All India Annual Digest Of Arbitration Cases-2022- Supreme Court And High Courts

Supreme Court:Issue Of Arbitrability Should Be Left To Arbitrator Unless On The Face It Is Found That Dispute Is Non- Arbitrable: Supreme CourtCase Title: VGP Marine Kingdom Pvt Ltd versus Kay Ellen ArnoldCitation: 2022 LiveLaw (SC) 914The Supreme Court reiterated that while considering application under Section 11(6) of the Arbitration and Conciliation Act, the dispute with respect to the arbitrability should be left to the arbitrator, unless on the face it is found that the dispute is not arbitrable.Arbitral Tribunal Must Give Reasons For Fixing Interest Rate; Award Holder Not Entitled To Interest For Delay Caused By It : Supreme CourtCase Title: Executive Engineer (R and B) versus Gokul Chandra KanungoCitation: 2022 LiveLaw (SC) 824 The Supreme Court recently held that a case where the award holder was responsible for delaying the proceedings which led to a huge lapse of time would be a fit case of exercising power under Article 142 to reduce the rate of interest on the sum of award.The Court further held that the Arbitration and Conciliation Act casts a duty upon the arbitral tribunal to give reasons as to how it deems the rate of interest to be reasonable. The bench of Justices B.R. Gavai and B.V. Nagarathna held that no interest would be payable for the period on which there were lapses on the part of the award holder. Arbitration - Court Can Undertake Preliminary Inquiry Under Section 11 To Ascertain If Dispute Is Arbitrable: Supreme CourtCase Title: Emaar India Ltd. versus Tarun Aggarwal Projects LLPCitation: 2022 LiveLaw (SC) 823 The Supreme Court has held that the High Courts while appointing the arbitrator can launch a preliminary inquiry to decide the issue of 'Excepted Matters' when an objection to that effect is taken by the respondent. The bench of Justices M.R. Shah and Krishna Murari held that if any dispute falls within the 'excepted' category provided in the contract between the parties, then it falls outside the scope of arbitration, therefore, no arbitration can happen with respect to those matters. Disputes Related To Tax Concessions Are Not Arbitrable: Supreme CourtCase Title: M/s Shree Enterprise Coal Sales Pvt Ltd. versus Union of IndiaCitation: 2022 LiveLaw (SC) 774 The Supreme Court has held that disputes related to tax concessions are not arbitrable.The division bench of Justice Dhananjaya Y Chandrachud and Justice Hima Kohli has observed that the High Court was in error in holding that the terms of e-auction provided that any dispute was arbitrable. The Apex Court ruled that undoubtedly, a contractual dispute would be amenable to being resolved by arbitration, however, in the present case, the relief related to tax concessions was not of an arbitrable nature.Court Exercising Power U/Sec 9 Arbitration Act Not Strictly Bound By CPC ; Should Not Withhold Interim Relief On Mere Technicality: Supreme CourtCase Title: Essar House Private Limited versus Arcellor Mittal Nippon Steel India LimitedCitation: 2022 LiveLaw (SC) 765The Supreme Court observed that a court exercising power under Section 9 of the Arbitration and Conciliation Act is not strictly bound by provisions of CPC and should not withhold relief on mere technicality. The Court ruled that proof of actual attempts to deal with, remove or dispose of the property with a view to defeat or delay the realisation of an impending Arbitral Award is not imperative for grant of relief under Section 9, and that a strong possibility of diminution of assets would suffice.Arbitration Clause Has To Be Given Effect Even If It Does Not Expressly State That Decision Of Arbitrator Is Final & Binding On Parties: Supreme CourtCase Title: Babanrao Rajaram Pund versus Samarth Builders & DevelopersCitation: 2022 LiveLaw (SC) 747The Supreme Court observed that an arbitration clause has to be given effect even if it does not expressly state that the decision of the arbitrator will be final and binding on the parties. The deficiency of words in agreement which otherwise fortifies the intention of the parties to arbitrate their disputes, cannot legitimise the annulment of arbitration clause, the bench comprising Justices Surya Kant and Abhay S. Oka observed.Mere Use Of Words "Arbitration" Or "Arbitrator" In A Clause Won't Make It Arbitration Agreement: Supreme CourtCase Title: Mahanadi Coalfields Ltd. versus IVRCL AMR Joint Venture Citation: 2022 LiveLaw (SC) 657The Supreme Court observed that an arbitration agreement should disclose a determination and obligation on behalf of the parties to refer the disputes to arbitration. The Bench comprising Justices DY Chandrachud and AS Bopanna noted that mere use of the word "arbitration" or "arbitrator" in a clause will not make it an arbitration agreement, if it requires or contemplates a further or fresh consent of the parties for reference to arbitration.There Cannot Be Two Arbitration Proceedings With Respect To Same Contract/ Transaction: Supreme CourtCase Title: M/s Tantia Constructions Limited versus...

All India Annual Digest Of Arbitration Cases-2022- Supreme Court And High Courts

Parina Katyal

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