Arbitration
S.34 Arbitration Act Application Can't Be Rejected By Merely Citing Insufficient Grounds, Court Must Assign Reasons: MP High Court
The Madhya Pradesh High Court recently reprimanded a Commercial court for rejecting a petition filed under section 34 of Arbitration and conciliation Act without assigning proper reasons for such dismissal. The matter was being heard by Justice Sujoy Paul & Justice Prakash Chandra Gupta: "Whether grounds so taken in the application filed under Section 34 do fulfill those...
LoA Not Issued, But Bid Documents Establish Contractual Relationship - Arbitration Clause Can Be Invoked : Orissa High Court
The Orissa High Court has ruled that where a tenderer/bidder is declared as a 'Preferred Bidder', the arbitration clause incorporated in the tender document can be invoked by the bidder, even if no tender is awarded to it and no formal contract is concluded between the parties. The Court held that the arbitration clause contained in the tender document, which provided for referring...
Reliance On Evidence Filed After Conclusion Of Hearing; Award Is Patently Illegal: Bombay High Court
The Bombay High Court has ruled that where the only documentary material relied upon by the claimant in the arbitral proceedings, is introduced on record surreptitiously and after the conclusion of hearing, the arbitral award is vitiated on account of patent illegality. The Single Bench of Justice Rohit B. Deo held that the power of the court under Section 34 (4) of the Arbitration...
Court Cannot Modify Arbitral Award By Awarding Interest Under Section 34 Of A&C Act: Delhi High Court
The Delhi High Court has ruled that though the claimant is entitled to pre-arbitration interest on the amount of counter-guarantee released in its favour, the Court, in view of the limited scope of judicial review under Section 34 of the Arbitration and Conciliation Act, 1996 (A&C Act), cannot award interest to the claimant since it would amount to modification of the...
Reference Made Under MSMED Act; District Court Has Power To Extend Mandate Or Substitute Arbitrator Under Section 29A Of A&C Act: Bombay High Court
The Bombay High Court has ruled that the provisions of Section 29A of the Arbitration & Conciliation Act, 1996 (A&C Act), which enables the Court to extend the mandate of the Arbitrator or substitute the Arbitrator, would be applicable to the reference made under the Micro, Small and Medium Enterprises Development Act, 2006 (MSMED Act). The Single Bench of Justice Anuja...
Non-Delivery Of Signed Copy Cannot Save Limitation; Chhattisgarh High Court Affirms Section 34 Dismissal
The Chhattisgarh High Court has ruled that though the delivery of signed copy of the arbitral award to each of the parties to the arbitral proceedings is sine qua non, however, if the award debtor had already become aware of the award, enabling him to file an application to set aside the award, mere non-delivery of the signed copy cannot be said to cause any prejudice to him. The...
Arbitration Cases Weekly Round-Up: 18 September To 24 September, 2022
Bombay High Court: Mere Reference To Proposal Containing An Arbitration Clause, Unilaterally Signed By One Party, Would Not Amount To An Arbitration Agreement: Bombay High Court Case Title: M/s. TCI Infrastructure Limited & Anr. versus M/s. Kirby Building Systems (Uttaranchal) Private Limited & Anr. The Bombay High Court has ruled that in an agreement executed by both...
Mere Reference To Proposal Containing An Arbitration Clause, Unilaterally Signed By One Party, Would Not Amount To An Arbitration Agreement: Bombay High Court
The Bombay High Court has ruled that in an agreement executed by both the parties which contains independent terms and conditions, a mere reference to a proposal containing an arbitration clause which was unilaterally signed by one party, would not amount to an arbitration agreement coming into existence between the parties. The Single Bench of Justice Manish Pitale held that for...
Challenge Against Appointment Of Arbitrator Can Be Entertained Only After Passing Of The Award: Rajasthan High Court Reiterates
The Rajasthan High Court has reiterated that any challenge against an arbitrator on the grounds contained in the Fifth Schedule of the Arbitration and Conciliation Act, 1996 (A&C Act), which give rise to justifiable doubts regarding his independence or impartiality, can be gone into by the Court only after the Arbitral Tribunal has given an award. The Single Bench of Justice...
Writ Not Maintainable Against Admission Of Petition Under Section 34 Of A&C Act Without Pre-Deposit : Orissa High Court
The Orissa High Court has ruled that the Court cannot entertain a writ petition against an order passed by the lower court admitting the application under Section 34 of the Arbitration and Conciliation Act, 1996 (A&C Act) to set aside the arbitral award, despite the fact that the award debtor had failed to deposit 75% of the awarded amount, as mandated by Section 19 of the...
Demystifying The Effect Of Insolvency Proceedings In India On Arbitrations
Globalization has been accompanied by cross-border commercial disputes and arbitration has become the default setting for adjudication both nationally and globally.[1] This swing towards arbitration has prompted India to re-equip laws according to international standards. Concurrently, the government has introduced the Insolvency and Bankruptcy Code in 2016 ["IBC"] that has transformed the Indian Economy from a debtors' paradise into an economy of fairness and equity between creditors and...
Arbitration Cases Weekly Round-Up: 11 September To 17 September 2022
Supreme Court: Disputes Related To Tax Concessions Are Not Arbitrable: Supreme Court Case Title: M/s Shree Enterprise Coal Sales Pvt Ltd. versus Union Of India The Supreme Court has held that disputes related to tax concessions are not arbitrable. The division bench of Justice Dhananjaya Y Chandrachud and Justice Hima Kohli has observed that the High Court was in error in...