Arbitration Monthly Round-Up: September 2023

Supreme Court: 'Every Arbitrator May Not Be Legally Trained, Some Decisions Are Based On Equity' : Supreme Court Explains Scope Of Judicial Interference In Arbitral Awards Case Title: Batliboi Environmental Engineers Limited vs Hindustan Petroleum Corporation Ltd and Anr. The Supreme Court bench comprising Justice Sanjiv Khanna and Justice M.M. Sundresh, has held that while setting aside an arbitral award for being violative of Section 28(3) of the Arbitration and Conciliation Act, 1996, it must be considered that the Arbitrator is empowered to interpret the contract terms reasonably. High Courts: Andhra Pradesh High Court: Execution Petition For Arbitration Award Would Lie Only Before The Designated Commercial Courts: Andhra Pradesh High Court Case Title: Obulapuram Mining Company vs R.K. Mining Pvt Ltd The High Court of Andhra Pradesh has held that an execution petition for an arbitration award can only lie before the designated Commercial Courts and no other Court viz., Civil/District Court can entertain such an application. Bombay High Court Court Can Within The Limited Scope Of Judicial Scrutiny Under Section 11 Of The A&C Act, Examine If Claims Are Frivolous Or Meritless: Bombay High Court Case Title: 22Light v. OESPL Pvt Ltd, Commercial Arbitration Application No. 215 of 2021 The High Court of Bombay has held that despite the limited scope of judicial scrutiny under Section 11 of the A&C Act, the Court would refuse to appoint the arbitrator when on a prima facie scrutiny of the material on record, it can come to a conclusion that claims sought to be arbitrated are frivolous and meritless. The bench of Justice Manish Pitale refused to appoint an arbitrator when the claims sought to be arbitrated by the petitioner were pre-mature as per the terms of the agreement. Calcutta High Court: Security Offered By An Award-Debtor For Stay Of Arbitral Award Must Be ‘Clean, Unblemished With Good Exchange Value’: Calcutta High Court Case: Sarat Chatterjee and Co. (VSP) Private Limited v Sri Munisubrata Agri International Limited (Formerly known as LMJ International Ltd.) and Anr. The Calcutta High Court has recently held that the security furnished by an award-debtor for stay of an arbitral award must be “clean, unblemished and with good exchange value.” Sarat Chatterjee & Co. (“applicants”) had argued that that an earlier division-bench judgement of 2015, had already secured 10,000 metric tonnes of Coke equating to more than the total security value of the award of Rs 18.21 crores in favour of the Munisubrata (“respondents”), and that the Court could now affect the sale of the aforesaid coke, in lieu of the security payable. In refuting the arguments of the applicants, while expressing its insecurity about the security proposed by them, a single-bench of Justice Moushumi Bhattacharya held: “The Court is empowered to impose conditions on the award-debtor who seeks stay of an Award and must look to the provisions of the CPC for taking recourse to the principles for grant of stay of a decree or order. The Court must simply ensure that the security offered by the award-debtor has good currency value and is not an empty reassurance given by the award-debtor on a speculated value of unsold goods. The limited protection by the Division Bench for sale of the 10,000 MTs of Met Coke in 2015 cannot be resurrected after years to urge that the award-holder stands secured to the extent of the projected sale value of the goods amounting to Rs. 45 crores. Besides the uncertainties listed above, the 10,000 MTs of Met Coke has admittedly not been sold till date and even the sale was mired in litigation.” Arbitration Act | Tribunal’s Mandate Terminates U/S 29A Unless Extended During Subsistence: Calcutta High Court Case Title: Rohan Builders (India) Pvt Ltd vs Berger Paints India Ltd The Calcutta High Court has recently held that the mandate of an arbitral tribunal is held to be terminated under Section 29A of the Arbitration & Conciliation Act, 1996, (“1996 Act”), unless the same is extended during its subsistence, in the absence of which, an arbitrator would become de jure inadmissible. Security Offered By An Award-Debtor For Stay Of Arbitral Award Must Be ‘Clean, Unblemished With Good Exchange Value’: Calcutta High Court Case Title: Sarat Chatterjee and Co. (VSP) Pvt Ltd vs Sri Munisubrata Agri International Ltd and Anr. The Calcutta High Court has recently held that the security furnished by an award-debtor for stay of an arbitral award must be “clean, unblemished and with good exchange value.”Delhi High Court: Principles Of Natural Justice Not Violated When The Opportunity To Make Oral Submission Is Not Availed: Delhi High Court Case Title: CASA2 STAYS PVT LTD v. BBH COMMUNICATIONS INDIA PVT LTD The High Court of Delhi has held that the principles of natural justice are not...

Arbitration Monthly Round-Up: September 2023

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