Arbitration
Arbitration Weekly Round-Up: 27th November to 3rd December
Bombay High Court N.N. Global Judgment Does Not Affect The Power Of Court To Grant Interim Measures Under Section 9 Of The A&C Act Despite Inadequacy/Insufficiency Of Stamp Duty: Bombay High Court Case Title: L&T Finance Limited v. Diamond Projects Limited, Commercial Arbitration Petition No. 1430 of 2019 The High Court of Bombay has held that the judgment of...
Arbitral Tribunal Can’t Allow Application U/S 27 Of A&C Act Without Forming A Prima Facie View On The Relevancy Or Admissibility Of The Evidence: Delhi High Court
In a recent ruling, the Delhi High Court emphasized that when an arbitral tribunal is presented with a party's application under Section 27 of the Arbitration and Conciliation Act (A&C Act), seeking permission to seek the court's assistance in obtaining evidence, it is imperative for the tribunal to form a prima facie view on the relevance and admissibility of the...
Court Exercising Powers Under Section 27 Of The A&C Act Cannot Examine The Admissibility Or Relevancy Of The Evidence: Delhi High Court
The High Court of Delhi has held that the Court exercising powers under Section 27 of the A&C Act cannot form an opinion on the relevancy or the admissibility of the evidence for which the assistance of the Court is sought. The bench of Justice Sachin Datta held that the role of Court under Section 27 of the A&C Act is not adjudicatory, therefore, the Court would not examine...
Delhi High Court Extends The Arbitration Period Despite Significant Delays, Considering The Advanced Stage Of Proceedings.
The High Court of Delhi has extended the time period for the completion of arbitral proceedings, despite observing that there was inordinate delay in the completion of arbitral proceedings, on the ground that the proceedings, though protracted, has reached advance stage. The bench of Sachin Datta while dealing with an application under Section 29A(4) of the A&C Act,...
Entire Arbitration Not Invalid By Illegality Of Appointment Procedure: Delhi High Court Reiterates
The High Court of Delhi has held that an arbitration clause does not become illegal by mere illegality of the appointment procedure provided therein. The bench of Justice Sachin Datta held that the procedure for appointment of an arbitrator is clearly distinct and separable from the agreement to refer disputes to arbitration, even if these are contained in the...
Court Under Section 11 Of The A&C Act Can Sever Offending Part Of Arbitration Clause: Delhi High Court
The High Court of Delhi has held that the Court exercising powers under Section 11 of the A&C Act can sever an illegal/offending portion of the arbitration clause. The bench of Justice Sachin Datta held that an arbitration clause does not become illegal by mere illegality of the appointment procedure provided therein, therefore, the Court u/s 11 can sever the illegal portion of...
Reduction Of Rate Of Interest Awarded By The Arbitral Tribunal Amounts To Modification Of The Award: Delhi High Court
The High Court of Delhi has held that the Court exercising powers under Section 34 of the A&C Act cannot reduce the rate of the interest awarded by the arbitral tribunal as the same amounts to modification of the arbitral award. The bench of Justices Yashwant Varma and Ravinder Dudeja held that the modulation of the terms of the award by reducing the rate of interest awarded by...
Court U/S 37 Of The A&C Act Can’t Undertake An Independent Assessment Of Arbitral Award,: Bombay High Court
The High Court of Bombay has held that under Section 37 of the A&C Act, the challenge must be related to the impugned order passed under Section 34 of the Act and not merely to the arbitral award. It held that it is incumbent upon a party to point out errors in the order under Section 34 to make out a case in appeal under Section 37. The bench of Chief Justice Devendra...
Telangana High Court Upholds An Arbitral Award Directing Pulling Down Of A Building Incapable Of Human Habitation
The High Court of Telangana has upheld an arbitral award passed by a sole arbitrator wherein the arbitrator directed the pulling down/demolition of the subject building after observing that it was no longer capable to have human habitation. The bench of Chief Justice Alok Aradhe and Justice N. Tukaramji held that the tribunal rightly directed the pulling down of the subject property...
Panel Of Four Arbitrators, All Ex-Employees Of One Party, Not Broad-Based: Delhi High Court
The High Court of Delhi has held that the composition of the panel, limited to a mere four arbitrators, all of whom are former employees of a single party, does not reflect a sufficiently broad-based representation. Justice Jyoti Singh's bench emphasized that when appointing an arbitral tribunal from a party-maintained panel, it must be not only numerically robust but also diverse....
Right Of A Party To Nominate 2/3rd Of The Arbitral Tribunal Violates Counter-Balancing: Delhi High Court Reiterates
The High Court of Delhi has held that an arbitration clause that confers on a party the right to nominate 2/3rd of arbitral tribunal violates the principles of 'counter-balancing' as sought to be achieved by the Supreme Court in the landmark judgment in Perkins. The bench of Justice Jyoti Singh held that a party cannot have the right to nominate the majority of the arbitral tribunal...
Principle Of 'Forum Shopping' Does Not Apply To Proceedings For The Enforcement Of The Arbitration Awards: Delhi High Court
The High Court of Delhi has held that the policy concerns which militate against forum shopping in the context of substantive civil proceedings do not apply to enforcement proceedings, where the award holder is entitled to proceed against the assets of the award debtor in any and every jurisdiction in which such assets are located. The bench of Justice Prateek Jalan held that the...