Arbitration
Contractor Cannot Deny Payments To ‘Sub-Contractor’ Merely On The Ground That It Has Not Received The Payments From The ‘Employer’: Delhi High Court
The High Court of Delhi has held that a contractor cannot deny payments to the ‘Sub-contractor’ merely on the ground that the contract is on back-to-back basis and it has not received the payments from the main employer. The bench of Justice Manoj Kumar Ohri held that ordinarily in back-to-back contracts, the payments due to a ‘Sub-contractor’ is subject to the payment by...
Delhi High Court Directs Release Of Rs. 16 Crores To Landmark Group As Per 2018 Arbitral Award Against Ansal Group
The Delhi High Court has directed release of over Rs. 16 Crores deposited with the court Registry, in favour of the Landmark Group in the execution petition filed by it seeking enforcement of the arbitral award passed against the Ansal Group. In 2018, an Arbitral Tribunal had awarded a sum of Rs. 46.01 Crores in favour of the Landmark Group against the Ansals in a dispute between the...
Time Limit For Passing Award Under S. 29A Of Arbitration Act A Non-Derogable Provision, S.4 Of The Act Has No Application: Bombay High Court
The Bombay High Court has ruled that even though the parties had participated in the arbitral proceedings continued by the Arbitrator after his mandate had expired, the same cannot amount to a waiver under Section 4 of the Arbitration and Conciliation Act, 1996 (A&C Act). The court remarked that Section 29A of the A&C Act that provides the time limit for passing the award, is...
‘Fraudulent’ Conduct Of Railways Has Shocked Our Conscience: Calcutta HC Unconditionally Stays Arbitral Award, Directs Probe By Union Govt
The Calcutta High Court today unconditionally stayed an award granted in favour of the South Eastern Railways (“SER”) under the Arbitration & Conciliation Act, 1996 (“Arbitration Act”) on grounds of fraud and corruption perpetrated by collusion between the parties in obtaining the impugned award.In expressing his dismay and directing an investigation into the matter by a...
Whether An Agreement Is A Works Contract Or Not To Be Decided By Arbitrator For Applying MSMED Act: Delhi High Court
The Delhi High Court has held that an issue whether an agreement is in the nature of works contract and the consequent issue of applicability of MSMED Act to such contracts is to be decided by the arbitrator. The bench of Chief Justice Satish Chandra and Justice Saurabh Banerjee dismissed an LPA against the orders of a single judge bench holding that the single bench had...
Arbitral Award By MSEF Council Without Conciliation Process Under Section 18(2) Is Liable To Be Set Aside: Orrisa High Court
The High Court of Orrissa has held that the failure of the MSFE Council to refer the parties to ‘Conciliation’ as provided under Section 18(2) of the MSMED Act renders the award passed by it under Section 18(3) susceptible to setting aside under Section 34 of the A&C Act. The bench of Justice S.K. Panigrahi held that in terms of Section 18(2) of the MSMED Act, the MSEF...
Arbitration Cases Weekly Round-Up: 31 July To 06 August 2023
Calcutta High Court: Without Pre-Deposit U/S 19 MSMED Act, Application U/S 34 Arbitration Act Remains 'Stillborn’ For Purpose Of Stay: Calcutta High Court Case Title: The Board of Major Port Authority for the Shyama Prasad Mookerjee Port, Kolkata. vs Marine Craft Engineers Private Limited The Calcutta High Court recently dismissed an application filed by the Board of Major...
Arbitrator Cannot Add The Amount Of Pre-Reference Interest To The Principal Amount While Determining Pendente Lite Interest: Delhi High Court
The Delhi High Court has held that the arbitrator cannot add the amount of pre-reference interest to the principal amount while determining pendente lite interest as the same would amount to levying interest on a compounded basis. It held that the principal amount has to remain static throughout. The bench of Justices Yashwant Varma and Dharmesh Sharma held that Section 31(7)(a) of...
Himachal Pradesh High Court Stays Arbitration Proceedings Commenced Without Fulfilling The Pre-Arbitration Condition Of Negotiation
The Himachal Pradesh High Court has stayed the arbitration proceedings that were unilaterally commenced by a party without complying/fulfilling the pre-condition of negotiation as mandated by the terms of the agreement between the parties. The bench of Justice Tarlok Singh Chauhan observed that when the dispute resolution clause in the agreement mandates the parties to...
Arbitration Cases Monthly Round-Up: July 2023
Supreme Court Can Ineligible Person Appoint Arbitrator? Supreme Court Defers Hearing As Centre Is Considering Reforms To Arbitration & Conciliation Act Case Title: Central Organisation for Railway Electrification vs. M/s ECI SPIC SMO MCML (JV) A Constitution Bench of the Supreme Court on Wednesday decided to defer for two months the hearing of a reference which raises...
Without Pre-Deposit U/S 19 MSMED Act, Application U/S 34 Arbitration Act Remains 'Stillborn’ For Purpose Of Stay: Calcutta High Court
The Calcutta High Court recently dismissed an application filed by the Board of Major Port Authority for the Shyama Prasad Mookerjee Port, Kolkata, for staying the operation of an arbitral award passed by the West Bengal State Micro Small Enterprises Facilitation Council (“MSME Council”).In refuting the petitioners contention that filing an application u/s 34 of the Arbitration...
Arbitration Act| Alleged Liquidity Crunch Of Award Debtor Not Sufficient Cause Under Order XXI Rule 26 CPC To Grant Stay Of Enforcement Of Award: Delhi High Court
The Delhi High Court has ruled that alleged liquidity crunch of the award debtor cannot be a sufficient cause under Order XXI Rule 26(1) of the Code of Civil Procedure, 1908 (CPC) to grant stay of the enforcement proceedings in relation to an arbitral award. The bench of Justice Yogesh Khanna made the observation while hearing a plea seeking modification of the court’s order in...