Power Of General Manager Of Employer To Confirm Nomination Of Arbitrator By The Contractor Runs Contrary To Principles Of Impartiality And Independence: Bombay High Court

The High Court of Bombay has held that the power of General Manager of the employer to confirm nomination of arbitrator by the Contractor runs contrary to principles of impartiality and independence. It held that nomination by a party of its arbitrator cannot be subject to approval by the other party. The bench of Justice Bharati Dangre held that for an appointment of arbitrator from...

While Court's Jurisdiction Is Limited At The Time Of Making A Reference, It Is Not Expected To Mechanically Refer Dispute To Arbitration: Delhi High Court

The Delhi High Court single bench of Justice Dinesh Kumar Sharma has held that while the court's jurisdiction is limited at the time of making a reference, it is not expected to mechanically refer the dispute to arbitration. The Court also held that once a party has chosen to file a civil suit to get the disputes resolved, it cannot be permitted to invoke arbitration when the suit...

Delhi High Court Imposes 5 Lakhs Rupees Cost On A Party For Failure To Disclose An Unfavourable Order Under SARFAESI Act While Seeking Interim Relief Under Arbitration Act

The High Court of Delhi has imposed costs of Rs. 5 lakhs on a party that failed to disclose an unfavourable order under SARFAESI Act while seeking interim relief under Section 9 of the A&C Act. The bench of Justice Prathiba M. Singh held that pendency of proceedings under SARFASI Act is not a bar on initiation of proceedings under A&C Act, however, a party must disclose a...

Debt Acknowledged In Letters, Delhi High Court Grants Benefit Of Section 18 To Hold Invocation Of Arbitration Within Limitation

The High Court of Delhi has held that assurance given by a party to repay the debts in letter issued to the other party would amount to an acknowledgement of the debt within the meaning of Section 18 of the Limitation Act. The bench of Justic Prathiba M. Singh held that such an acknowledgement would give rise to a fresh cause of action and the period of limitation would run afresh...

Industrial Tribunals Bound To Give Proper And Cogent Reasons For Their Orders: Karnataka High Court

The Karnataka High Court has observed that Industrial Tribunals must give proper and cogent reasons for their orders. If the tribunals give reasons for an order, it will be an effective restraint on the abuse of power, as the order, if it discloses extraneous or irrelevant consideration, will be subject to judicial scrutiny and correction. A Single judge bench of Justice...

An Award Issued By Unilaterally Appointed Arbitrator Can Be Contested For Invalidity Of Appointment, Even By The Appointing Party: Delhi High Court

The High Court of Delhi has held that an award passed by a unilaterally appointed arbitrator can be challenged on ground of invalidity of such appointment and consequent lack of jurisdiction even by the party who made such an appointment. The bench of Justice Anup Jairam Bhambhani held that a defect of jurisdiction can be challenged at any stage since it goes to the power...

Appointment Of Arbitrators From A Narrow Panel Of 4 Arbitrators Is Violative Of Section 12(5) Of The A&C Act: Bombay High Court

The High Court of Bombay has held that appointment of arbitrator from a narrow panel of 4 arbitrators is violative of Section 12(5) of the A&C Act. It held that such practice of preparing narrow panels restricts free choice and give rise to suspicion that favourites are chosen. The bench of Justice Bharati Dangre held that independence and impartiality of arbitrators is a hallmark...

Cheques Encashed Pursuant To 'Full And Final Settlement' Without Any Protest, Rajasthan High Court Refuses Arbitration

The High Court of Rajasthan, Jaipur Bench, has held that an application seeking the appointment of an arbitrator would not be allowed if the parties had already entered into a full and final settlement, and the applicant had encashed the settlement amount without protest or objection. The Court held that in such cases, the dispute would be considered non-arbitrable. Chief Justice...

Power Under Section 9 Of A&C Are Wider Than Power Of Court Under Order 38 Rule 5 Of CPC: Calcutta High Court

The High Court of Calcutta has held that power of a Court exercising powers under Section 9 of the A&C Act are wider than the powers of a Court under Order XXXVIII Rule 5 of CPC. It held that unlike under CPC, the dissipation of assets is not a mandatory requirement for interim relief under Section 9 of the A&C Act. The bench of Justice Ravi Krishan Kapur a petitioner...

A Term-Sheet Is Not A Binding Agreement If It Required Execution Of A Definitive Agreement: Karnataka High Court

The High Court of Karnataka has held that a termsheet for buyout is only an offer and a contract if it was valid only for a limited period or till the execution of a definitive agreement. The Bench of Justices Anu Sivaraman and Anant Ramanath Hedge ruled that a termsheet would expire if the specified period for executing a definitive agreement passes without such an agreement being...

Can A Section 29A Application Be Filed In The Commercial Court Or Only In The High Court? Single Bench Of Bombay High Court Refers The Issue To Larger Bench

The High Court of Bombay (Goa Bench) has referred the issue of maintainability of a Section 29A application seeking extension of the arbitration before the Commercial Court to a larger bench in view of conflicting views by two co-ordinate benches of the High Court. The Bench of Justice Bharat P. Deshpande observed that the since Section 29A of the A&C Act not just involves...

Ease Of Doing Business In India Is A Matter Of 'Public Policy', Fruits Of Arbitral Award Must Be Protected To Promote Business: Calcutta High Court

The High Court of Calcutta has held that ease of doing business in india with indian entities is also a matter of 'Public Policy'. These observations were made by the High Court while hearing an application under Section 9 of the A&C Act at post award stage in arbitration with seat in United States (US). The Bench of Justice Ravi Krishan Kapur held that the fruits of the award must...