Arbitration Requires Dispute Arising From Agreement, Unrelated Disputes Ineligible for Arbitration: Rajasthan High Court

The Rajasthan High Court bench of Justice Rekha Borana held that arbitration hinges on the presence of a dispute arising from the agreement between the involved parties. The bench held that any dispute unrelated to the terms of the agreement between the parties cannot be subject to the arbitration clause and therefore cannot be referred to arbitration under the...

Mere Initiation Of Arbitration Proceedings Doesn't Bar Corporate Debtor From Pursing Remedies Under IBC: Delhi High Court Allows Section 11(6) Petition

The Delhi High Court bench of Justice Neena Bansal Krishna held that mere initiation of the arbitration proceedings does not bar the corporate debtor from pursuing his other remedies including those under the Insolvency Bankruptcy Code. Brief Facts: The Respondents, who were the founders/promoters of Petitioner No.1, approached OFB Tech Private Limited and Petitioner No.2 with...

[Arbitration Act] Court Should Not Issue Broad Injunctions Under Section 9 If Dispute Involves Monetary Claim: Rajasthan High Court

The Rajasthan High Court bench of Justice Dinesh Mehta and Justice Rajendra Prakash Soni has held that while passing interim order or taking interim measure under Section 9 of the Arbitration and Conciliation Act, 1996, the court is required to have a prima-facie grasp of the dispute and claim of the parties. The bench held that the court should look at the nature of the controversy...

[Arbitration Act] Non-Disclosure Of Section 9 Petition In Another Matter Can't Be Termed As 'Egregious Fraud': Delhi High Court

The Delhi High Court bench of Justice Vibhu Bakhru and Justice Tara Vitasta Ganju held that non-disclosure of the petition under Section 9 of the Arbitration and Conciliation Act, 1996 in another matter cannot be termed as a case of egregious fraud, which would disentitle a party from pursuing its petition under Section 9. Section 9 of the Arbitration and Conciliation Act, 1996...

Arbitration Weekly Roundup: 03rd June 2024 To 09th June 2024

Delhi High Court [Arbitration Act] Section 29A Allows Extension Requests Even After Arbitrator's Mandate Expires: Delhi High Court Case Title: Glowsun Powergen Private Limited Vs Hammond Power Solutions Private Limited Case Number: O.M.P.(MISC.)(COMM.) 120/2024 The Delhi High Court bench of Justice Dinesh Kumar Sharma held that Section 29A of the Arbitration and Conciliation...

Substitute Co-Arbitrator Cannot Be Appointed Under Section 15(2) Of Arbitration Act After Mandate Termination By Operation of Law: Gujarat High Court

The Gujarat High Court has ruled that a substitute Co-Arbitrator cannot be appointed under Section 15(2) of the Arbitration and Conciliation Act, 1996 (A&C Act) when an arbitrator's mandate is terminated by the operation of law.Chief Justice Sunita Agarwal presiding over the case, stated, "As discussed above, this is not a case of withdrawal from the office by the Arbitrator, but rather...

[Arbitration Act] Section 29A Allows Extension Requests Even After Arbitrator's Mandate Expires: Delhi High Court

The Delhi High Court bench of Justice Dinesh Kumar Sharma held that Section 29A of the Arbitration and Conciliation Act, 1996 does not preclude the consideration of applications for extension of the arbitrator's mandate filed after the expiration of the mandate. Brief Facts: The Petitioner approached the Delhi High Court (“High Court”) and filed a petition under Section 29A of...

Arbitration Weekly Round Up: 26th May 2024 To 2nd June 2024

Delhi High Court [Arbitration Act] Awarding Interest Rate Is Discretion Of Arbitrator, Can't Be Claimed As Matter Of Right: Delhi High Court Case Title: M/S Space 4 Business Solution Pvt Ltd Vs The Divisional Commissioner Principal Secretary And Anr. Case Number: ARB.P. 360/2024 The Delhi High Court bench of Justice Neena Bansal Krishna held that awarding interest rate is...

Arbitration Monthly Round Up: May 2024

Supreme Court Arbitrator's Power Under Section 32(2)(c) Can Be Exercised Only If Continuation Of Proceedings Has Become Unnecessary Or Impossible: Supreme Court Case Title: Dani Wooltex Corporation & Ors. vs SheilProperties Pvt. Ltd. & Anr. Case Number: CIVIL APPEAL NO.6462 OF 2024 The Supreme Court bench of Justice Abhay S. Oka and Justice Pankaj Mithal held that...

Duty Of Courts To Examine And Reject Time Barred Claims To Prevent Parties From Being Drawn Into Costly Arbitration Processes: Gauhati High Court

The Gauhati High Court bench of Justice Michael Zothankhuma has held that it is the duty of courts to examine and reject time-barred claims to prevent parties from being trapped in protracted and costly arbitration processes. Brief Facts: The Petitioner approached the Gauhati High Court (“High Court”) and filed an application Section 11(6) of the Arbitration and Conciliation...

Ministry Of Finance Pushes For Mediation Over Arbitration In Domestic Public Procurement Contracts

The Department of Expenditure under the Ministry of Finance, Government of India, has recently released guidelines delineating the use of arbitration and mediation in domestic public procurement contracts. The guidelines recommended the restriction of arbitration to disputes with a value less than Rs. 10 crore. Further, it states that government departments/ entities/ agencies should...

Allahabad High Court Dismisses Writ Petition Against Facilitation Council Award For Lack Of Mandatory Pre-Deposit U/S 19 MSME Act

The Allahabad High Court has dismissed a writ petition challenging the award passed by the Zonal Micro and Small Enterprises, Facilitation Council (MSEFC), Meerut Zone, Meerut under Section 18 of the Micro, Small and Medium Enterprises Development Act, 2006 as the petitioners, Tamil Nadu Generation And Distribution Corporation Limited and others, had refused to make the mandatory...