Arbitration
Arbitration | Unconditional Stay On Execution Of Award Only In Exceptional Cases: Supreme Court
The Supreme Court recently declined to grant an unconditional stay on the execution of the arbitral award, holding that the requirement to deposit the security amount was justified since the award was not shown to have been induced or tainted by fraud or corruption. Referring to its latest ruling in Lifestyle Equities C.V. and Another v. Amazon Technologies Inc., a bench of Justices...
'Sum' U/S 31(7)(b) A&C Act Excludes Pendente Lite Interest Unless Expressly Included: Delhi High Court In Award Execution Plea Against BSNL
The Delhi High Court held that if pre-award or pendente lite interest is not added to the principal amount in an arbitral award or on appeal, then post-award interest under Section 31(7)(b) cannot be charged on it.Justice Amit Bansal dismissed the decree-holder's contention that the Supreme Court's use of the phrase 'statutory interest' entitled it to post-award interest on both principal...
Indian Courts Have No Jurisdiction To Appoint Arbitrator For Foreign-Seated Arbitration : Supreme Court
The Supreme Court on Friday (November 21) dismissed a plea seeking the appointment of an arbitrator in an international commercial arbitration, holding that once the principal contract is governed by foreign law and provides for a foreign-seated arbitration, Indian courts lose jurisdiction, irrespective of the Indian nationality of any party. “Indian Courts have no jurisdiction to appoint...
Arbitrator Is The Master of Evidence; Court In Appeal Cannot Reassess Facts: Delhi High Court
The Delhi High Court has recently reiterated that an arbitrator is the master of both the quantity and quality of evidence, and therefore the court, while exercising appeal or supervisory jurisdiction, cannot reappreciate factual findings recorded in an arbitral award. The court emphasized that it does not sit as a court of appeal over the findings of the learned Arbitrator and its role...
Dispute Over Property Used Exclusively For Trade Constitutes Commercial Dispute Even If Situated In Residential Area: Delhi High Court
The Delhi High Court held that a dispute arising from a lease agreement under which premises were used actually used for running a retail showroom qualifies as a commercial dispute under section 2(1)(c)(vii) of the Commercial Courts Act, 2015 even if the property is situated in a residential zone under the Municipal Law. A Division Bench of Justice Anil Kshetrapal and Justice...
Order Refusing To Terminate Arbitration Is Not An Interim Award: Bombay High Court Dismisses Challenge U/S 34 A&C Act
The Bombay High Court dismissed a petition under section 34 of the Arbitration and Conciliation Act, 1996 (Arbitration Act) challenging an order passed by the Arbitral Tribunal by which it had refused to terminate the ongoing proceedings holding that the order was merely a prima facie view, interlocutory one and not an arbitral award capable of being challenged. Justice...
Arbitral Tribunal Cannot Rewrite Executed Contract Using Internal Notings: Bombay High Court Sets Aside Award Against Konkan Railway
The Bombay High Court set aside a majority arbitral award that had directed Konkan Railway to bear Royalty Charges for earth used in a Madhya Pradesh project holding that the arbitral tribunal acted in contravention of the contractual terms and committed patent illegality by relying on internal tender committee minutes to infer a different intention of the parties. Justice R.I....
Arbitration | Dispute On Interest Rate Doesn't Fall Under Public Policy Ground To Set Aside Award Ordinarily: Supreme Court
The Supreme Court on Tuesday (November 18) upheld the charging of a 24% interest rate in an arbitral award, stating that an interest rate agreed upon in a commercial loan agreement did not violate the fundamental policy of Indian law. “It is well-settled that fundamental policy of Indian law does not refer to violation of any Statue but fundamental principles on which Indian law is...
Multiple Remand Orders U/S 37 A&C Act “Unworkable” Without Reversing Findings On Merits: Madras High Court
The Madras High Court held that multiple remand orders issued by courts under section 37 of the Arbitration and Conciliation Act, 1996 (Arbitration Act) without disturbing or reversing the findings on merits recorded by earlier Single Judges were incapable of implementation. The court found the situation unprecedented and unusual holding that the statutory scheme of the Civil Procedure...
Tariff During Registration Was To Remain Fixed For 25 Years; CSPDCL Waived Its Rights: Delhi High Court Allows IREDA's Appeal Over GBI Scheme
The Delhi High Court Bench of Chief Justice and Justice Tushar Rao Gedela has observed that under the Generation Based Incentive Scheme (GBI) Scheme, 2010 by Ministry of New and Renewable Energy, the tariff at the time of registration of project would remain constant for a period of 25 years and any upward revision of tariff by State Electricity Regulatory Commissions (“SERC”) from...
Suspension Of Proceedings By Arbitrator For Non-Payment Of Revised Fees Amounts To Effective Withdrawal From Office: Bombay High Court
The Bombay High Court held that an arbitrator who suspended the proceedings indefinitely on the ground of non-payment of revised fees and thereafter failed to conduct hearings must be deemed to have withdrawn from office under section 15 of the Arbitration and Conciliation Act, 1996 (Arbitration Act). The court further held that the arbitrator's mandate had also expired by efflux of...