Arbitration Cases Weekly Round-Up: 25th September To 1st October

Supreme Court: Contractor Claiming Loss Of Profits Due To Delayed Execution Must Prove That Other Works Were Lost Due To Delay: Supreme Court Case Title: Batliboi Environmental Engineers Ltd vs Hindustan Petroleum Corporation Ltd & Anr. The Supreme Court Bench comprising Justice Sanjiv Khanna and Justice M.M. Sundresh, has held that in arbitral proceedings where the execution of a contract is delayed and the Contractor claims loss arising from depletion of income, then the Contractor must prove that there was alternative work available for him/her by placing on record invitation to tender, which were rejected by the Contractor due to incapacity to undertake other work. High Courts: Allahabad High Court: Doctrine Of Severability Applicable To Arbitral Awards, If Good Part Can Survive On Its Own: Allahabad High Court Case Title: Hindustan Steelworks Construction Ltd vs New Okhla Industrial Development The Allahabad High Court has held that doctrine of severability can be applied to arbitral awards for separating the good part from the bad, provided they are independent of each other and findings in the award are not substituted by the Court. Bombay High Court: Unstamped Agreement, Quantum Not Disputed, Court Can Collect While Deciding Section 11 Petition: Bombay High Court Case Title: John Cockerill India Ltd vs Sanjay Kamlakar Navare The High Court of Bombay has held that the Court exercising power under Section 11 of the A&C Act can itself determine and collect the unpaid or deficit stamp duty payable upon the unstamped or insufficiently stamped agreement. Delhi High Court: Application Seeking Extension Of Time, Can It Be Moved After Expiry Of Mandate Of Arbitrator ? Delhi High Court To Examine Case Title: ATS Infrastructure Ltd vs Rasbehari Traders The High Court of Delhi is set to examine an important issue regarding the extension of time for the delivery of the arbitral award. The bench of Justice Yogesh Khanna would decide the issue that whether an application ought to be moved by the parties under Section 29A(4) during the course of mandate of the arbitrator or can be moved even late. Right Of Pledgee To Sell Pledged Shares Is Subservient To The Pledgor’s Right To Redeem Such Shares: Delhi High Court Case Title: DLF Ltd vs PNB Housing Finance Ltd The High Court of Delhi has held that the right of the pledgee to sell the pledged shares for default to repay the loan amount is subservient to the right of the pledgor to redeem such shares under Section 177 of Indian Contract Act. Accrual Of Cause Of Action At A Place Is Not A Consideration For Determining Jurisdiction For The Purpose Of Section 11 Of A&C Act: Delhi High Court Case Title: GR Builders vs Metro Speciality Hospitals Pvt Ltd The Delhi High Court has held that the accrual of cause of action at a place for pursuing a substantive legal action is not a consideration for determining jurisdiction for the purposes of Section 11 of the A&C Act. Widening And Improvement Of An Existing Road Would Be A ‘Bypass’ When Such Improvement Diverts Traffic From Project Road Resulting In Loss Of Toll Revenue: Delhi High Court Case Title: NHAI vs GMR Ambala Chandigarh Expressway Pvt Ltd The High Court of Delhi has held that development, improvement, widening and construction over an existing narrow highway would be considered to be a ‘bypass’ when such improvement makes the road viable for heavy vehicles and becomes an alternate road, resulting in reduction of the traffic from the project highway, affecting the toll revenue. Delay In The Handing Over The Work Front Affecting Completion Is A Material Breach: Delhi High Court Case Title: NHAI vs D.S. Toll Roads Pvt Ltd The High Court of Delhi has held that delay in the handing over of the Right of Way is a material breach of contract if it affects the issuance of Completion Certificate or delays the Commercial Date of Operation (COD). Himachal Pradesh High Court: Arbitrator Appointed Under The Provisions Of National Highways Act Is Bound By Section 29A Of The A&C Act, Award Must Be Delivered Without Undue Delay: Himachal Pradesh High Court Case Title: Puran Singh vs Land Acquisition Officer The Himachal Pradesh High Court has held that an arbitrator appointed under the provisions of National Highways Act, 1956 is bound to deliver an arbitral award within the time limit prescribed under Section 29A of the A&C Act. Bank Guarantee Expired During The Stay Period, Must Be Renewed Once The Order Granting Stay Is Vacated Due To Withdrawal Of Petition: Himachal Pradesh High Court Case Title: Rudra-XI Infrastructure Pvt Ltd vs Municipal Corporation of Shimla The Himachal Pradesh High Court has held that Bank Guarantee expired during the stay period, must be renewed once the order granting stay is vacated due to withdrawal of petition.

Arbitration Cases Weekly Round-Up: 25th September To 1st October

Parina Katyal

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