Arbitration Monthly Digest: February 2025

Supreme Court 'Oral Undertaking Falls Within Scope Of Arbitration Clause' : Supreme Court Upholds Award Against Husband For Operation In Wife's Demat Account Case Title: AC CHOKSHI SHARE BROKER PRIVATE LIMITED VERSUS JATIN PRATAP DESAI & ANR. Citation : 2025 LiveLaw (SC) 178 The Supreme Court today (February 10) held that an oral contract undertaking joint and...

Construction Of Terms Of Contract Must Be Primarily Decided By Arbitrator, Not Court U/S 34 Of Arbitration Act: Delhi High Court

The Delhi High Court bench of Justice Dinesh Kumar Sharma has held that Construction of the terms of the contract is primarily for the arbitrator to decide, unless it is found that such a construction is not at all possible. Brief Facts: After a competitive bidding process, a contract was entered into between the petitioner and the respondent. The contract required the supply of 8000...

Arbitral Award Can Be Set Aside As 'Patently Illegal' If View Taken By Arbitrator Is Not A Plausible One: Madras High Court

The Madras High Court bench of Justice P.B. Balaji has held that when the view taken by the Arbitrator is not even a plausible view, an award passed by such an arbitrator can be set aside under section 34 of the Arbitration act on the ground of patent illegality. Brief Facts: The petitioner awarded a contract to the respondent for the purpose of designing and constructing...

Govt Authority Must Furnish Security Before Getting Stay On Award U/S 36(3) Of A&C Act, No Special Treatment Can Be Given: Calcutta High Court

The Calcutta High Court bench of Justice Shampa Sarkar has held that special treatment cannot be given to the government while hearing a petition seeking stay on the enforcement of the award under section 36(3) of the Arbitration Act. Every petitioner including the government will have to furnish security or deposit the awarded amount before a stay on the enforcement of the award can...

[A&C Act] Non-Payment Of Part Of Mutually Agreed Amount After Settlement Of Dispute Not An Arbitrable Issue Under Arbitration Agreement: Andhra Pradesh HC

The Andhra Pradesh High Court has upheld the dismissal of an application filed under section 8 of the Arbitration and Conciliation Act, holding that once an amount has been mutually decided by the parties, the dispute itself is resolved and no arbitrable issue remains for consideration. A Division Bench of Justice Ravi Nath Tilhari and Justice V. Srinivas pointed out that non-payment of...

Supreme Court Reiterates Narrow Scope Of Interference Under Section 37 Arbitration Act

The Supreme Court reiterated that in appeal under Section 37 of the Arbitration and Conciliation Act, the Court has a narrower scope to review the arbitral award if the award has already been upheld under Section 34 (application for setting aside arbitral awards). Reliance was placed on the recent decision in Larsen Air Conditioning and Refrigeration Company vs Union of India, wherein the...

Arbitration Weekly Round-Up [27th January - 2nd February 2025]

Supreme Court Arbitration Act | Appellate Courts Can't Reassess Awards, Must Limit Enquiry On Public Policy Breach : Supreme Court Case Title: SOMDATT BUILDERS –NCC – NEC(JV) VERSUS NATIONAL HIGHWAYS AUTHORITY OF INDIA & ORS. Citation : 2025 LiveLaw (SC) 115 The Supreme Court reaffirmed that arbitral awards should only be interfered with in cases of...

Executing Courts Can't Annul Arbitral Awards Solely On Ground Of Unilateral Appointment Of Arbitrator: Madras High Court

The Madras High Court bench of Justice N. Sathish Kumar has observed that the issue of ineligibility of the arbitrator cannot be raised during the pendency of the execution proceedings. The court held that the Executing Courts cannot suo motu dismiss the Execution Petition(s) solely on the ground of unilateral appointment of an arbitrator. The court held that the executing...

Mere Existence Of Arbitration Clause In Agreement Does Not Oust Jurisdiction Of Civil Court To Entertain Suit: Gauhati High Court

The Gauhati High Court bench of Justice Malasri Nandi has held that merely because there is an arbitration clause providing for referring the dispute and the claim to the arbitration, the civil court's jurisdiction is not barred but the same is subject to Section 8 of the Arbitration Act, 1996. Brief Facts An agreement was entered into between the plaintiffs and the defendants...

Appeal In Commercial Dispute Arising From Arbitration Act Must Be Filed Before Commercial Appellate Court, Not HC: Orissa High Court

The Orissa High Court bench of Justice S.K. Panigrahi has held that a plain reading of Sections 6 and 10(3) of the Commercial Courts Act, 2015, leads to the conclusion that the appropriate 'court' to consider a commercial dispute, even if it arises under the Arbitration and Conciliation Act, would be the commercial court and an appeal would, therefore, lie only before the...

Writ Petition Maintainable If Arbitrator Refuses To Entertain Application U/S 3G(5) Of National Highways Act: Kerala High Court

The Kerala High Court bench of A. Muhamed Mustaque and S. Manu JJ. while hearing a writ petition has held that when an arbitrator appointed by the Central Government refuses to entertain an application u/s 3G(5) of the National Highways Act, 1956, the Courts can entertain a petition under Article 226 to the limited extent of referring the dispute to arbitration. Section 3G(5) places...

Notice To Appoint Another Arbitrator To Continue Arbitration Proceedings Satisfies Mandate Of S.21Of A&C Act: Kerala High Court

The Kerala High Court bench of Justice Syam Kumar V.M., while hearing a Section 11 petition, has held that a notice to revive a stalled arbitration proceedings by appointing another arbitrator satisfies the mandate of Section 21 of the A&C Act. Facts: The petitioner and respondent were partners of a firm named Orchard Builders and Developers; the same was registered with...