Arbitration Weekly Round-up: 15th to 21st July, 2024

Supreme Court of India Arbitration | Referral Courts Must Not Conduct Intricate Enquiry On Whether Claims Are Time-Barred : Supreme Court Clarifies 'Arif Azim' Judgment Case Title: SBI GENERAL INSURANCE CO. LTD. Versus KRISH SPINNING Citation: 2024 LiveLaw (SC) 489 The Supreme Court held that while deciding a Section 11(6) petition for an appointment of an arbitrator, the referral courts must not conduct an intricate evidentiary enquiry into the question of whether the claims raised by the applicant are time-barred and should leave that question for determination by the arbitrator. The Court said that the referral court should limit its enquiry to examining whether the Section 11(6) application has been filed within the period of limitation of three years or not. Arbitration | Dispute Regarding Full & Final Settlement Of Contract Is Arbitrable : Supreme Court Case Title: SBI GENERAL INSURANCE CO. LTD. Versus KRISH SPINNING Citation: 2024 LiveLaw (SC) 489 The Supreme Court held that if any dispute arises as to whether a contract has been discharged or not, such a dispute is arbitrable. “Once the contract has been discharged by performance, neither any right to seek performance, nor any obligation to perform remains under it. However, whether there has been a discharge of contract or not is a mixed question of law and fact, and if any dispute arises as to whether a contract has been discharged or not, such a dispute is arbitrable as per the mechanism prescribed under the arbitration agreement contained in the underlying contract.”, the Court said. Proceedings For Cheque Dishonour U/s. 138 NI Act Do Not Constitute Continuing Cause Of Action To Initiate Arbitration: Supreme Court Case Title: Elfit Arabia & Anr v. Concept Hotel BARONS Limited & Ors Citation: 2024 LiveLaw (SC) 494 The Supreme Court recently observed that initiation of proceedings under the Negotiable Instruments Act, 1881 for cheque dishonour does not constitute continuing cause of action for initiating arbitration under the Arbitration and Conciliation Act, 1996 (A&C Act). A bench of Chief Justice of India DY Chandrachud, Justice JB Pardiwala, and Justice Manoj Misra dismissed an arbitration petition seeking the appointment of an arbitrator eleven years after cheques were dishonoured, on the ground that the claims were barred by limitation. Calcutta High Court Composite Reference To Arbitration Necessary When Dispute Involves Same Subject Matter: Calcutta High Court Case Title: K2V2 Hospitality Llp Vs Limton Electro Optics Pvt. Ltd. And Ors. Case Number: AP/472/2023 The Calcutta High Court bench of Justice Sabyasachi Bhattacharyya has held allowed composite reference of two companies to arbitration noting that the two arbitration agreements refer to the self-same demised property. Moreover, it noted that both the agreements were entered into by the same proposed lessee with two co-owners of the self-same property. The bench held that: “if two different references were to be made, there would be ample scope of conflict of decision pertaining to the self-same subject matter between the co-owners of the self-same property.” 2063 Crore Arbitral Award: Calcutta High Court Directs West Bengal Government, WBIDC To Pay Amount Case Title: Government of West Bengal & Anr. Versus Essex Development Investments (Mauritius) Ltd. Case Number: A.P. (COM) 28 of 2023 with IA No. G.A. (COM) 1 of 2024 The Calcutta High Court bench of Justice Krishna Rao has rejected the petition made under Section 36 of the Arbitration and Conciliation Act, 1996 by the West Bengal Government and West Bengal Industrial Development Corporation claiming fraud in making of the arbitral award. The bench noted that the arbitral tribunal arrived upon the findings after considering the materials placed before it and the submissions made by the respective parties. Single Judge Of Commercial Division Has Jurisdiction Over Original Applications In International Commercial Arbitration: Calcutta High Court Case Title: Uphealth Holdings Inc Vs Glocal Healthcare Systems Pvt Ltd And Ors and Connected Matters Case Number: AP-COM/490/2024 IA NO: GA-COM/1/2024, GA-COM /8/2024 and Connected Matters The Calcutta High Court bench of Justice Sabyasachi Bhattacharyya has held that original applications related to International Commercial Arbitration are to be entertained by the Single Judge of the Commercial Division. Arbitral Award In Violation Of Contractual Bar Is Patently Illegal: Calcutta High Court Case Title: Union Of India Vs M/S J K Enterprise Case Number: AP/105/2021 IA NO: GA/1/2021, GA/2/2021 The Calcutta High Court bench of Justice Sabyasachi Bhattacharyya has held that an arbitral award in violation of a bar contained in the contract is beyond the arbitrator's jurisdiction. The bench held that such an award categorically ...

Arbitration Weekly Round-up: 15th to 21st July, 2024

Rajesh Kumar

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