Supreme Court Monthly Digest May 2024

Citations 2024 LiveLaw (SC) 340 to 2024 LiveLaw (SC) 414AdvertisementGuidelines for Prevention of Misleading Advertisements and Endorsements of Misleading Advertisements, 2022; Guideline No. 8, 12 & 13 – Held, advertisers/advertising agencies and endorsers are equally responsible for issuing false and misleading advertisements. Such endorsements that are routinely made by public figures, influencers, celebrities etc. go a long way in promoting a product. It is imperative for them to act with a sense of responsibility when endorsing any product and take responsibility for the same. It is the duty of manufacturers, service providers, advertisers and advertising agencies to ensure that the trust of the consumer is not abused or exploited due to sheer lack of knowledge or inexperience. Due diligence is to be undertaken for endorsement of advertisements and requires a person who endorses a product to have adequate information about, or experience with a specific good, product or service that is proposed to be endorsed and ensure that it must not be deceptive. (Para 21) Indian Medical Association v. Union of India, 2024 LiveLaw (SC) 381Arbitration and Conciliation Act, 1996Section 25 – Termination of arbitral proceedings – The learned Arbitrator is bound to terminate the proceedings on grounds of failure of the claimant to file his statement of claim in accordance with Section 23, in view of Section 25(a). If the respondent to the proceedings fails to file a statement of defence in accordance with Section 23, in the light of Section 25(b), the learned Arbitrator is bound to proceed further with the arbitral proceedings. Even if the claimant, after filing a statement of claim, fails to appear at an oral hearing or fails to produce documentary evidence, the learned Arbitrator is expected to continue the proceedings as provided in Section 25(c). Held, The fact that clause (c) of Section 25 enables the Arbitral Tribunal to proceed in the absence of the claimant shows the legislature's intention that the claimant's failure to appear after filing the claim cannot be a ground to say that the proceedings have become unnecessary or impossible. (Para 10, 12 & 15) Dani Wooltex Corporation v. Sheil Properties Pvt. Ltd., 2024 LiveLaw (SC) 405Section 32 – Grounds for termination of arbitral proceedings – Section 32 provides for the termination of the arbitral proceedings in the following contingencies: a. On making final arbitral award; b. On the Claimant withdrawing his claim as under Section 32(2)(a); c. Parties agreeing on termination of arbitral proceedings as under Section 32(2)(b); or d. When the Arbitral Tribunal finds that the continuation of proceedings has become unnecessary or impossible for any other reason, as under Section 32(2)(c). Held, Section 32(2)(c) can be invoked for reasons other than those mentioned in Section 32(2)(a) & 32(2)(b). Under Section 32(2)(c), mere existence of a reason for terminating the proceedings is not sufficient and reason must be such that the continuation of the proceedings has become unnecessary or impossible. Further held, if, after filing a claim, the claimant fails to appear at an oral hearing or fails to produce documentary evidence, it cannot be said that the continuation of proceedings has become unnecessary and the learned Arbitrator can proceed with the arbitral proceedings. (Para 14 & 15) Dani Wooltex Corporation v. Sheil Properties Pvt. Ltd., 2024 LiveLaw (SC) 405Section 32(2)(c) - Termination of arbitration proceedings on grounds that the continuation of proceedings has become unnecessary or impossible – Abandonment by the claimant of his claim makes the arbitral proceedings unnecessary. Mere absence in proceedings or failure to participate does not, per se, amount to abandonment. Only if the established conduct of a claimant is such that it leads only to one conclusion that the claimant has given up, his/her claim can an inference of abandonment be drawn. Held, there is no material on record to conclude that claimant had abandoned its claim. The finding of the learned Arbitrator that there was abandonment of the claim is not based on any documentary or oral evidence on record. Hence, the finding is entirely illegal. (Para 16 & 20) Dani Wooltex Corporation v. Sheil Properties Pvt. Ltd., 2024 LiveLaw (SC) 405Section 32(2)(c) - Termination of arbitration proceedings on grounds that the continuation of proceedings has become unnecessary or impossible – Abandonment by the claimant of his claim makes the arbitral proceedings unnecessary. Only because a claimant, after filing his statement of claim, does not move the Arbitral Tribunal to fix a date for the hearing, the failure of the claimant, per se, will not amount to the abandonment of the claim. Held, the failure of the claimant to request the Arbitral Tribunal to fix a date for hearing, per se, is no ground to conclude that the proceedings have become unnecessary. (Para 21) Dani Wooltex Corporation v. Sheil Properties...

Supreme Court Monthly Digest May 2024

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