Best Of 2022- 40 Important Supreme Court Judgments On ARBITRATION With Parallel Citations

Update: 2022-12-24 11:59 GMT
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Court while considering application seeking appointment of arbitrator cannot go into question of novation of contract. Meenakshi Solar Power Pvt. Ltd. v. Abhyudaya Green Economic Zones Pvt. Ltd., 2022 LiveLaw (SC) 988Issue of arbitrability should be left to arbitrator unless on the face it is found that dispute is non- arbitrable. VGP Marine Kingdom Pvt. Ltd. v. Kay Ellen Arnold,...

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  1. Court while considering application seeking appointment of arbitrator cannot go into question of novation of contract. Meenakshi Solar Power Pvt. Ltd. v. Abhyudaya Green Economic Zones Pvt. Ltd., 2022 LiveLaw (SC) 988
  2. Issue of arbitrability should be left to arbitrator unless on the face it is found that dispute is non- arbitrable. VGP Marine Kingdom Pvt. Ltd. v. Kay Ellen Arnold, 2022 LiveLaw (SC) 914
  3. Petition to set aside arbitral award lies before a high court only when it possesses original civil jurisdiction. Yashpal Chopra v. Union of India, 2022 LiveLaw (SC) 900
  4. Designated Commercial Courts subordinate to rank of Principal Civil Judge in the district can hear appeals / application under Arbitration Act. Jaycee Housing Pvt. Ltd. v. Registrar (General), Orissa High Court, 2022 LiveLaw (SC) 860 : 2022 (15) SCALE 213
  5. Arbitral Tribunal must give reasons for fixing interest rate; Award holder not entitled to interest for delay caused by it. Executive Engineer (R and B) v. Gokul Chandra Kanungo, 2022 LiveLaw (SC) 824 : AIR 2022 SC 4857
  6. Arbitration - Court can undertake preliminary inquiry under section 11 to ascertain if dispute is arbitrable. Emaar India Ltd. v. Tarun Aggarwal Projects LLP, 2022 LiveLaw (SC) 823 : AIR 2022 SC 4678
  7. Disputes related to tax concessions are not arbitrable. Shree Enterprise Coal Sales Pvt. Ltd. v. Union of India, 2022 LiveLaw (SC) 774
  8. Court exercising power u/sec 9 Arbitration Act not strictly bound by CPC; Should not withhold interim relief on mere technicality. Essar House Pvt. Ltd. v. Arcellor Mittal Nippon Steel India Ltd., 2022 LiveLaw (SC) 765 : AIR 2022 SC 4294
  9. Arbitration clause has to be given effect even if it does not expressly state that decision of arbitrator is final & binding on parties. Babanrao Rajaram Pund v. Samarth Builders & Developers, 2022 LiveLaw (SC) 747 : AIR 2022 SC 4161 : (2022) 9 SCC 691
  10. Arbitrator has discretion to award post-award interest on a part of the 'sum'. Morgan Securities and Credits Pvt. Ltd. v. Videocon Industries Ltd., 2022 LiveLaw (SC) 728 : AIR 2022 SC 4091
  11. Arbitrators entitled to charge separate fee for claim & counter claim in arbitration proceedings. Oil and Natural Gas Corporation Ltd. v. Afcons Gunanusa JV, 2022 LiveLaw (SC) 723 : AIR 2022 SC 4413
  12. Supreme Court disapproves entertaining of writ petitions for executing arbitration awards against NHAI. National Highways Authority of India v. Sheetal Jaidev Vade, 2022 LiveLaw (SC) 705 : AIR 2022 SC 3980
  13. Can a person who is ineligible to be an arbitrator nominate another arbitrator? Supreme Court refers issue to larger bench. JSW Steel Limited v. South Western Railway, 2022 LiveLaw (SC) 693
  14. Mere use of words "arbitration" or "arbitrator" in a clause won't make it arbitration agreement. Mahanadi Coalfields Ltd. v. IVRCL AMR Joint Venture, 2022 LiveLaw (SC) 657
  15. There cannot be two arbitration proceedings with respect to same contract / transaction. Tantia Constructions v. Union of India, 2022 LiveLaw (SC) 624
  16. Court while deciding 'Section 11' application seeking appointment of arbitrator can consider whether dispute falls within 'excepted clause'. Indian Oil Corporation Ltd. v. NCC Ltd., 2022 LiveLaw (SC) 616
  17. Counter-Claim cannot be rejected merely because the claims thereunder were not notified at the pre-arbitral stage. National Highway Authority of India v. Transstroy (India) Ltd., 2022 LiveLaw (SC) 586 : 2022 (10) SCALE 429
  18. Court under Section 34, 37 Arbitration Act cannot modify an award; It can only remand. National Highways Authority of India v. P. Nagaraju @ Cheluvaiah, 2022 LiveLaw (SC) 584 : 2022 (9) SCALE 823
  19. Arbitration Act - Dispose Sec 11(5) & 11(6) Applications Pending For Over 1 Year Within 6 Months : Supreme Court To high Courts. Shree Vishnu Constructions v. Engineer in Chief Military Engineering Service Service, 2022 LiveLaw (SC) 523
  20. Appointment of a new arbitrator who holds proceedings at a different location would not change the jurisdictional 'seat' already fixed by the earlier arbitrator. BBR (India) Pvt. Ltd. v. S.P. Singla Constructions, 2022 LiveLaw (SC) 493 : AIR 2022 SC 2673
  21. "Group Of Companies" Doctrine Needs Relook, Says Supreme Court; Refers Issues To Larger Bench. Cox and Kings Ltd. v. SAP India, 2022 LiveLaw (SC) 455 : (2022) 8 SCC 1
  22. Application under Section 11(6) not maintainable for appointment of arbitrator in absence of a written agreement between parties. Swadesh Kumar Agarwal v. Dinesh Kumar Agarwal, 2022 LiveLaw (SC) 454 : AIR 2022 SC 2193 : (2022) 10 SCC 235
  23. Power of Arbitral Tribunal to award interest is discretionary & subject to agreement between parties. Delhi Airport Metro Express Pvt. Ltd. v. Delhi Metro Rail Corporation, 2022 LiveLaw (SC) 452 : AIR 2022 SC 2165 : (2022) 9 SCC 286
  24. "Interferes With Judicial Functions": Supreme Court Holds Kerala Law To Revoke Aribtral Awards Unconstitutional. Secretary of Govt. of Kerala Irrigation Department v. James Varghese, 2022 LiveLaw (SC) 447 : (2022) 9 SCC 593
  25. Group of Companies Doctrine can be applied to bind non signatory to an arbitration agreement. Oil and Natural Gas Corporation Ltd. v. Discovery Enterprises Pvt. Ltd; 2022 LiveLaw (SC) 416 : AIR 2022 SC 2080 : (2022) 8 SCC 42
  26. Arbitral Tribunal can grant post award interest on interest component included in the sum of the award. Indian Oil Corpn. Ltd v. U.B. Engineering Ltd; 2022 LiveLaw (SC) 409
  27. Arbitral Tribunal can't direct interim deposit of amount in dispute when liability to pay is seriously disputed. Evergreen LandMark Pvt. Ltd. v. John Tinson and Company Pvt. Ltd. 2022 LiveLaw (SC) 389 : AIR 2022 SC 1930 : (2022) 7 SCC 757
  28. Arbitral Award cannot be set aside merely on the ground of erroneous application of law or misappreciation of evidence. Haryana Urban Development Authority v. Mehta Construction Company, 2022 LiveLaw (SC) 348 : (2022) 5 SCC 432
  29. Applications for appointment of arbitrator should be decided and disposed at the earliest. Shree Vishnu Constructions v. Military Engineering Service, 2022 LiveLaw (SC) 345
  30. Application seeking appointment of arbitrator cannot be moved before a high court if no part of cause of action arose within its territorial jurisdiction. Ravi Ranjan Developers Pvt. Ltd. v. Aditya Kumar Chatterjee, 2022 LiveLaw (SC) 329 : 2022 (5) SCALE 372
  31. Arbitral Award patently illegal if the Arbitrator failed to act in terms of contract or ignored specific terms of contract. Indian Oil Corporation Ltd. v. Shree Ganesh Petroleum Rajgurunagar, 2022 LiveLaw (SC) 121 : (2022) 4 SCC 463
  32. Section 11 Arbitration Act - Court by default would refer to arbitration when contentions on non-arbitrability are plainly arguable. Mohammed Masroor Shaikh v. Bharat Bhushan Gupta, 2022 LiveLaw (SC) 120 : AIR 2022 SC 1226 : (2022) 4 SCC 156
  33. Arbitral Award can't be challenged on the grounds that the arbitrator has failed to appreciate facts. Atlanta Ltd. v. Union of India, 2022 LiveLaw (SC) 63 : (2022) 3 SCC 739
  34. 'Reference to wrong provision, as long as power exists would not matter': Supreme Court on maintainability of appeal under Section 34 instead of Section 37 Arbitration Act. Premier Sea Foods v. Caravel Shipping Services, 2022 LiveLaw (SC) 54
  35. The High Court cannot enter into the merits of the claim in an appeal under Section 37 Arbitration Act. Haryana Tourism Ltd. v. Kandhari Beverages Ltd., 2022 LiveLaw (SC) 38 : (2022) 3 SCC 237
  36. Arbitrator can grant post-award interest on the interest amount awarded. UHL Power Company v. State of H.P., 2022 LiveLaw (SC) 18 : (2022) 4 SCC 116
  37. Arbitration - Party without notice of section 11(6) petition filed by other party free to appoint arbitrator. Durga Welding Works v. Chief Engineer, 2022 LiveLaw (SC) 9 : (2022) 3 SCC 99
  38. Arbitral Tribunal constituted before the 2015 amendment cannot operate if it violates neutrality mandate under Section 12(5). Ellora Paper Mills Ltd. v. State of Madhya Pradesh, 2022 LiveLaw (SC) 8 : AIR 2022 SC 280 : (2022) 3 SCC 1
  39. Section 5 Limitation Act Cannot Be Invoked To Condone Delay Beyond Period Prescribed U/Sec 34(3) Arbitration Act. Mahindra & Mahindra v. Maheshbhai Tinabhai, 2022 LiveLaw (SC) 5 : (2022) 4 SCC 162
  40. Not always obligatory to remit matter to the Arbitration Tribunal merely because a party filed an application U/s 34(4) Arbitration Act. I-Pay Clearing Services Pvt. Ltd. v. ICICI Bank Ltd., 2022 LiveLaw (SC) 2 : AIR 2022 SC 301 : (2022) 3 SCC 121


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