2017 Airport Metro Arbitral Award: Delhi High Court Issues Directions To Centre, Delhi Govt For Payment Of Unpaid Dues To Reliance Infra By DMRC

The Delhi High Court on Friday directed the Union of India and Delhi government to forthwith attend to Delhi Metro Rail Corporation (DMRC)'s request for extension of sovereign guarantee or subordinate debt to enable it make payment of dues to Reliance Infra-owned Delhi Airport Metro Express Private Limited (DAMEPL) under the 2017 arbitral award.Justice Yashwant Varma said the decision shall...

Arbitral Tribunal’s Order Rejecting Party’s Request To File Counter Claims On Ground Of Delay, Doesn’t Foreclose Its Right To Invoke Arbitration: Delhi High Court

The Delhi High Court has ruled that the Arbitral Tribunal’s order rejecting a party’s request to file counter claims on the ground of delay, does not foreclose its right to invoke arbitration seeking independent reference of its claims. The bench of Justice Prateek Jalan remarked that, when arbitration proceedings are invoked at the instance of one party, it is generally open to...

Participation In A Civil Suit Filed By Partner, Doesn’t Operate As Waiver Of Right To Invoke Arbitration: Delhi High Court

The Delhi High Court has ruled that, merely because the defendant participated in a civil suit filed by the plaintiff, he cannot be said to have waived his right to invoke arbitration with respect to all future litigation between the parties under the Agreement. The bench of Justice Neena Bansal Krishna held that participation of a party in a civil suit instituted by a partner, would...

Calcutta High Court Criticizes The Approach Of Finance And Banking Companies Unilaterally Appointing The Arbitrator; Refuses To Enforce ‘Unilateral Appointment Award’

The High Court of Calcutta has deprecated the practice of banking and financial institutions unilaterally appointing the arbitrator. It refused to enforce an award passed by an arbitrator that was unilaterally appointed by the petitioner. The bench of Justice Shekhar B. Saraf has held that an arbitration award passed by a unilaterally appointed arbitration is non-est and...

Though Borrower Can File Civil Suit Despite The Remedy Of Counter Claim In DRT, In Light Of Section 8 Of The A&C Act, Bombay High Court Refers The Parties To Arbitration

The Bombay High Court has reiterated that the Recovery of Debts and Bankruptcy Act, 1993 (RDB Act) bars the jurisdiction of the Civil Court only in respect of the applications filed by banks/ financial institutions for recovery of debt, however, it does not bar the jurisdiction of the Civil Court to try a suit filed by the borrower. The bench of Justice Bharati Dangre remarked...

Arbitrator Can Declare Terms Of Contract Null, Even If No Declaration Is Sought By The Party In Its Pleadings: Delhi High Court

The Delhi High Court, while dealing with a petition filed under Section 34 of the Arbitration and Conciliation Act, 1996 (A&C Act), has rejected the contentions raised by the petitioner that the Award of the Majority Tribunal declaring the Clause providing for compound interest as null, was perverse since there were no pleadings made by the opposite party in its Statement of...

An Arbitration Award In Violation Of The Provisions Of The Indian Contracts Act Is Patently Illegal: Delhi High Court

The High Court of Delhi has held that an arbitration award that is passed in violation of the provisions of the Indian Contracts Act, 1872 would be liable to be set aside as suffering from patent illegality. The bench of Neena Bansal Krishna partially set aside an arbitration award that was passed in contravention of Sections 59-61 of the Indian Contracts Act, 1872. The Court...

Arbitrator’s Direction For Disclosure Of Not Relevant Information Is An Order Under S. 19 And Not 17 Of Arbitration Act: Bombay High Court

The Bombay High Court has ruled that no appeal is maintainable under Section 37 of the Arbitration and Conciliation Act, 1996 (A&C Act) against the order of the Arbitral Tribunal directing the party to disclose the contents of sealed envelope submitted by it at the time of tendering of evidence, since the same did not relate to the subject matter of arbitration nor was it a...

A ‘No-Claim Declaration’ Given By Party Would Not Extinguish Its Remedy To Invoke Arbitration: Delhi High Court

The Delhi High Court has ruled that while dealing with a petition filed under Section 11 of the Arbitration and Conciliation Act, 1996 (A&C Act), if the arbitration clause between the parties in the Special Conditions of Contract (SCC), which does not contain the mandate of a pre-arbitral procedure, is claimed to be overridden by another arbitration clause existing in the...

Arbitration Cases Weekly Round-Up: March 5 To March 11, 2023

Bombay High Court: Arbitration Clause Can Be Invoked By Assignee Of Rights Under Contract: Bombay High Court Case Title: M/s. Siemens Factoring Pvt Ltd vs. Future Enterprises Pvt Ltd The Bombay High Court has ruled that an arbitration agreement is assignable, just as any other contract, and where the obligations and rights under an Agreement, containing an arbitration clause,...

Once Decision Is Made In A S. 34 Application, Court Has No Power To Remit Matter To Arbitrator: Telangana High Court

The Telangana High Court has ruled that once a decision is made in an application filed under Section 34 of the Arbitration and Conciliation Act, 1996 (A&C Act), the Court has no power to remit the matter back to the Arbitrator under Section 34(4). The bench of Justices P. Naveen Rao and J. Sreenivas Rao observed that since the Arbitrator had failed to frame an issue on...

Issue Whether The Dispute Pertains To The Agreement Containing Arbitration Clause Or Not, To Be Decided By Arbitrator: Delhi High Court

The Delhi High Court has ruled that the issue whether the disputes between the parties have arisen under the Memorandum of Understanding (MoU) containing an arbitration clause, or the subsequent work orders issued to the party, which are devoid of any arbitration clause, or whether they are related to both, can be looked into by the Arbitrator who can rule on his own jurisdiction in terms...