Section 8 Of A&C Act Can't Be Invoked Based On A Non-Binding Arbitration Agreement: Karnataka High Court

The Karnataka High Court has ruled that since the agreement between the parties provided for a 'non-binding' arbitration, there was absolutely no intention of the parties to enter into an arbitration agreement and that the said agreement could not be termed as an arbitration agreement. The Single Bench of Justice Sachin Shankar Magadum held that since under the relevant clause in...

Invocation Of Arbitration Has To Be In Clear Terms; Merely Stating Claims Would Not Suffice: Bombay High Court

The Bombay High Court has ruled that invocation of arbitration has to be in clear terms, as specified in Section 21 of the Arbitration and Conciliation Act, 1996 (A&C Act), and that a mere reference to the claims and disputes sought to be raised by a party, and the existence of an arbitration clause, would not itself mean that arbitration has been invoked by such a party. The...

If The Issue Of Limitation Calls For An Enquiry, The Court Should Yield To The Authority Of The Arbitral Tribunal: Meghalaya High Court

The Meghalaya High Court has ruled that in a case where the issue of whether the claim raised by a party is barred by limitation or not calls for an inquiry, the Chief Justice or his designate should allow the objection to be decided by the arbitral tribunal in accordance with law. The Single Bench of Chief Justice Sanjib Banerjee held that though in an open and shut case where it...

Objection Regarding 'Excepted Matter' Would Be An After-Thought If It Was Not Raised Before The Arbitrator: Delhi High Court

The High Court of Delhi has held that the objection regarding the excepted matter would be an after-thought if the same was not raised before the arbitral tribunal. The Division Bench of Justice Mukta Gupta and Justice Neena Bansal Krishna relied on the judgment of the Supreme Court in J.G. Engineers v. UOI (2011) 5 SCC 758 to hold that only the question of determination of...

Petition Under Section 11 Of The A&C Act Would Be Non-Maintainable After Filing Of An Application Under Section 13 Of The Act: Himachal Pradesh High Court

The Himachal Pradesh High Court has held that a party cannot file a petition under Section 11 of the A&C Act after it has already submitted to the jurisdiction of the arbitrator by way of filing a petition under Section 11 of the A&C Act. The Single Bench of Justice Sandeep Sharma held once the petitioner has failed to respond/object to the arbitration notice wherein the name...

Stamp Duty On Arbitral Award To Be Paid As Per The Rate Applicable When The Award Was Signed : Karnataka High Court

The Karnataka High Court has ruled that the date for the purpose of quantifying the stamp duty payable on an arbitral award under the Karnataka Stamp Act, 1957 is the date on which the award was signed. The Single Bench of Justice S. Vishwajith Shetty held that since the amendment to Article 11(b) of the Schedule to the Karnataka Stamp Act was already in force on the date of passing...

Challenge Without Impugned Award, Vakalatnama, And The Attested Statement Of Truth, Non-Est In Law: Delhi High Court

The High Court of Delhi has held that an challenge petition filed without impugned award, vakalatnama, and verification is non-est in law. The Single Bench of Justice Vibhu Bakhru was dealing with a case where the petitioner had initially filed a challenge petition under Section 34 of the A&C Act without the impugned award, vakalatnama, and the statement of...

Place Designated As The "Venue" Of Arbitration In Its Entirety, Is The "Seat" Of Arbitration: Bombay High Court

The Bombay High Court has reiterated that whenever a place is designated as the "venue" of the arbitration proceedings in its entirety in an Arbitration Clause, the said place would necessarily be the "seat" of the arbitral proceedings. The Single Bench of Justice G.S. Kulkarni held that such part of the Arbitration Agreement wherein the parties had agreed upon the venue...

Court Exercising Powers Under Section 9 Of The A&C Act Cannot Add Conditions To An Unconditional Bank Guarantee: Meghalaya High Court

The Meghalaya High Court has held that a court exercising powers under Section 9 of the A&C Act cannot add conditions to an unconditional bank guarantee. The Division Bench of Chief Justice Sanjib Banerjee and Justice W.Diengdoh held that mere plea of fraud would not be a ground for the court to stay invocation of an unconditional bank guarantee unless a strong prima facie...

When Termination Of Arbitral Proceedings For Non-Appearance Of Parties, Remain Unchallenged, Application Filed Again For Appointment Of Arbitrator Not Maintainable: Rajasthan High Court

The Rajasthan High Court has held that a second arbitration application would be non-maintainable when the order of the arbitrator terminating arbitral proceedings under Section 32(2)(c) was not challenged under Section 14(2) of the A&C Act. The Single Bench of Justice Pankaj Bhandari held that the legal maxim 'Vigilantibus Non-Dormientibus Jura Subveniunt' which means that...

Arbitration Cases Weekly Round-Up: 26 June To 2 July, 2022

Bombay High Court: Undisputed Claims Can't Be Set-Off Against Unliquidated Damages That Are Not Ascertained: Bombay High Court Case Title : Ocean Sparkle Limited. V Oil and Natural Gas Corporation Ltd. and Anr. The Bombay High Court recently has observed that set-off of unliquidated damages that are not ascertained or admitted against an undisputed claim is not tenable. The...

Section 5 Of The Limitation Act Applies To Arbitration Reference Under National Highways Act, 1956: High Court of Madhya Pradesh

The High Court of Madhya Pradesh has held that Section 5 of the Limitation Act would be applicable to reference to arbitration under the National Highways Act, 1956. The Division Bench of Chief Justice Ravi Malimath and Justice Purushiandra Kumar Kaurav reiterated that since no limitation is provided under Section 3G(5) of the National Highways Act, the provisions of Article 137 of...