Anti-Arbitration Suit Giving Short-Shrift To Sec 16 A&C Act Is Hit By Order 7 Rule 11(d) Of CPC: Telangana High Court Reiterates

The Telangana High Court has reiterated and clarified that suits initiated before Civil Courts to curb arbitration proceedings ignore section 16 of the Arbitration and Conciliation Act,1996, and deserve to be rejected under Order 7, Rule 11(d) as being barred by statute.The order was passed in a commercial court appeal by a Division Bench of Justice Moushumi Bhattacharya and...

Threshold To Prove Fraud & Corruption In Arbitral Award Is Much Higher Than Merely Criticising Findings Of Arbitrator: Calcutta High Court

The Calcutta High Court bench of Justice Shampa Sarkar has observed that in order to prove that the making of the award was vitiated by fraud, the petitioner would have to demonstrate that the unethical behaviour of the arbitrator surpassed all moral standards. The Court reiterated that an honest mistake or incorrect appreciation of the terms of the contract cannot be either fraud...

Arbitration Agreement Valid Without Specifying 'Applicable Law', 'Seat' Or 'Venue' If Intent To Refer Dispute To Private Tribunal Is Clear: Calcutta HC

The Calcutta High Court bench of Justice Shampa Sarkar has held that for an arbitration agreement to be binding, neither the applicable law nor the seat or venue needs to be mentioned. As long as the clause indicates that the parties had agreed and there was a meeting of minds to refer any dispute to a private tribunal for adjudication of the disputes, the clause would constitute...

Arbitral Awards Can Be Granted On The Basis Of Evidentiary Admissions: Delhi High Court

The Delhi High Court bench of Justice Prateek Jalan has observed that the power to pass an award on admissions is wide, and evidentiary admissions (admissions contained outside pleadings) can also form the basis of an arbitral award. The Court observed that while it is true that admissions in pleadings are placed on a higher footing to the extent that they may require nothing more for...

Arbitration Clause Cannot Be Invoked Again Over Matters Which Have Already Been Adjudicated: Karnataka High Court

The Karnataka High Court has said the Arbitration clause in the lease agreement cannot be invoked for matters that have already been adjudicated upon and concluded by both the Arbitral Tribunal and the competent courts.Justice Sachin Shankar Magadum held thus while dismissing a petition filed by Starlog Enterprises Limited, who had approached the court praying for the appointment of a...

[Arbitration Act] To Prove Corruption Of The Arbitrator, It Should Be Evident From The Award Itself That He Tried To Curb The Course Of Justice

The Calcutta High Court Bench of Justice Shampa Sarkar has observed that if the subject matter of the arbitral proceedings or making of the award was affected or induced by fraud or corruption, then an unconditional stay of award can be granted. However, such corruption must be prima facie evident from the award itself and an honest mistake or erroneous application of law by...

LLP Can Be Bound By Arbitration Clause Despite Not Being Signatory To LLP Agreement: Bombay High Court

The Bombay High Court bench of Justice Somasekhar Sundaresan has held that the mere fact that an LLP is not a signatory to an LLP Agreement does not, by itself, preclude it from being a party to arbitration proceedings initiated between Partners under the arbitration clause of such an agreement. The Court observed that an LLP is not a “third party” to its LLP Agreement but an...

Delhi HC Grants Interim Relief U/S 9 Of Arbitration Act By Attaching TMT Steel Bars Worth ₹69.5 Crores Made Using Coal Whose Quality Was Disputed

The Delhi High Court bench of Justice Manoj Kumar Ohri has granted interim relief to a petitioner under Section 9 of the Arbitration and Conciliation Act, 1996 to the extent of 50% of the balance outstanding claimed i.e., Rs. 69.50 Crores by attaching TMT Steel bars (finished product) of the equivalent amount in a dispute over the quality of coal delivered, which was used to manufacture...

[Arbitration Act] Limitation Does Not Stop If Initial Filing Is Non Est, Date Of Filing Must Be Reckoned From Date Of Refiling: Delhi HC

The Delhi High Court Bench of Justice Manoj Kumar Ohri has reiterated that the filing of the arbitral award under challenge along with application under Section 34 of the Arbitration and Conciliation Act is not a mere procedural formality but an essential requirement and non-filing of the same would make the application non est in the eyes of law. The Court further observed that such a...

S.17 Of Arbitration Act Casts Weighty Burden On Party To Persuade Court To Hold Onto S.9 Proceedings After Formation Of Tribunal: Telangana HC

The Telangana High Court has held that the 2015 amendment to the Arbitration and Conciliation Act grants a bouquet of protections to a party during the course of arbitral proceedings. It clarified that section 9 (3) restricts a party from seeking interim protection before a Court, once a tribunal has been constituted. After the amendment, once the Tribunal has been constituted, the parties...

Time Spent Before 'Wrong' Court Excluded U/S 14 Of Limitation Act While Calculating Limitation Period U/S 34 Of Arbitration Act: Delhi High Court

The Delhi High Court Bench of Justice Dharmesh Sharma has held that during the calculation of the limitation period of three months for the application under Section 34(1) of the Act, the time during which the applicant was prosecuting such application before the wrong court is excluded. Court noted that the proceedings in the wrong court should be bona fide, with due diligence. Brief...

Party Cannot Be Forced To Accept Arbitrator Who Has Conflict Of Interest, Violates Principles Of Natural Justice And Fair Trial: J&K High Court

The Jammu and Kashmir High Court held that a party could not be forced to accept an arbitrator who has a conflict of interest, as the same would violate the principles of a fair trial. The court held that the Perpetual Lease Deed, as well as the Byelaws, which provide for the Registrar, Cooperative Societies to be the sole arbitrator for adjudicating disputes between the petitioner and...