Arbitration
Court Under Section 34,37 Arbitration Act Cannot Modify An Award ; It Can Only Remand : Supreme Court
The Supreme Court observed that, under Section 34 or 37 of Arbitration and Conciliation Act, a Court cannot modify the award passed by the Arbitrator.The option would be to set aside the award and remand the matter, the bench comprising Justices Indira Banerjee and AS Bopanna said.The court was considering the appeals filed by National Highways Authority of India ('NHAI') assailing the...
Counter-Claim Cannot Be Rejected Merely Because The Claims Thereunder Were Not Notified At The Pre-Arbitral Stage: Supreme Court
The Supreme Court has held that the counter-claim of a party cannot be dismissed merely because the claims were not notified before invoking the arbitration. The Division Bench of Justice M.R. Shah and Justice Sanjiv Khanna held that there is a difference between the word "Claim" and "Dispute" where the former may be a one-sided thing while the latter by its definition has two sides....
The Arbitration Clause Contained In A Manual Issued By The Government As A Generic Guideline Is Not Binding: Andhra Pradesh High Court
The Andhra Pradesh High Court Bench of Chief Justice Prashant Kumar Mishra has held that arbitration clause contained in a government manual as generic guidelines cannot be invoked by the parties. The Court also observed that there cannot be an arbitration clause in a sub-contract or in a separate document when there is no binding agreement between the parties in the first...
Subrogation Deed Does Not Terminate The Right Of The Assured To Initiate Arbitration Against The Wrongdoer: Delhi High Court
The Delhi High Court has held that arbitration can be invoked by the insured even after entering into a subrogation-cum-assignment agreement with an insurance company. The Single Bench of Justice Sanjeev Sachdeva held that subrogation does not put an end to the right of the assured to initiate legal proceedings against the wrongdoer, it merely allows the insurer to step into the shoes...
Dispute Referred To Arbitration Under MSME Act; Court Can Extend The Mandate Of Arbitrator Under Section 29A Of A&C Act: Gujarat High Court
The Gujarat High Court has ruled that even in cases where the dispute has been referred to arbitration under the Micro, Small and Medium Enterprises Development Act, 2006 (MSME Act), the Court is empowered under Section 29A of the Arbitration and Conciliation Act, 1996 (A&C Act) to extend the mandate of the Arbitral Tribunal. The Single Bench of Chief Justice Aravind Kumar held...
Section 8 Application Should Be Filed Within Time Available For Filing Written Statement: Delhi High Court
The Delhi High Court has ruled that if a party fails to file an application under Section 8(1) of the Arbitration and Conciliation Act, 1996 (A&C Act) for referring the parties to arbitration within the time available for filing the first statement on the substance of the dispute, which would include a written statement in the context of a suit, the party would forfeit its right...
Arbitration Cases Weekly Round-Up: 3 July To 9 July, 2022
Bombay High Court: Invocation Of Arbitration Has To Be In Clear Terms; Merely Stating Claims Would Not Suffice: Bombay High Court Case Title: M/s. D.P. Construction versus M/s. Vishvaraj Environment Pvt. Ltd. The Bombay High Court has ruled that invocation of arbitration has to be in clear terms, as specified in Section 21 of the Arbitration and Conciliation Act, 1996 (A&C...
"Interim Award Is A Stopover En-Route To The Destination To Final Adjudication Of The Dispute": Calcutta High Court Explains
Recently, the Calcutta High Court has discussed the concept of interim award under the Arbitration Act. The court was hearing a plea by Lindsay International seeking to set aside an order dated 24th August, 2019 by which the petitioner's pleaded that it was an interim order in terms of the Act. Single judge bench of Justice Moushumi Bhattacharya held that the impugned decision dated...
Section 8 Of A&C Act Can't Be Invoked Based On A Non-Binding Arbitration Agreement: Karnataka High Court
The Karnataka High Court has ruled that since the agreement between the parties provided for a 'non-binding' arbitration, there was absolutely no intention of the parties to enter into an arbitration agreement and that the said agreement could not be termed as an arbitration agreement. The Single Bench of Justice Sachin Shankar Magadum held that since under the relevant clause in...
Invocation Of Arbitration Has To Be In Clear Terms; Merely Stating Claims Would Not Suffice: Bombay High Court
The Bombay High Court has ruled that invocation of arbitration has to be in clear terms, as specified in Section 21 of the Arbitration and Conciliation Act, 1996 (A&C Act), and that a mere reference to the claims and disputes sought to be raised by a party, and the existence of an arbitration clause, would not itself mean that arbitration has been invoked by such a party. The...
If The Issue Of Limitation Calls For An Enquiry, The Court Should Yield To The Authority Of The Arbitral Tribunal: Meghalaya High Court
The Meghalaya High Court has ruled that in a case where the issue of whether the claim raised by a party is barred by limitation or not calls for an inquiry, the Chief Justice or his designate should allow the objection to be decided by the arbitral tribunal in accordance with law. The Single Bench of Chief Justice Sanjib Banerjee held that though in an open and shut case where it...
Objection Regarding 'Excepted Matter' Would Be An After-Thought If It Was Not Raised Before The Arbitrator: Delhi High Court
The High Court of Delhi has held that the objection regarding the excepted matter would be an after-thought if the same was not raised before the arbitral tribunal. The Division Bench of Justice Mukta Gupta and Justice Neena Bansal Krishna relied on the judgment of the Supreme Court in J.G. Engineers v. UOI (2011) 5 SCC 758 to hold that only the question of determination of...