Arbitration Act | S.37 Court Cannot Recalculate Damages Awarded By S. 34 Court Without Finding Arbitrariness Or Perversity : Supreme Court

The Supreme Court recently held that a court exercising appellate jurisdiction under Section 37 of the Arbitration and Conciliation Act, 1996 cannot re-calculate or substitute its own assessment of compensation once a Section 34 court has fixed a reasonable award within the terms of the contract.A bench of Justice Pamidighantam Sri Narasimha and Justice Atul S Chandurkar restored a Delhi...

Party Who Accepted S.11 Order For Arbitrator Appointment Can't Later Question Validity Of Arbitration Clause Under Pre-2015 Regime: Supreme Court

The Supreme Court on Wednesday (February 4) reiterated that under the pre-2015 amendment regime, once a party consents to a court order appointing an arbitrator, they cannot subsequently challenge the existence or validity of the arbitration clause before the arbitral tribunal or in proceedings under Section 34. A bench comprising Justices J.B. Pardiwala and K.V. Viswanathan heard an...

Award Passed After Arbitrator's Mandate Expiry Not Void If Court Extends Time: Supreme Court

In a notable development, the Supreme Court on Tuesday (February 3) held that where an arbitral award is rendered beyond the statutory period prescribed under Section 29A, such an award, though rendered after the tribunal's mandate has technically terminated, can be given effect if an application is filed before the competent court under Section 29A seeking extension of the arbitral...

When Arbitration Agreement Is Alleged To Be Forged, Dispute Is Not Arbitrable : Supreme Court

The Supreme Court on Monday (February 2) observed that the parties cannot be compelled to arbitrate when the very existence of the contract containing the arbitration clause was alleged to be fake. “…in a case where plea is taken with regard to non-existence of an arbitration clause or agreement, the same would amount to serious allegation of fraud and would render the subject matter of...

Only Civil Court Of Original Jurisdiction Can Extend Arbitral Tribunal's Mandate, Not Referral Courts : Supreme Court

The Supreme Court on Thursday (January 29) held that applications for extending an arbitral tribunal's mandate under Section 29A (4) of the Arbitration & Conciliation Act, 1996 must be filed exclusively before the 'Court' as defined in Section 2(1)(e) i.e., the principal civil court of original jurisdiction, regardless of which authority appointed the arbitrators. A bench of Justices...

Arbitration | 'Substantial Financial Interest' No Ground To Implead Non-Signatory; Active Participation In Contract Essential: HP High Court

The Himachal Pradesh High Court has ruled that merely because a party has a substantial financial interest in the subject matter of the contract, that alone cannot be a ground for impleading it as a party in the arbitration proceedings between the parties before the learned Arbitrator.The HC thus upheld an arbitral tribunal's decision rejecting the impleadment application of a non-signatory...

Supreme Court Annual Digest 2025: Arbitration And Conciliation Act

Arbitration A non-signatory to an arbitration agreement cannot be permitted to remain present in arbitration proceedings, as it would breach confidentiality and exceed the Court's jurisdiction after appointing an arbitrator - Section 35 of the 1996 Act states that an award binds only parties to the arbitration and those claiming under them - 'Party' is defined by section 2(h) as...

Supreme Court Dismisses UCM Coal Company's Challenge To Rs.126 Cr Arbitral Award In Favor Of Adani Enterprises

The Supreme Court recently dismissed a challenge to the Allahabad High Court order which upheld an arbitral award of Rs.126 crores in favor of Adani Enterprises.A bench of Justices JK Maheshwari and Atul S Chandurkar passed the order in a petition filed by UCM Coal Company Ltd., a joint venture of Uttar Pradesh Rajya Vidyut Utpadan Nigam Ltd., Chhatisgarh Mineral Development Corporation...

Reference To Arbitration Requires Independent Application, Cannot Be Inferred From Plea To Reject Plaint: Calcutta High Court

The Calcutta High Court recently rejected a Master's summons application filed by M/s Samman Capital Limited, that sought stay of a commercial suit on the grounds of an existing arbitration clause.Master's summons under the Code of Civil Procedure (CPC) refers to a court order (summons) compelling a party to appear, often to provide documents or information relevant to an insolvency proceeding...

Auction Cancellation Must Be Based On Objective Criteria, Not Post-Facto Subjective Satisfaction: Rajasthan High Court

The Rajasthan High Court held that whether an auction bid was fair or competitive was not a post-facto subjective notion, rather an assessment founded on objective criteria, demonstrable from the auction proceedings themselves and recorded contemporaneously with clarity and specificity.While setting aside unilateral and unreasoned cancellation of auction post acceptance of deposit by the...

The Illusion Of Progress: Why India Is Not Ready To Be An Arbitration Hub

The desire of India to place itself near the global arbitration hubs has continued to falter under the pressure of inconsistency in policies, lack of efficiency in the administration and general unwillingness to adopt the rapid method of solving disputes. Although Indian arbitration system has been remodeled and promises and commitments are repeatedly given, the system has remained entrenched...

Arbitration | Arbitral Award Can't Be Interfered With Just Because Another Interpretation Of Contract Is Possible : Supreme Court

The Supreme Court reaffirmed that an arbitral award cannot be set aside under Section 34, nor can it be interfered with in an appeal under Section 37 of the Arbitration and Conciliation Act, merely because the arbitrator has not adopted an alternative or second possible interpretation of the substantive contract. A Bench comprising Justices P.S. Narasimha and Pankaj Mithal set aside the...