Supreme Court Weekly Digest With Subject /Statute Wise Index [May 11 to 20]

Citations 2024 LiveLaw (SC) 391 to 2024 LiveLaw (SC) 414Arbitration and Conciliation Act, 1996Withdrawal of arbitrator – An Arbitrator always has the option to withdraw for any reason. Therefore, he can withdraw because of the parties' noncooperation in the proceedings. But in such a case, his mandate will be terminated, not the arbitral proceedings. (Para 13) Dani Wooltex Corporation v. Sheil Properties Pvt. Ltd., 2024 LiveLaw (SC) 405Section 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 Pvt. Ltd., 2024 LiveLaw (SC) 405BailIn the matters relating to liberty of a citizen every single day counts. Keeping the matter for regular bail pending for a period of almost 11 months deprives the petitioner of his valuable right of liberty. Amandeep Singh Dhall v. Central Bureau of Investigation, 2024 LiveLaw (SC) 399Chartered Accountants Act, 1949The Supreme Court upheld a rule issued by the Institute of Chartered Accountants of India (ICAI) barring Chartered Accountants from accepting more than the "specified number of tax audit assignments" (at present, the upper limit is set at 60) in a financial year. The rule (para 6.0 of Chapter VI of the Council Guidelines No. 1-CA(7)/02/2008 dt. 08/08/2008 and the subsequent amendments) are...

Supreme Court Weekly Digest With Subject /Statute Wise Index [May 11 to 20]

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