Arbitration
Delhi High Court Delineates Circumstances To Invoke "Group Of Companies" Doctrine
The Delhi High Court has ruled that the plea that signatures to the MoU containing an arbitration clause were obtained by threat and coercion, cannot be considered while considering an application under Section 11 of the Arbitration and Conciliation Act, 1996 (A&C Act) for appointment of the Arbitrator. The Single Bench of Justice Neena Bansal Krishna held that each Company is...
Arbitration Cases Weekly Round-Up: 2 October To 8 October, 2022
Supreme Court: Arbitral Tribunal Must Give Reasons For Fixing Interest Rate; Award Holder Not Entitled To Interest For Delay Caused By It : Supreme Court Case Title: Executive Engineer (R and B) versus Gokul Chandra Kanungo The Supreme Court recently held that a case where the award holder was responsible for delaying the proceedings which led to a huge lapse of time would be a...
Members Of Joint Venture Cannot Invoke Arbitration Clause In Their Individual Capacity: Delhi High Court
The Delhi High Court has ruled that where an agreement is entered into by the parties by forming a consortium / Joint Venture, one of the members of the consortium cannot separately invoke the arbitration agreement in their individual capacity. The Single Bench of Justice Mini Pushkarna reiterated that when there is an agreement with a consortium, it is never the intention of...
Arbitral Award Directing Specific Performance Of Contract, Cannot Be Set Aside On Ground Of Inequitable Nature Of Contract: Madras High Court
The Madras High Court has ruled that an arbitral award directing specific performance of a contract, cannot be set aside on the ground that the nature of agreement between the parties was not capable of specific enforcement. The Court added that the said issue related to the construction of an agreement, which cannot be made a ground for interference of the arbitral award under Section 34...
Arbitral Tribunal Must Give Reasons For Fixing Interest Rate; Award Holder Not Entitled To Interest For Delay Caused By It : Supreme Court
The Supreme Court recently held that a case where the award holder was responsible for delaying the proceedings which led to a huge lapse of time would be a fit case of exercising power under Article 142 to reduce the rate of interest on the sum of award. The Court further held the Arbitration and Conciliation Act casts a duty upon the arbitral tribunal to give reasons as to how it...
Arbitration - Court Can Undertake Preliminary Inquiry Under Section 11 To Ascertain If Dispute Is Arbitrable : Supreme Court
The Supreme Court has held that the High Courts while appointing the arbitrator can launch a preliminary inquiry to decide the issue of 'Excepted Matters' when an objection to that effect is taken by the respondent. The bench of Justices M.R. Shah and Krishna Murari held that if any dispute falls within the 'excepted' category provided in the contract between the parties, then it...
Limitation Period For Invoking Arbitration Cannot Be Extended By Consent: Delhi High Court
The Delhi High Court has ruled that a statement made by the opposite party in the reply to the notice invoking the arbitration clause, giving consent for appointment of an arbitrator, would not extend the limitation period for invoking arbitration, if the claims raised by the claimant are ex-facie time-barred. The Single Bench of Justice Anup Jairam Bhambhani held that...
Review Of Judgment/Order Passed Under Section 11 Of The A&C Act Is Not Permissible: Andhra Pradesh High Court
The Andhra Pradesh High Court has held that review of an order/judgment passed under Section 11 of the A&C Act is not permissible. The Bench of Justice R. Raghunandan Rao held that power of review is the creature of a statute and in absence of any such provision in a statute, an order/judgment cannot be reviewed on its merit unless it is for some procedural irregularity....
Dispute of Unregistered Partnership Firm Can Be Referred To Arbitration, Bar U/S 69 Partnership Act Not Applicable: Calcutta High Court
The Calcutta High Court on Friday, while hearing an application filed under Section 11 of the Arbitration and Conciliation Act, 1996 ('Arbitration Act') for appointment of an arbitrator to resolve the dispute between the parties, held that the bars for instituting a suit or any other proceeding under Section 69 of the Indian Partnership Act, 1932 ('Partnership Act') shall not...
Arbitrator Cannot Delegate The Task Of Quantifying The Amount Of Award To A Chartered Accountant: Calcutta High Court
The Calcutta High Court has held that the arbitrator can indeed take assistance from a third party, including a Chartered Accountant, however, it cannot completely delegate the important function of quantifying the amount of award to any third party. The Bench of Justice Shekhar B. Saraf held that an arbitral award wherein the arbitrator failed to determine the amount of award...
Arbitration Cases Weekly Round-Up: 25 September To 1 October, 2022
Bombay High Court: Reliance On Evidence Filed After Conclusion Of Hearing; Award Is Patently Illegal:Bombay High Court Case Title: Secretary to the Government of India, Ministry of Shipping, Road Transport and Highways & Anr. versus The Additional Commissioner, Nagpur & Ors. The Bombay High Court has ruled that where the only documentary material relied upon by the claimant...
Arbitration Cases Monthly Round-Up: September 2022
Supreme Court: Arbitration Clause Has To Be Given Effect Even If It Does Not Expressly State That Decision Of Arbitrator Is Final & Binding On Parties: Supreme Court Case Title: Babanrao Rajaram Pund versus Samarth Builders & Developers Citation: 2022 LiveLaw (SC) 747 The Supreme Court observed that an arbitration clause has to be given effect even if it does not...