Unilateral Arbitrator Appointment Clauses In Public-Private Contracts Invalid; Can't Compel Selection Of Arbitrators From PSU's Panels : Supreme Court

The Supreme Court on Friday (November 8) ruled against clauses allowing Public Sector Undertakings to unilaterally appoint arbitrators to decide disputes with private contractors. The Constitution Bench held that while PSUs can maintain a panel of potential arbitrators, they cannot compel the other party to select its arbitrator from the panel.The Constitution Bench comprising Chief Justice...

Construction Of Contract's Terms Is Task Of Arbitrator, Cannot Be Interfered With U/S 34 Unless Construction Is Unreasonable: Madras HC

The Madras High Court bench of Justices M.Sundar And K.Govindarajan Thilakavadi affirmed that the construction of the terms of a contract is primarily for an Arbitrator to decide unless the Arbitrator construes the contract in such a way that it could be said to be something that no fair-minded or reasonable person could do then only interference under section 34 of the Arbitration...

Arbitral Tribunal May Impose Costs On Party Abusing Referral Court's Limited Jurisdiction To Compel Another's Participation In Arbitration : Supreme Court

The Supreme Court held that in the interest of justice, the Arbitral Tribunal may impose costs on the Party who abused the process of law constraining another party to participate in the Arbitral Proceedings by taking advantage of minimal judicial interference at the referral stage. “In order to balance such a limited scope of judicial interference with the interests of the parties who...

Award Must Not Be Set Aside On Ground Of Mere Erroneous Application Of Law Unless Patent Illegality Is Established U/S 34: Madras HC

The Madras High Court bench of Justices M.Sundar And K.Govindarajan Thilakavadi affirmed that the scope of interference under Section 34 of the Arbitration Act is limited and within the contours of the ground specified under Section 34 of the Act. To put it otherwise, the award is not required to be set aside on the ground of mere erroneous application of law or by reappreciation...

Objection To Tribunal's Jurisdiction U/S 16 Of Arbitration Act Must Be Raised Before Or At Time Of Statement Of Defence: Himachal Pradesh HC

The Himachal Pradesh High Court bench of Justice Jyotsna Rewal Dua affirmed that a party is bound by virtue of Section 16(2) of the Arbitration Act to raise any objection it may have to the jurisdiction of the Tribunal before or at the time of submission of its statement of defence, and at any time thereafter it is expressly prohibited. Brief Facts Objections preferred by...

S. 29A Of Arbitration Act Not Applicable To Arbitration Proceedings Which Commenced Before 2015 Amendment: Himachal Pradesh HC

The Himachal Pradesh High Court bench of Justice Jyotsna Rewal Dua affirmed that provisions of Section 29A of the Act will not be applicable to the arbitration proceedings that had started before the Arbitration & Conciliation (Amendment) Act, 2015 came into force.Brief Facts The National Highway Authority of India (for short 'NHAI') feeling aggrieved against the dismissal of...

Arbitrator Nominated U/S 18(3) MSMED Act Erred In Deciding Merits After Finding Respondent Was Not MSME: Madras HC Upholds Setting Aside Of Award

The Madras High Coury bench of Justices R. Suresh Kumar and C. Saravanan has held that an Arbitrator ought not to decide the case on merits after coming to a conclusion that the respondent was not a Micro, Small, and Medium Enterprise (MSME) and therefore not entitled to invoke the machinery under the Micro, Small and Medium Enterprises Development (MSMED) Act, 2006. The court...

Challenge To Award U/S 34 Of Arbitration Act Without Award Itself Being Filed Would Not Be A Valid Filing: Delhi High Court

The Delhi High Court Bench of Justice Subramonium Prasad, held that a petition under Section 34 of the Arbitration & Conciliation Act is for challenging the Award. It cannot be said that a challenge to the Award without the award itself being filed would be a valid filing. Without the Award, the challenge would become meaningless because unless the Award is perused by the Court,...

Requirement Of Serving Notice On Other Party For Appointment Of Arbitrator Is Dispensed With In Statutory Arbitration: Gujarat High Court

The Gujarat High Court Bench of Chief Justice Sunita Agarwal and Justice Pranav Trivedi held that the arbitration proceedings under consideration is not a commercial arbitration, but a statutory arbitration. The Arbitrator is appointed pursuant to the provisions of Section 84(5) of the Multi State Co-operative Societies Act. The appointment of the Arbitrator is made by the State...

Award In Which Serious Allegations Of Fraud Are Not Decided Must Be Set Aside On Grounds Of Patent Illegality: Gujarat High Court

The Gujarat High Court Bench of Chief Justice SUNITA AGARWAL and Justice PRANAV TRIVEDI affirmed that if serious allegations of fraud are raised that the arbitration agreement was entered into by fraud and collusion and such allegations are not decided by the Arbitrator while passing an award, such an award is liable to set aside on the ground of patent illegality under section 34 of...

Arbitration Weekly Round-Up: 28th October 2024 To 3rd November, 2024

NOMINAL INDEX 1. Atul Pratap Singh v. Indian Oil Corporation Limited and 3 Others, 2024:AHC:167917-DB 2. State Of Uttar Pradesh and 2 others v. M/S Virat Construction, 2024:AHC:171241-DB 3. NARESH KUMAR BAJAJ v. BUNGE INDIA PVT. LTD., 2024 LiveLaw (Del) 1182 4. The State of H.P. & Anr. V. M/s Garg Sons Estate Promoters Pvt. Ltd, OMP(M) No. 74 of 2023 5....

Court U/S 11 Of Arbitration Act Only Checks For Existence Of Agreement, Jurisdictional Questions To Be Decided By Arbitrator: Telangana HC

The Telangana High Court Bench of Chief Justice Alok Aradhe affirmed that Sub-section (1) of Section 16 provides that the Arbitral Tribunal may rule on its own jurisdiction, “including any objections” with respect to the existence or validity of the arbitration agreement. Section 16 is an inclusive provision, which would comprehend all preliminary issues touching upon the...