Arbitration
Section 65-B Of Indian Evidence Act Does Not Apply To Arbitral Proceedings: Delhi High Court
The High Court of Delhi has held that Section 65-B of the Indian Evidence Act, 1872 does not apply to arbitral proceedings. The Single Bench of Justice Vibhu Bakhru held that although the principles of the Evidence Act usually apply, sensu stricto, the specific provisions of the Act do not apply. The Court further held that an objection as to the non-compliance with...
Order Terminating Arbitral Proceedings Without Issuing Show Cause Notice Is Unsustainable And Perverse: Delhi HC
The Delhi High Court has ruled that abrupt issuance of orders by the Arbitral Tribunal terminating the arbitral proceedings under Section 25 (a) of the Arbitration and Conciliation Act, 1996 (A&C Act), without holding any hearing and without issuing any show cause notice, is unsustainable and suffers from perversity of approach. The Single Bench of Justice Prateek Jalan held that...
Arbitration Clause In Unstamped Charter Party Agreement Can Invoke Jurisdiction Under Section 9 Of A&C Act: Andhra Pradesh High Court
The Andhra Pradesh High Court has ruled that an arbitration clause contained in a substantive agreement is an independent and autonomous clause, and even if the substantive agreement is not duly stamped as per the Indian Stamp Act, 1899, the arbitration clause is admissible in evidence before the Court who can take into consideration the arbitration clause to decide an application for...
The Court Shall Refer The Parties To Arbitration When There Is A Duality Of Expert Opinion As To The Genuineness Of The Agreement: Bombay High Court
The Bombay High Court has held that when an allegation as to the fraud and forgery committed in the execution of the agreement is made and there is a duality of expert opinion on the genuineness of the agreement, the court shall refer the matter to the arbitrator. The Single Bench of Justice N.J. Jamadar has held that when the underlying document in which the arbitration agreement...
Claim For Recovery Of Security Deposit Or Damages Under License Agreement Is Arbitrable & Not Barred By Section 41 Of The Small Cause Courts Act: Bombay High Court
The Bombay High Court has reiterated that where the parties to a Leave and License Agreement are governed by an Arbitration Agreement, determination of the dispute relating to recovery of the security deposit under the said License Agreement through arbitration is legally permissible. The Single Bench of held that the expression "charges" as provided under Section 41 of the...
Order Passed By Court Under Section 36 Of A&C Act Is An Interim Order, Can Be Modified On Grounds Of Financial Hardship: Calcutta High Court
The Calcutta High Court has ruled that financial hardship and financial indebtedness are sufficient grounds for modifying an order passed under Section 36 of the Arbitration and Conciliation Act, 1996 (A&C Act) to direct the award debtor to deposit the awarded amount by way of cash security. The Single Bench of Justice Ravi Krishan Kapur held that the security directed to be...
Can Third Parties To An Arbitration Agreement Be Impleaded As Parties In Proceedings U/S 9 Arbitration Act?: Gujarat High Court Answers
"In the proceedings of section 11, a person who is not a party to the agreement, has no association in eye of law. On the same footing, a third party cannot be a party in the proceedings under section 9 of the Act for interim measures wherein by very nature of the proceedings, third party cannot be said to have a legal participatory right", the Gujarat High Court has recently observed....
Arbitration Cases Weekly Round-Up: 1st May to 7th May 2022
Supreme Court "Group Of Companies" Doctrine Needs Relook, Says Supreme Court; Refers Issues To Larger Bench Case Title: Cox and Kings Limited versus SAP India Private Limited and Anr. Citation: 2022 LiveLaw (SC) 455 The Supreme Court has referred various aspects regarding the application of the doctrine of 'Group of Companies', which is often utilised to bind non-signatories to...
Interim Relief Under Section 9 Of The A&C Act Cannot Be Granted Against A Third-Party Unless Claiming Under A Party To The Arbitration Agreement: Gujarat High Court
The High Court of Gujarat has held that a third party cannot be impleaded as a party to an application for interim reliefs under Section 9 of the A&C Actunless it is a party who is claiming under a party to the arbitration agreement. The Division Bench of Justice N.V. Anjaria and Justice Samir J.Dave has held that the remedy under the Arbitration Act is between the parties...
Arbitrator Terminating The Arbitral Proceedings Under Section 25(A) Of The A&C Act, Challenge Maintainable Under Article 227 Of The Constitution Of India: Delhi High Court
The Delhi High Court has ruled that since no alternate remedy is available to the claimant to challenge the order of the arbitrator terminating the arbitral proceedings under Section 25(a) of the Arbitration and Conciliation Act, 1996 (A&C Act), hence, a petition under Article 227 of the Constitution of India against the said order of the arbitrator is ex...
The Weak Financial Condition Of A Party Cannot Be The Sole Ground To Deposit Security Or Bank Guarantee: Delhi High Court
The High Court of Delhi has held that the weak financial condition of a party cannot be the sole ground to direct the party to deposit a security or bank guarantee to secure the amount involved in the arbitration. The Single Bench of Justice Anup Jairam Bhambhani has held merely because a party is in financial distress, it cannot be the sole ground to direct it to deposit the...
If The Contract Is Extended By The Employer, It Cannot Be Allowed To Reduce The Period Of The Extension Retrospectively: Delhi High Court
The High Court of Delhi has held that when the employer has granted the contractor an extension of time for a specified period, it cannot turn around to contend that the extension was only provisional and it is allowed to reassess or reduce the number of days by which the execution of the contract was executed. The Single Bench of Justice Sanjiv Sachdeva has held that once the...