Arbitration
All Arbitration Proceedings Must Be Filed In Court With Jurisdiction Over The Arbitral Seat: Delhi High Court
The Delhi High Court bench of Justice C. Hari Shankar has held that once the arbitral seat is established, all proceedings, including the initial ones, must be filed only in the court that has jurisdiction over the arbitral seat. The bench held that no other Court is authorized to handle any matters related to the arbitration. Brief Facts: The matter pertained to an objection...
Party Ignores Section 21 Notice; Should Seek Court Intervention, Arbitrator Can't Unilaterally Summon Parties: Delhi High Court
The Delhi High Court bench of Justice C. Hari Shankar has held that if a party seeking arbitration faces a situation where the opposing party does not respond to a Section 21 notice or refuses to agree to arbitration, the only recourse is to approach the Court under Section 11(5) or Section 11(6) of the Arbitration and Conciliation Act, 1996, depending on the...
Mere Arbitration Clause In Invoices Insufficient, Express Or Implicit Acceptance Of Terms Of Invoices Necessary: Delhi High Court
The Delhi High Court bench of Justice C. Hari Shankar has held that simply including an arbitration clause in invoices does not constitute a valid arbitration agreement. The High Court held that since the applicant neither expressly nor implicitly accepted the terms of the invoices, it could not be deemed to be bound by any arbitration agreement. The bench held: “They...
Arbitration Clause In Original Lease Deed Incorporated Into Deed Of Assignment When Deeds Are Interconnected And Consistent: Calcutta High Court
The Calcutta High Court bench of Justice Ravi Krishan Kapur has held that if a deed of assignment is properly interpreted as being interconnected and related to the original lease deed containing an arbitration clause, then the parties intended for the arbitration clause to be included in the deed of assignment. The bench held that interrelationship was not merely superficial but indicative of a deliberate and mutual intent between the parties to incorporate certain terms from the...
The Arbitral Tribunal May Implead A Non-Signatory To The Arbitral Proceedings: Delhi High Court
The Delhi High Court bench of Justice C. Harishankar, while deciding an appeal under Section 37(2)(b) has held in the affirmative whether the arbitral tribunal may implead a non-signatory to the arbitration agreement in the proceedings. Following the ratio in Cox and Kings Ltd v. Sap India Pvt Ltd (Cox and Kings II), it observed that whether a non-signatory is bound by...
Non-Compliance With Share Purchase Agreement; Arbitrability Of Dispute Must Be Decided By Arbitral Tribunal, Not By Court: Delhi High Court
The Delhi High Court bench of Justice C. Hari Shankar has held that argument claiming the dispute is non-arbitrable due to non-compliance with the Share Purchase Agreement cannot be addressed by the court under Section 11(6) of the Arbitration and Conciliation Act, 1996. The bench held that such aspects need to be addressed by the arbitral tribunal. Brief Facts: The...
Section 11 Can't Be Entertained Without A Notice Under Section 21 of Arbitration Act: Telangana High Court
The Telangana High Court Bench comprising Chief Justice Alok Aradhe has held that a valid notice under Section 21 of the Arbitration and Conciliation Act, 1996, is a mandatory requirement for invoking arbitration, and its absence renders an arbitration application under Section 11 of the Act non-maintainable. Brief Facts: The parties entered into a Franchise Agreement on...
Arbitrator Can't Assume Arbitral Seat Without Clear Agreement From Parties: Delhi High Court
The Delhi High Court bench of Justice C. Hari Shankar has held that that parties in arbitration can agree to an arbitral seat at a neutral location, different from where the contract was executed, the work was carried out, or the arbitration proceedings were conducted. However, such a decision must first reflect mutual agreement and, secondly, must be documented, either...
Arbitration | Absence Of Monetary Claim In Section 21 Notice Doesn't Negate Existence Of Dispute: Delhi High Court
The Delhi High Court bench of Justice C. Hari Shankar has held that due to the broad interpretation of the term "dispute," the court cannot definitively conclude that no dispute exists between the parties, even in the absence of a monetary claim by the Petitioner against the Respondent in the notice issued under Section 21 of the Arbitration and Conciliation Act, 1996. Section...
The Benefit Of Section 14 Of The Limitation Act Can Be Invoked For Exclusion Of Time In A Proceeding Under Section 34 Of The Arbitration And Conciliation Act: Calcutta High Court
The Calcutta High Court bench of Justice Sabyasachi Bhattacharyya has held that under Section 14 of the Arbitration and Conciliation Act, 1996, the time spent in a writ petition on the same cause of action can be excluded from the limitation period for filing an application under Section 34 of the Arbitration and Conciliation Act, 1996. Brief Facts: Baid Power Services Private...
Twelve-Month Period For Arbitral Award Begins From Completion Of Pleadings, Not Statement Of Defense: Delhi High Court
The Delhi High Court bench of Justice C. Hari Shankar has held that Section 29A(1) of the Arbitration and Conciliation Act, 1996, when read with Section 29A(4), implies that the mandate of the arbitral tribunal terminates if the tribunal does not issue the award within twelve months of completing the pleadings under Section 23(4). The bench held that the twelve-month period is to...
Arbitration | Courts At Referral Stage Must Not Enter Into Contested Questions Involving Complex Facts : Supreme Court
The Supreme Court on Monday (Sep.9) reiterated that once there exists a valid arbitration agreement, than it would not be justifiable for the referral courts at the referral stage to venture into contested questions involving complex facts.Emphasizing upon the doctrine of competence-competence enshrined under Section 16 of the Arbitration & Conciliation Act, 1996 (Act), the Court said...