Arbitration Monthly Round-Up: December 2023

Supreme Court Arbitration Clauses In Unstamped Agreements Enforceable : Supreme Court 7-Judge Bench Overrules 'NN Global' Decision Case Title: In Re Interplay Between Arbitration Agreements Under The Arbitration And Conciliation Act 1996 And The Indian Stamp Act 1899 Curative Pet(C) No. 44/2023 In R.P.(C) No. 704/2021 In C.A. No. 1599/2020 Citation: 2023 LiveLaw (SC) 1049 A seven-judge bench of the Supreme Court on Wednesday (December 13) ruled that arbitration clauses in unstamped or inadequately stamped agreements are enforceable. Insufficiency of stamping does not make the agreement void or unenforceable but makes it inadmissible in evidence. However, it is a curable defect as per the Indian Stamp Act, the Court pointed out. The Court overruled the judgment rendered by a 5-judge bench in April this year in M/s. N.N. Global Mercantile Pvt. Ltd. v. M/s. Indo Unique Flame Ltd. And Ors which had by a 3:2 majority held that unstamped arbitration agreements are not enforceable. The bench comprising Chief Justice of India DY Chandrachud, Justice Sanjay Kishan Kaul, Justice Sanjiv Khanna, Justice B R Gavai, Justice Surya Kant, Justice JB Pardiwala, and Justice Manoj Misra passed the judgement in the case In Re Interplay Between Arbitration Agreements Under The Arbitration And Conciliation Act 1996 And The Indian Stamp Act 1899. Arbitration Agreement Can Bind Non-Signatories: Supreme Court Upholds 'Group Of Companies' Doctrine Case: Cox and Kings Ltd v. SAP India Pvt Ltd | ARBIT. PETITION No. 38/2020 Citation: 2023 LiveLaw (SC) 1042 A Constitution Bench of the Supreme Court on Wednesday (December 6) held that an arbitration agreement can bind non-signatories as per the "group of companies" doctrine. "The 'group of companies' doctrine must be retained in the Indian arbitration jurisprudence considering its utility in determining the intention of the parties in the context of complex transactions involving multiple parties and multiple agreements," the Court observed. Principle Of 'Alter Ego' Or 'Piercing Corporate Veil' Not The Basis For 'Group Of Companies' Doctrine : Supreme Court Case: Cox and Kings Ltd v. SAP India Pvt Ltd | ARBIT. PETITION No. 38/2020 Citation: 2023 LiveLaw (SC) 1042 While approving the 'group of companies' doctrine in the arbitration law jurisprudence, the Supreme Court clarified that the principle of "alter ego" or "piercing the corporate veil" cannot be the basis for applying this doctrine. The Constitution Bench comprising Chief Justice of India DY Chandrachud, Justice Hrishikesh Roy, PS Narasimha, JB Pardiwala and Manoj Misra was answering a reference which doubted the "group of companies" doctrine which allows non-signatory companies to be bound by arbitration agreement. Cancellation Of Deed Is Action In Personam, Not In Rem; It Is Arbitrable : Supreme Court Case Title: SUSHMA SHIVKUMAR DAGA vs. MADHURKUMAR RAMKRISHNAJI BAJAJ., Diary No.- 1164 - 2022 Citation: 2023 LiveLaw (SC) 984 Recently, the Supreme Court (December 15) allowed arbitration between the parties in a property dispute based on the broad language of the arbitration clause in the Tripartite Agreements. The Court rejected the argument that since the suit was for cancellation of a deed, the dispute was not arbitrable, as the action was in rem. The Court held that cancellation of a deed was an action in personam and hence arbitrable. The Court observed that the Tripartite Agreements formed the basis of all subsequent agreements entered between the parties, including the ones that gave rise to the present dispute. In the instant case, cancellation of the Conveyance Deed and registered Development Agreements was sought. Pertinently, there was no arbitration clause in the Conveyance Deed and Development Agreements. However, considering that these agreements find their source in the two Tripartite Agreements, which, in turn, contained a broad arbitration clause, the view taken by the below court for referring the matter to arbitration was affirmed. Allahabad High Court Tribunal Didn't Meet Objections Raised, Allahabad High Court Sets Aside Arbitral Award, Remits Case To Tribunal Case Title: National Highway Authority Of India v. Parimal Bajpai And 3 Others [Appeal Under Section 37 Of Arbitration And Conciliation Act 1996 No. - 901 of 2023] The Allahabad High Court has held that under Section 34(4) of the Arbitration and Conciliation Act, 1996, the High Court can set aside an arbitral award and remit the case back to the Arbitral Tribunal for a fresh decision. The bench comprising Justice Ajay Bhanot placed reliance on the judgment of the Apex Court in National Highways Authority of India Vs. P. Nagaraju and Ors to hold thus: “In light of the provisions of Section 34 of Arbitration and Conciliation Act, 1996 and the appellate powers of this Court, interest of...

Arbitration Monthly Round-Up: December 2023

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