Writ Petition Can't Be Entertained Against Every Interlocutory Order Issued By Arbitral Tribunal: Delhi High Court

The Delhi High Court bench of Justice Sanjeev Narula has held that the scope of judicial interference under Article 226 is limited when challenging an Arbitral Tribunal's order concerning the conduct of arbitration proceedings. The bench held that a writ petition cannot be entertained against every interlocutory order related to case management. Such orders fall within...

Principles Of Equity And Fairness Not Applicable To Commercial Matters, Relief Is Governed By Contract: Delhi High Court

The Delhi High Court bench of Justice C Hari Shankar has held that commerce is devoid of equity. The bench held that commercial transactions are driven by a harsh reality, and the principle of universal brotherhood does not extend to commercial dealings. In these transactions, there is no obligation on the arbitrator for fairness, kindness, or equity, and no court can mandate...

Arbitral Tribunal's Decision To Award Damages For Loss Of Profit Is Patently Illegal If It Contradicts Contract: Delhi High Court

The Delhi High Court division bench of Justice Vibhu Bakhru and Justice Tara Vitasta Ganju has held that an Arbitral Tribunal's decision to award damages for loss of profit is vitiated by patent illegality if it contradicts the express terms of the agreement between the parties. The bench held that: “It is essential to maintain the bargain entered into between the parties....

Settlement Arising From Contract Containing Arbitration Clause Must Be Resolved Through Arbitration: Karnataka High Court

The Karnataka High Court division bench of Justice Anu Sivaraman and Justice Anant Ramanath Hegde has held that the right to enforce the settlement has to be through arbitration as the alleged settlement is in respect of a transaction arising from the contract which contained an arbitration clause. Brief Facts: M/s S P Sai Technologies (Respondent) filed a suit for recovery of...

Formal Contract Signature Not Required To Enforce Arbitration Clause If Parties Are Ad Idem: Madras High Court

The Madras High Court division bench of Justice Krishnan Ramasamy has held that if it is proved that if it is established that the parties are ad idem, a formal contract signature by the other party is not necessary to enforce the arbitration agreement. Further, the bench held that by acting upon the Purchase Orders, the party implicitly accepted the terms, including the...

Doctrine Of Separability; Arbitration Agreement Survives Termination Of Main Contract: Bombay High Court

The Bombay High Court bench of Justice R. G. Avachat and Justice Neeraj P. Dhote has held that an arbitration agreement survives the termination of the main contract facilitating the resolution of disputes arising under or in connection with the contract. Therefore, the bench dismissed a writ petition noting that the dispute was arbitral and fell within the ambit of the...

Non-Signatories Bound By Arbitration Clause When Purchasing Property From Agreement Parties: Karnataka High Court

The Karnataka High Court bench of Justice Anu Sivaraman and Justice Anant Ramanath Hegde has held that a person who is not a party to the arbitration agreement but buys property from someone who is a party to the agreement is still bound by the arbitration clause that applies to their vendors. The High Court noted that the Constitution Bench of the Supreme Court decision in Cox and...

Legal Heirs Of Deceased Party To Arbitration Agreement Comes Under "Legal Representatives" Under Section 2(1)(g) Of Arbitration Act: Telangana High Court

The Telangana High Court bench of Justice P.Sam Koshy and Justice Sambasivarao Naidu has held the legal heirs of a deceased person who was a party to an arbitration agreement fall under the definition of "legal representative" as specified in Section 2(1)(g) of the Arbitration and Conciliation Act, 1996. The bench held that it encompasses persons who manage or claim to inherit...

Lis Pendens Principle Applies To Property Acquired During Section 9 Arbitration Proceedings: Karnataka High Court

The Karnataka High Court bench of Justice Anu Sivaraman and Justice Anant Ramanath Hegde has held that an individual who acquires property that is the subject of a proceeding under Section 9 of the Arbitration and Conciliation Act, 1996, is subject to the principle of lis pendens. The issue before the High Court was whether the transaction was affected by the principle of lis pendens...

Arbitrators Must Separately Calculate Fees For Claims And Counterclaims In Ad Hoc Arbitration: Delhi High Court

The Delhi High Court bench of Justice Jasmeet Singh has set aside computration of fee by an arbitration on the basis decision in Rail Vikas Nigam Ltd. vs. Simplex Infrastructures Ltd which was later set aside in ONGC Ltd. v. Afcons Gunanusa JV, 2022 LiveLaw (SC) 723. The bench held that in ad hoc arbitration, the arbitrator must calculate fees separately for claims and...

Writ Jurisdiction Can't Be Invoked In View Of Arbitration Clause Except For Specific Circumstances: Gauhati High Court

The Gauhati High Court bench of Justice Michael Zothankhuma has held that writ jurisdiction cannot be invoked in the presence of an arbitration clause, except under specific circumstances. The bench observed that the Petitioner did not demonstrate a violation of fundamental rights, principles of natural justice, or that the proceedings were without...

Unilateral Appointment Of Arbitrator & Non Service Of Notice : Madras High Court Sets Aside Arbitral Award

The Madras High Court bench of Justice Krishnan Ramasamy has set aside an arbitral award where the opposite party proceeded with arbitration unilaterally and appointed the Arbitrator without any intimation to the claimants. Further, the claimants neither received notices of hearing nor appeared before the Tribunal, and consequently, the Arbitrator did not afford any opportunity...