Arbitration Weekly Round-Up [18th November To 24th November, 2024]

Supreme Court S. 11(6) A&C Act | Referral Courts Should Limit Its Enquiry To Prima Facie Existence Of Arbitration Agreement : Supreme Court Case Title: GOQII TECHNOLOGIES PRIVATE LIMITED VERSUS SOKRATI TECHNOLOGIES PRIVATE LIMITED, Citation : 2024 LiveLaw (SC) 891 In a recent decision, the Supreme Court reiterated that the referral courts under Section 11(6) of the Arbitration & Conciliation Act, 1996 (“Act”) should refrain from conducting an in-depth factual analysis of the dispute. Instead, their role is confined to assessing the prima facie existence of an arbitration agreement. “The scope of inquiry under Section 11 of the Act, 1996 is limited to ascertaining the prima facie existence of an arbitration agreement. In the present case, the High Court exceeded this limited scope by undertaking a detailed examination of the factual matrix. The High Court erroneously proceeded to assess the auditor's report in detail and dismissed the arbitration application. In our view, such an approach does not give effect to the legislative intent behind the 2015 amendment to the Act, 1996 which limited the judicial scrutiny at the stage of Section 11 solely to the prima facie determination of the existence of an arbitration agreement.”, the bench comprising Chief Justice DY Chandrachud and Justices JB Pardiwala and Manoj Misra said. High Courts Allahbad High Court Since Award Is A Deemed Decree, Execution Can Be Initiated Anywhere Where Decree Can Be Executed: Allahabad High Court Case Title: National Highway Authority Of India And Another Versus Jagpal Singh And 2 Others Case Reference: 2024:AHC:175916 The Allahabad High Court bench of Justice Neeraj Tiwari affirmed that the enforcement of an award through its execution can be initiated anywhere in the country where the decree can be executed and there is no requirement of obtaining a transfer of the decree from the Court which would have jurisdiction over the arbitral proceeding Whether Non-Signatory Bound By Arbitration Agreement Can Be Decided By Tribunal, Not Referral Court U/S 11 Of Arbitration Act: Allahabad HC Case Title: Ram Taulan Yadav And Another versus Himanshu Kesarwani And 2 Others Case Reference: ARBITRATION AND CONCILI. APPL.U/S11(4) No. - 95 of 2023 The Allahabad High Court bench of Justice Manoj Kumar Gupta affirmed that referral court under section 11 of the Arbitration Act stage cannot examine as to whether the non-signatory is bound by the arbitration agreement or not. Such an issue requires factual determination which can be decided by the arbitral tribunal under section 16 of the Arbitration Act. Calcutta High Court Calcutta High Court Injuncts State Govt, WBIDC From Disposing Of Property In KMC Area Over Essex Arbitral Award Case Case Title: ESSEX DEVELOPMENT INVESTMENTS MAURITIUS LIMITED VS GOVERNMENT OF WEST BENGAL AND ANOTHER Case Reference: EC-COM/447/2024 The Calcutta High Court bench of Justice Shampa Sarkar has injuncted the West Bengal Government and WBIDC from disposing of subject matter of the Award in the execution petition filed by the award-holder in Essex case. Chhattisgarh High Court Enforcement Of Foreign Award Cannot Be Refused U/S 48 Of Arbitration Act Unless It Is Against Public Policy: Chhattisgarh HC Case Title: Bulk Trading S.A. Having versus Mahendra Sponge And Power Ltd. Case Reference: ARBAP No. 9 of 2023 and ARBAP No. 10 of 2023 The Chhattisgarh High Court bench of Justice Deepak Kumar Tiwari has held that enforcement of a foreign award cannot be refused under section 48 of the Arbitration Act unless it is shown that the award is against the public policy of India. The court further observed that even during Covid-19 pandemic, the Banking Sector continued to provide essential services and in the Notification, said Sector is under exception, so the award(s) could not be said to be contrary to public policy of India. Delhi High Court Court U/S 45 Of Arbitration Act Must Refer Parties To Arbitration Unless Agreement Is Void Or Inoperative: Delhi High Court Case Title: BALAJI STEEL TRADE versus FLUDOR BENIN S.A. AND ORS Citation: 2024 LiveLaw (Del) 1239 The Delhi High Court bench of Justice Dinesh Kumar Sharma affirmed that Section 45 of the Arbitration Act casts a statutory mandate on Courts to refer parties to an arbitration agreement to arbitration. The only limited exception carved in Section 45 is if the Court is of the prima facie opinion that the arbitration agreement is (a) null and void; or (b) in-operative; or (c) incapable of being performed. Unless such grounds are made out, the Court has no discretion but to refer the parties to arbitration. Pre-Requirement Of Conciliation Before Invoking Arbitration Can't Prevent Filing Of Application U/S 11 Of Arbitration Act: Delhi High Court Case Title:CENTAURUS GREEN ENERGY PRIVATE LIMITED versus RAJSHREE...

Arbitration Weekly Round-Up [18th November To 24th November, 2024]

Mohd Talha Hasan

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