Arbitration Clause Can Be Invoked Against Disputes Under Another Agreement, If Both Agreements Form One Composite Transaction: Karnataka High Court

The Karnataka High Court has ruled that a party can invoke the Arbitration Clause contained in an agreement with respect to the disputes arising with a third party under another agreement, if both the agreements refer to each other and form one composite transaction. The Single Bench of Justice Suraj Govindaraj held that where one of the necessary parties was not issued a legal notice,...

Arbitration Cases Weekly Round-Up: 17 July To 23 July, 2022

Supreme Court: There Cannot Be Two Arbitration Proceedings With Respect To Same Contract/ Transaction: Supreme Court Case Title: M/S Tantia Constructions Limited v. Union Of India Citation: 2022 LiveLaw (SC) 624 Observing that it is of the "firm opinion that there cannot be two arbitration proceedings with respect to the same contract/transaction", the Supreme Court...

There Cannot Be Two Arbitration Proceedings With Respect To Same Contract/Transaction: Supreme Court

Observing that it is of the "firm opinion that there cannot be two arbitration proceedings with respect to the same contract/transaction", the Supreme Court stated that when a dispute has earlier been referred to arbitration and an award was passed on the claims made, then it is "rightful" to refuse to refer to arbitration- in exercise of Section 11(6) of the 1996 Arbitration Act- a...

Constitution Of Arbitral Tribunal Does Not Restrict Application For Interim Relief If "Entertained" By The Court : Karnataka High Court Reiterates The Law

The Karnataka High Court has ruled that the restriction contained under Section 9(3) of the Arbitration and Conciliation Act, 1996 (A&C Act) would not apply once an application under Section 9(1) for interim measures has been "entertained" by the Court before the appointment of the arbitrator.The Single Bench of Justice Sachin Shankar Magadum observed that, as per the law laid down...

The Arbitrator Cannot Award A Lumpsum Amount As Against Specified Claims Without Adjudicating The Claims: Delhi High Court

The High Court of Delhi has held that an award wherein a lumpsum amount is awarded against the specified claims without adjudication of the claims is unsustainable. The Bench of Justice Vibhu Bakhru held that an arbitral tribunal cannot award a lumpsum amount against specified claims of a party merely to meet the ends of justice. The Court also held that an application under...

No Claim Certificate Is Invalid If It Is A Pre-Condition To The Release Of Final Payment: Calcutta High Court

The Calcutta High Court has held that a discharge voucher or No Claim Certificate would be invalid on account of 'Coercion' if it is submitted as a pre-condition to the release of final payment. The Bench of Justice Krishna Rao held that a situation where the employer denies the payment of dues to the contractor unless it submits an undertaking to the employer not to make any...

Similar Matters Pending Before The Facilitation Council Under The MSME Act; Parties Can Be Referred To Arbitration: Jharkhand High Court

The Jharkhand High Court has ruled that merely because one of the parties has approached the Facilitation Council under the Micro, Small and Medium Enterprises Development Act, 2006 (MSME Act) for adjudication of a similar dispute, the application for appointment of arbitrator cannot be held to be not maintainable. The Single Bench of Justice Sujit Narayan Prasad held that in view of...

A Party Can Withdraw Its Consent For Reference To Arbitration Under Section 89 Of The CPC Anytime Before The Court Acts Upon Such Consent: Gujarat High Court

The Gujarat High Court has held that a party can withdraw its consent for reference to arbitration under Section 89 of CPC anytime before the court has acted upon such a reference. The Bench of Justice Umesh A. Trivedi was dealing with a Special Civil Application under Article 227 against an order of the Civil Judge whereby the application jointly given by the parties to the...

Section 11(6A) Arbitration Act Does Not Prevent Courts From Considering Issue Of Arbitrability : Supreme Court

Despite the insertion of Section 11(6A) in the Arbitration and Conciliation Act 1996, the Courts are not denuded of the power to examine the issue of non-arbitrability and jurisdiction at the stage of considering application of appointment of arbitrators under Section 11, held the Supreme Court recently.In this case Indian Oil Corporation Limited v. NCC Limited, the Supreme Court...

An Enabling Clause Does Not Constitute A Binding Arbitration Agreement Between The Parties: Bombay High Court

The Bombay High Court has ruled that once the parties have agreed to use the word 'may', the parties have conferred a discretion to enter into an arbitration agreement in the future; and that such an enabling clause does not constitute any binding arbitration agreement between the parties. The Single Bench of Justice G. S. Kulkarni held that the use of the word "may" does not bring...

Court While Deciding 'Section 11' Application Seeking Appointment Of Arbitrator Can Consider Whether Dispute Falls Within 'Excepted Clause' : Supreme Court

The Supreme Court held that, at the stage of deciding application for appointment of arbitrator, a Court can consider whether the dispute falls within the excepted clause.The court observed that the question of jurisdiction and non-­arbitrability can be considered by a Court at the stage of deciding an application under Section 11 of Arbitration and Conciliation Act if the facts are very...

Non Applicability Of Section 9 Of The A&C Act Can't Be Presumed If Parties Opted For Foreign-Seated Institutional Arbitration: Delhi High Court

The High Court of Delhi has held that merely because the parties have chosen a foreign-seated institutional arbitration under the UNCITRAL Law, they cannot be presumed to have entered into an agreement to exclude the applicability of Section 9 of the A&C Act as provided under the proviso to Section 2(2) of the A&C Act. The Bench of Justice Sanjiv Narula held that the words...