Arbitration
Delhi, Mumbai And GIFT City ; India's Search For A Credible Institutional Arbitration Seat?
India's oft-stated ambition is to emerge as a global arbitration hub, competing with Singapore and Hong Kong in the Asian market. To that end, India's arbitration policy has clearly shifted from ad hoc to institutional arbitration.A High-Level Committee, chaired by Justice (Retd) B.N. Srikrishna, was constituted to review the institutionalisation of arbitration in India and to make it a...
Arbitration Clause Gets Incorporated In Later Contract When Earlier Agreement Is Imported “Body and Soul” : Supreme Court
The Supreme Court observed that when a subsequent contract incorporates, in its entirety, the terms and conditions of an earlier agreement containing an arbitration clause, such incorporation is sufficient to invoke arbitration, and the later agreement need not separately express a clear intention to refer disputes to arbitration or specifically mention the arbitration clause in the...
Arbitration Act | Jurisdictional Objection Rejected By Arbitrator Cannot Be Independently Challenged Under Sections 34 Or 37: Supreme Court
The Supreme Court has held that an arbitral tribunal's decision to dismiss the plea challenging its jurisdiction cannot be challenged independently under Sections 34 or 37 of the Arbitration and Conciliation Act. The matter can be challenged only after the conclusion of the proceedings, while appealing against the award. “…there is no option for the party aggrieved by the decision of...
Legal Representatives Can Challenge Arbitral Award Only Under S 34 Arbitration Act, Not Article 227: Supreme Court
The Supreme Court has held that the appropriate remedy for a legal representative aggrieved by an arbitral award is to file an application under Section 34 of the Arbitration and Conciliation Act, 1996, and not a petition under Article 227 of the Constitution or Section 115 of the Code of Civil Procedure."In the considered view of this Court, the appropriate relief for a legal representative...
Clause Saying 'Can Be Settled By Arbitration' Does Not Create Mandate To Arbitrate : Supreme Court
The Supreme Court on Friday (April 17) held that an arbitration clause employing the word “can” does not constitute a binding arbitration agreement. A bench of Justice Sanjay Karol and Justice N. Kotiswar Singh dismissed an appeal filed against the Bombay High Court's decision, which held that Clause 25 of the Bill of Lading containing the arbitration agreement lacked the...
Distinction Between 'Seat' & 'Venue' Of Arbitration : Supreme Court Summarises Principles
The Supreme Court has reiterated that merely conducting arbitral proceedings at a place different from the designated seat of arbitration does not confer jurisdiction on the courts of that location. A bench of Justices PS Narasimha and Alok Aradhe set aside the Jammu & Kashmir and Ladakh High Court's decision, which had refused to entertain the Appellant's Section 34 plea for challenging...
Law Does Not Favour The Indolent: Supreme Court Sets Aside Arbitration Initiated After 21-Year Delay
The Supreme Court recently quashed arbitration proceedings between the State of West Bengal and a contractor, holding that the claim was ex facie time barred as the notice invoking arbitration was issued after 21 years from completion of work.“Arbitration though is an alternate dispute resolution system, which has to be encouraged, it cannot deviate from the fundamental principle that...
General Reference To Tender Document Containing Arbitration Clause Will Not Amount To Its Incorporation In Contract : Supreme Court
The Supreme Court has reiterated that a general reference in a Letter of Intent to an arbitration clause contained in a tender document cannot form a valid arbitration clause to seek an appointment of an arbitrator.A Bench of Justice J.K. Maheshwari and Justice Atul S. Chandurkar set aside a Bombay High Court order that had appointed an arbitrator in a construction dispute. The High Court...
Understanding The Procedure Of Mediation Under Mediation Act, 2023
In India, access to timely justice has become a mere theoretical fantasy due to the massive backlog of cases and procedural complexities within the judicial system. The growing burden on the Indian courts has resulted in the shift to alternative dispute resolution mechanisms like arbitration, conciliation, negotiation and mediation. Both arbitration and conciliation have long been...
Order 23 Rule 1 CPC Applies To S.11 Arbitration Act; Fresh Arbitration Barred After Abandoning Earlier Claim : Supreme Court
The Supreme Court has observed that a party who abandons an earlier arbitration proceeding would be barred from initiating a subsequent arbitration proceeding on the same cause of action. The Court underscored that such conduct amounts to an abuse of the judicial process and is barred on grounds of public policy. “A litigant cannot be permitted to abuse the process of Court to file a...
Can Foreign Arbitral Award Be Challenged In India On Grounds Rejected By Seat Court? Supreme Court Explains 'Transnational Issue Estoppel'
The Supreme Court has held that enforcement of a foreign arbitral award cannot be blocked on “public policy” grounds under Section 48 of the Arbitration and Conciliation Act, 1996 when the issue has already been finally decided by the seat court, and Indian courts cannot re-examine the merits under the guise of enforcement, due to the applicability of the doctrine of 'transnational...