round-Up: 17 July To 23 July 2023

Calcutta High Court: Party’s Right To Choose Arbitrator Cannot Be Revived Once It Is Surrendered To Court U/S 11(6) Arbitration Act: Calcutta High Court Case Title: Srei Equipment Finance Limited vs Seirra Infraventure Private Limited The Calcutta High Court has recently held that when a party forfeits its right to appoint an arbitrator in accordance with Section 11 of...

Non-Consideration Of Clause In Agreement: Can’t Say Opposed To Fundamental Policy Of Indian Law: Delhi High Court

The Delhi High Court has ruled that non-consideration of a clause of the Agreement executed between the parties, cannot be said to be an error made by the arbitral tribunal which is opposed to the fundamental policy of Indian law. The court added that the same also cannot render the arbitral award patently illegal if the view of the Arbitrator is a plausible one. The bench...

Patna High Court Appoints Justice Mridula Mishra As Arbitrator In Educomp Solutions Vs BSEDC Dispute

The Patna High Court has appointed Justice Mridula Mishra, its former judge, as an independent arbitrator to resolve the ongoing dispute between Educomp Solutions Ltd and Bihar State Electronics Development Corporation Limited.. The dispute dates back to an agreement signed in 2010, involving a three-year contract under the Build, Own, Operate and Transfer framework for the ICT School...

Party’s Right To Choose Arbitrator Cannot Be Revived Once It Is Surrendered To Court U/S 11(6) Arbitration Act: Calcutta High Court

The Calcutta High Court has recently held that when a party forfeits its right to appoint an arbitrator in accordance with Section 11 of the Arbitration & Conciliation Act, 1996 (“Arbitration act”), then it cannot subsequently “trace back its steps” to revive such a right, for the substitution of a fresh panel of arbitrators, when the existing arbitrator becomes de jure/de...

A ‘Medium’ Enterprise Can Approach MSEF Council If It Was A ‘Micro Or Small’ Enterprise At The Relevant Time: Delhi High Court

The Delhi High Court has Court held that the relevant date under the MSMED Act is the date of agreement and additionally the date on which the goods and services were supplied, therefore, a ‘medium’ enterprise can maintain a claim before MSEFC if it was a either a micro or a small enterprise at the relevant time. The bench of Justice Prathiba M. Singh held that any...