Doctrine Of Severability Applicable To Arbitral Awards, If Good Part Can Survive On Its Own: Allahabad High Court

The Allahabad High Court has held that doctrine of severability can be applied to arbitral awards for separating the good part from the bad, provided they are independent of each other and findings in the award are not substituted by the Court. The bench comprising of Justices Manoj Kumar Gupta and Vikram D. Chauhan held,“We have thus, no hesitation in holding that scheme of the Act does...

Arbitration Cases Weekly Round-Up: 18 To 24 September 2023

Supreme Court: 'Every Arbitrator May Not Be Legally Trained, Some Decisions Are Based On Equity' : Supreme Court Explains Scope Of Judicial Interference In Arbitral Awards Case Title: Batliboi Environmental Engineers Limited vs Hindustan Petroleum Corporation Ltd and Anr. The Supreme Court bench comprising Justice Sanjiv Khanna and Justice M.M. Sundresh, has held that...

Arbitration Award And Stamp Duty Paid On It

Award of an Arbitrator is an instrument chargeable with duty as per section 3 of the Indian Stamp Act, 1899. There is no exemption for any Award. Is any duty payable on an Award dismissing a claim? If any duty is payable on such an Award, what is the rate at which it is payable? If no duty is payable, even when the property involved in the dispute is valued at hundreds of crores of rupees, will it make sense? These questions led to the present study (with particularly reference to the...

Supreme Court Explains Scope Of Judicial Interference In Arbitral Awards

The Supreme Court Bench comprising Justice Sanjiv Khanna and Justice M.M. Sundresh, has held that while setting aside an arbitral award for being violative of Section 28(3) of the Arbitration and Conciliation Act, 1996, it must be considered that the Arbitrator is empowered to interpret the contract terms reasonably. Arbitrator’s interpretation cannot be a ground for setting aside of...

Liquidated Damages Provided In The Agreement Cannot Be Awarded To A Party In Absence Of The Proof Of Actual Loss: Delhi High Court

The High Court of Delhi has held that the sum agreed by the parties as liquidated damages would not dispense with the requirement of proof by the party claiming liquidated damages that it actually suffered a loss. The bench of Justice Manoj Kumar Ohri held that a sum ascertained as liquidated damages in the contract is not in the nature of penalty, but is a pre-estimate of loss...

Whether The Arbitration Agreement Is Vitiated By Fraud Should Be Left To The Wisdom Of The Arbitrator: Delhi High Court Reiterates

The High Court of Delhi has reiterated that a question as to whether the arbitration agreement is vitiated by fraud should be left to the wisdom of the arbitrator who will be free to decide the same on the basis of the evidence and the Court exercising power under Section 11 of the A&C Act should not get into such a finding. The bench of Justice Rekha Palli held that merely because...

Execution Petition For Arbitration Award Would Lie Only Before The Designated Commercial Courts: Andhra Pradesh High Court

The High Court of Andhra Pradesh has held that an execution petition for an arbitration award can only lie before the designated Commercial Courts and no other Court viz., Civil/District Court can entertain such an application. The bench of Justices D.V.S.S. Somayajulu and Duppala Venkata Ramana held that an execution/enforcement petition for an arbitration award of a...

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...