Arbitration Agreement Executed By Joint Venture Can’t Be Invoked By Its Constituents: Patna High Court

The Patna High Court has ruled that an arbitration agreement executed by a Joint Venture cannot be invoked by the constituents of the said Joint Venture, since they cannot be considered as a party to the arbitration agreement. While dealing with a petition under Section 11 of the Arbitration and Conciliation Act, 1996 (A&C Act) seeking appointment of arbitrator, the bench of...

Entire 30 Days Extended Period Under Section 34(3) Of The A&C Act Coincided With Court Vacations, Calcutta High Court Invokes Power Under Article 133(1)(A) R/W Article 134A Of The Constitution

The High Court of Calcutta has invoked its powers under Article 133(1)(a) r/w Article 134A of the Constitution to allow the aggrieved party to directly appeal against its judgment to the Supreme Court on the ground that the case involves a substantial question of law of general importance. The bench of Justice Shekhar B. Saraf was dealing with a peculiar situation wherein the...

Arbitration Clause Extinguishes After Dissolution of Partnership; Gujarat High Court Rejects S.11 Petition

The Gujarat High Court has ruled that once the partnership at will is dissolved, the arbitration clause contained in the partnership deed cannot be invoked to refer the dispute between the partners to arbitration. The bench of Justice Biren Vaishnav was dealing with an arbitration clause which provided for reference of the dispute between the partners with regard to the “dealing of...

Arbitration Monthly Round Up- April 2023

Supreme Court: Arbitration Agreement In Unstamped Contract Which Is Exigible To Stamp Duty Not Enforceable: Supreme Court Holds By 3:2 Majority Case Title: M/s. N.N. Global Mercantile Pvt Ltd vs M/s. Indo Unique Flame Ltd & Ors A Constitution Bench of the Supreme Court, on Tuesday, answered the reference, which pertains to the issue - whether the arbitration clause in...

Allegations Of Fraud/Forgery Inter-Se The Parties Do Not Make The Dispute Non-Arbitrable: Calcutta High Court

The Calcutta High Court has held that mere allegations of fraud inter-se the respondents would not make a dispute non-arbitrable. The bench of Justice Shekhar B. Saraf held that merely because the respondents inter-se dispute the validity of the agreement containing arbitration clause and also their signature on it, it does not make the dispute non-arbitrable. It further held that...

Mere Signing Of The Award At A Place Cannot Be The Determinative Factor For Ascertaining The Place Of Arbitration: Bombay High Court

The Bombay High Court has ruled that mere signing of the arbitral award at a place cannot be the determinative factor for ascertaining the place of arbitration. It added that if there is no agreement between the parties regarding the place of arbitration and the arbitrator has not determined the place of arbitration, the overall circumstances of the case would have to be taken...

Arbitration Cases Weekly Round-Up: April 23 To April 29, 2023

Supreme Court: Arbitration Agreement In Unstamped Contract Which Is Exigible To Stamp Duty Not Enforceable: Supreme Court Holds By 3:2 Majority Case Title: M/s. N.N. Global Mercantile Pvt Ltd vs M/s. Indo Unique Flame Ltd & Ors A Constitution Bench of the Supreme Court, on Tuesday, answered the reference, which pertains to the issue - whether the arbitration clause in a...

Order Of Arbitral Tribunal Terminating Proceedings For Non-Payment Of Tribunal Fees Cannot Be Recalled: Telangana High Court

The Telangana High Court held that once the tribunal has passed an order terminating the arbitral proceedings under Section 32(2)(c) r/w Section 38 of the A&C Act for non-payment of tribunal fees, the tribunal cannot recall the order and continue the arbitral proceedings. The bench of Justices P. Naveen Rao and Nagesh Bheempaka held that once the arbitral proceedings are...

Arbitration-Court To Apply Reasonable Third Person Test While Considering Arbitrators’ Requirement For Disclosure, If The Case Doesn’t Fall Under The Lists Under IBA Guidelines: Bombay High Court

The Bombay High Court, while dealing with a petition seeking enforcement of a foreign arbitral award, has observed that the “pro-enforcement bias” in the New York Convention has been specifically adopted in Section 48 of the Arbitration and Conciliation Act, 1996 (A&C Act). The bench of Justice Manish Pitale was considering the guidelines issued by the International...

Agreement Between The Parties “Birth-Giver”; Arbitrator Can’t Grant Pre-Award Interest When Agreement Provided For No Interest: Delhi High Court

The Delhi High Court has reiterated that the agreement between the parties has primacy over the powers of the Arbitral Tribunal to grant pre-award interest under Section 31(7)(a) of the Arbitration and Conciliation Act, 1996 (A&C Act). The bench of Justice Chandra Dhari Singh held that since the Agreement between the parties specifically provided that no interest shall be granted...

Party Is Entitled To Challenge Appointment Of Arbitrator In Violation Of Arbitration Act, At Any Stage: Madras High Court

The Madras High Court has ruled that a party is entitled to challenge the appointment of the Arbitrator at any stage, if there is any violation of the provisions of the Arbitration and Conciliation Act, 1996 (A&C Act). The court remarked that even if the award debtor had participated in the arbitral proceedings or, after having knowledge of the appointment of the sole Arbitrator,...

Delhi High Court Allows Daiichi Sankyo To Withdraw Rs. 20.5 Crores, Imposes A Cost Of 10 Lakh On IHFL For Abuse Of Process Of Court In 4000 Crore Foreign Arbitral Award Case

The Delhi High Court on Monday allowed Daiichi Sankyo to withdraw over Rs. 20.5 crores lying with the Registrar General of the High Court, which was transmitted pursuant to the Supreme Court’s 2022 order in the contempt proceedings initiated against the directors of Indiabulls Housing Finance Limited (IHFL) and Indiabulls Ventures Limited (IVL) for flouting the Supreme Court’s...