Court Is Not Appropriate Forum To Seek Interim Relief During Arbitration Proceedings: Calcutta High Court

The Calcutta High Court bench of Justice Shampa Sarkar has held that the appropriate forum for seeking interim relief after the constitution of the Arbitral Tribunal is the Tribunal itself under Section 17 of the Arbitration Act. Recourse to the court under Section 9 is permitted during the arbitration proceedings only if the remedy under Section 17 is found to be...

Interim Measures U/S 9 Of Arbitration Can't Be Sought By MSME During Conciliation Proceedings: Calcutta High Court

The Calcutta High Court bench of Justice Shampa Sarkar has held that interim measures under Section 9 of the Arbitration Act can be sought by the MSME only after mandatory conciliation before the MSME Council fails and the dispute proceeds to arbitration—either conducted by the Council or referred to an arbitral institution. Only then do the provisions of the Arbitration...

[Arbitration] S.10 Of General Clauses Act Applies Only If S.34 Application Was Filed Within Time, Court Was Closed On Last Day Of Limitation: Delhi HC

The Delhi High Court bench of Justices Hari Shankar and Ajay Digpaul has held that the benefit of Section 10 of the General Clauses Act is available only when the petition is filed within the normal limitation period that is 90 days as prescribed under section 34(3) of the Arbitration Act and the court was closed on the last day of that period. It does not apply when the court was closed...

[Arbitration Act] Opposite Party's Failure To Reply To S.21 Notice Doesn't Imply Consent To Appointment Of Named Arbitrator: Delhi High Court

The Delhi High Court bench of Justice Jyoti Singh while setting aside an arbitral award has observed that unilateral appointment of arbitrator vitiates the award and if the opposite party fails to reply to the notice under Section 21, Arbitration and Conciliation Act, 1996 (“ACA”), then such inaction cannot lead to an inference as to implied consent or acquiescence of the...

Interest Ceases To Accrue On Decretal Amount Deposited In Court Registry When Award Holder Has Knowledge Of Deposit: Delhi High Court

The Delhi High Court bench of Justices Vibhu Bakhru and Tejas Karia has held that once the Judgment Debtor deposits the decretal amount with the court registry pursuant to a court order, and the Award Holder has notice of such deposit, interest on the deposited amount ceases to accrue. Consequently, interest can only be claimed on the remaining outstanding amount, not on the sum...

Pre-Deposit Of Awarded Amount Through Bye-Laws For Entertaining Plea U/S 34 Of Arbitration Act Is Impermissible: Delhi High Court

The Delhi High Court bench of Justice Jasmeet Singh has held that Bye-laws may serve as operational guidelines, but they cannot impose conditions that conflict with statutory rights. The Court held that when there is no requirement of depositing the awarded amount as a precondition for filing an application under Section 34 of the Arbitration Act to set aside an award, any attempt...

Mandate Of MSME Council Not Automatically Terminated For Failure To Refer Dispute To Arbitration Within 90 Days: Delhi High Court

The Delhi High Court bench of Justice Manoj Kumar Ohri has held that the mandate of the MSME Facilitation Council to refer a dispute to arbitration under Section 18(3) of the Micro, Small and Medium Enterprises Development (MSMED) Act, following the failure of conciliation under Section 18(2), is not automatically terminated if the referral is not made within 90 days as prescribed...

[Arbitration Act] S.37 Not An Efficacious Alternate Remedy After Rejection Of Plea U/S 34 Seeking Enhanced Compensation: Bombay High Court

The Division Bench of Bombay High Court comprising Justices Jitendra Jain and M.S. Sonak allowed writ petitions seeking enhanced solatium under National Highways Act, 1956 in view of the decision of the Supreme Court in Union of India v Tarsem Singh and Ors. While doing so the Court rejected the argument of the Respondent that the petitions ought to be dismissed as the Petitioners...

Execution Of Discharge Voucher Not A Bar To Claim Higher Compensation If Provided For By IRDA Circular: Calcutta High Court

The Calcutta High Court bench of Justice Aniruddha Roy has held that once the liability or quantum of a claim under an insurance policy is established, the Insurance Company must not withhold the claim amount and must comply with Insurance Regulatory and Development Authority (IRDA) Circular which entitles the Insured to claim a higher amount. It further held that the Circular...

Appointment Of Arbitrator As 'Observer' In Another Matter Does Not Render Him Ineligible Under 5th & 7th Schedule Of A&C Act: Delhi High Court

The Delhi High Court bench of Justice Jasmeet Singh has held that the appointment of an arbitrator as an observer in a matter unrelated to the arbitration dispute does not constitute de facto or de jure ineligibility under the Fifth or Seventh Schedules of the Arbitration and Conciliation Act, 1996 (Arbitration Act). Consequently, the arbitrator's mandate cannot be terminated on this...

Intent Of S.11(6) Of Arbitration Act Is Not To Confer Jurisdiction On Courts Incompetent To Entertain Such Applications: Delhi High Court

The Delhi High Court bench of Justice Sachin Datta has held that the intent of Section 11(6) of the Arbitration and Conciliation Act, 1996 (Arbitration Act) cannot be interpreted to confer jurisdiction on a court that is otherwise incompetent to entertain an application under this provision. Brief Facts: The present petitions arise from two Home Loan Agreements dated 31.03.2018...

If No Bonafide Negotiations Occur After Arbitration Notice, Period Cannot Be Excluded From Limitation: Delhi High Court

The Delhi High Court bench of Justice Sachin Datta has held that if, after the issuance of a notice invoking arbitration, no bonafide negotiations take place between the parties, and the limitation period for filing an application under Section 11(6) of the Arbitration and Conciliation Act, 1996 (Arbitration Act) expires, the time allegedly spent in such negotiations cannot be excluded...