Non-Response Can't Be Presumed As Consent For Appointment Of Arbitrator: Delhi High Court

The Delhi High Court bench of J. C.Hari Shankar has held that consent requires consensus ad idem and there must be positive consent present from the petitioner side with respect to the appointment of an arbitrator. If such consent is absent, the appointment becomes unilateral and ex facie illegal. The court has held that there was no consent by the petitioner with respect to...

How To Determine Conversion Of Arbitral Award In Foreign Currency To Indian Currency? Supreme Court Explains

In a significant judgment relating to International Commercial Arbitration, the Supreme Court has decided the two important questions on the enforcement of an arbitral award expressed in foreign currency to Indian Currency.The two questions that appeared for the Court's consideration were:Firstly, what is the correct and appropriate date to determine the foreign exchange rate for converting...

Arbitration | Impermissible For Arbitral Tribunal Or Courts To Grant Interest Upon Interest Under 1940 Act : Supreme Court

The Supreme Court on Wednesday (Aug. 7) held that an Arbitral Tribunal is not empowered to grant interest upon interest while passing an arbitral award as the Arbitration Act, 1940 does not specifically provide for the grant of interest on interest. “In the light of the above legal provisions and the case law on the subject, it is evident that ordinarily courts are not supposed to...

Arbitral Tribunal First To Adjudge Non-Arbitrability Of Dispute And Ground Of Res-Judicata, Courts Can Have Second Look After Award: Rajasthan HC

The bench of Justice Nupur Bhati at the Rajasthan High Court accepted an application filed under Section 11(6) of the Arbitration and Conciliation Act, 1996 seeking appointment of an arbitrator and observed that the issue of non-arbitrability of a dispute under an arbitration agreement falls under the domain of the arbitral tribunal in the first instance and the courts have the power to...

Writ Petition Can't Be Entertained Against Every Interlocutory Order Issued By Arbitral Tribunal: Delhi High Court

The Delhi High Court bench of Justice Sanjeev Narula has held that the scope of judicial interference under Article 226 is limited when challenging an Arbitral Tribunal's order concerning the conduct of arbitration proceedings. The bench held that a writ petition cannot be entertained against every interlocutory order related to case management. Such orders fall within...

Principles Of Equity And Fairness Not Applicable To Commercial Matters, Relief Is Governed By Contract: Delhi High Court

The Delhi High Court bench of Justice C Hari Shankar has held that commerce is devoid of equity. The bench held that commercial transactions are driven by a harsh reality, and the principle of universal brotherhood does not extend to commercial dealings. In these transactions, there is no obligation on the arbitrator for fairness, kindness, or equity, and no court can mandate...

Arbitral Tribunal's Decision To Award Damages For Loss Of Profit Is Patently Illegal If It Contradicts Contract: Delhi High Court

The Delhi High Court division bench of Justice Vibhu Bakhru and Justice Tara Vitasta Ganju has held that an Arbitral Tribunal's decision to award damages for loss of profit is vitiated by patent illegality if it contradicts the express terms of the agreement between the parties. The bench held that: “It is essential to maintain the bargain entered into between the parties....

Settlement Arising From Contract Containing Arbitration Clause Must Be Resolved Through Arbitration: Karnataka High Court

The Karnataka High Court division bench of Justice Anu Sivaraman and Justice Anant Ramanath Hegde has held that the right to enforce the settlement has to be through arbitration as the alleged settlement is in respect of a transaction arising from the contract which contained an arbitration clause. Brief Facts: M/s S P Sai Technologies (Respondent) filed a suit for recovery of...

Formal Contract Signature Not Required To Enforce Arbitration Clause If Parties Are Ad Idem: Madras High Court

The Madras High Court division bench of Justice Krishnan Ramasamy has held that if it is proved that if it is established that the parties are ad idem, a formal contract signature by the other party is not necessary to enforce the arbitration agreement. Further, the bench held that by acting upon the Purchase Orders, the party implicitly accepted the terms, including the...

Doctrine Of Separability; Arbitration Agreement Survives Termination Of Main Contract: Bombay High Court

The Bombay High Court bench of Justice R. G. Avachat and Justice Neeraj P. Dhote has held that an arbitration agreement survives the termination of the main contract facilitating the resolution of disputes arising under or in connection with the contract. Therefore, the bench dismissed a writ petition noting that the dispute was arbitral and fell within the ambit of the...

Non-Signatories Bound By Arbitration Clause When Purchasing Property From Agreement Parties: Karnataka High Court

The Karnataka High Court bench of Justice Anu Sivaraman and Justice Anant Ramanath Hegde has held that a person who is not a party to the arbitration agreement but buys property from someone who is a party to the agreement is still bound by the arbitration clause that applies to their vendors. The High Court noted that the Constitution Bench of the Supreme Court decision in Cox and...

Legal Heirs Of Deceased Party To Arbitration Agreement Comes Under "Legal Representatives" Under Section 2(1)(g) Of Arbitration Act: Telangana High Court

The Telangana High Court bench of Justice P.Sam Koshy and Justice Sambasivarao Naidu has held the legal heirs of a deceased person who was a party to an arbitration agreement fall under the definition of "legal representative" as specified in Section 2(1)(g) of the Arbitration and Conciliation Act, 1996. The bench held that it encompasses persons who manage or claim to inherit...