Arbitration
A Written-Off Debt Is An Asset, Award Holder Can Enforce At The Location Of Asset: Delhi High Court
The Delhi High Court ruled that a written-off debt constitutes a recoverable asset, affirming the award holder's right to enforce the award at the location of the debt/asset. The bench of Justice Prateek Jalan held that a debt written off by the award debtor remains a recoverable asset. This pivotal decision solidifies the award holder's entitlement to initiate enforcement proceedings...
Once Agreed To Constitute An Arbitral Tribunal, A Party Cannot Turn Around And Insist On Fulfilment Of Pre-Arbitral Steps: Delhi High Court
The High Court of Delhi has held that once a party has agreed to constitute an arbitral tribunal, it cannot turn around and resist appointment of arbitrator on the ground of non-fulfilment of pre-arbitral steps. The bench of Justice Sachin Datta also held that issue of 'excepted matters' requires in-depth examination of the factual matrix, therefore, the same can only be done by...
Arbitration | Decree Holder Cannot Seek An Unquantified Claim In Execution Proceedings: Delhi High Court
While dismissing a second execution petition filed in respect of “unsatisfied” claims in an Arbitral Award, the Delhi High Court has held that a court cannot go behind the Award in execution proceedings and enable decree holder to fill gaps in producing evidence. Considering that the cost statement in question was made subject to certification by the Arbitral Tribunal but no proof...
Arbitral Tribunal Has No Jurisdiction To Create Security Over A Property Which Has A Third Party Charge: Delhi High Court
The High Court of Delhi has held that the arbitral tribunal has no jurisdiction to create security on a property over which a charge is created in favour of a third party. The bench of Justice Yogesh Khanna modified an interim order of the arbitral tribunal passed under Section 17 of the A&C Act to the extent to which the order created security on the property on which a charge...
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
The High Court of Bombay has held that the judgment of the Constitution Bench in N.N. Global does not affect the power of Court to grant interim measures under Section 9 of the A&C Act despite the non-payment or insufficiency of payment of stamp duty on the arbitration agreement or the main agreement containing the arbitration clause. The bench of Justice Bharati Dangre held...
S.37 Court Must Be Circumspect When Interfering With Arbitrator’s Interim Orders: Calcutta HC Preserves Deceased LLP Partner’s Share
The Calcutta High Court has recently held that a Court exercising powers under Section 37 of the Arbitration & Conciliation Act, 1996 (“1996 Act”) must be circumspect in its interference with interim orders of an arbitrator.In refusing to interfere with the order passed under Section 17 of the 1996 Act, for preserving the share of a deceased LLP partner, amounting to approx. Rs 6...
Arbitration Weekly Round-Up: 20th November to 26th November
Calcutta High Court Exclusive Jurisdiction Clause Takes Precedence Over Generic Jurisdiction Clause In Another Agreement Between The Parties: Calcutta High Court Case Title: R.P. Infosystems Pvt Ltd v. Redington (India) Limited, AP 626 of 2018 The High Court of Calcutta has held that an exclusive jurisdiction clause within the arbitration agreement would override a...
Court Cant Grant Unconditional Stay Of Award Under Section 36(3) Unless A Prima Facie Case Of Fraud: Delhi High Court
The High Court of Delhi has held that the Court cannot grant unconditional stay on the award under Section 36(3) unless a prima facie case is made out that making of the award is marred by fraud. The bench of Justice Manoj Kumar Ohri refused to grant a stay in favour of a foreign entity with no roots in India. The Court observed that it has no assets that can be offered as security...
Loss Of Goodwill Is Difficult To Prove, Cannot Be Proved With Mathematical Precision: Delhi High Court
The High Court of Delhi has held that it would be difficult for any party claiming loss of goodwill to prove or establish the same with any mathematical precision. The bench of Justices Vibhu Bakhru and Justice Amit Mahajan upheld an arbitral award wherein the arbitrator allowed a party to retain certain amount as penalty, being the genuine pre-estimate of the loss of goodwill without...
Telangana High Court Sets Aside An Order Of The District Court Under Section 34 Of The A&C Act For Modifying An Arbitral Award
The High Court of Telangana has set aside an order of the District Court passed under Section 34 of the A&C Act by which the Ld. Additional Chief Judge, City Civil Court, Hyderabad had modified an arbitral award. The bench of Justice M.G. Priyadarsini held that the Ld. Court committed an irregularity in modifying the amount of compensation awarded by the arbitrator. It held that...
MSMED Act Does Not Prevent Interim Relief Under Section 9 Of The A&C Act, Before Approaching Facilitation Council : Calcutta High Court
The Calcutta High Court has held that MSMED Act does not prevent a party from seeking an interim relief under Section 9 of the A&C Act anytime before approaching the Facilitation Council. The bench of Justice Sabyasachi Bhattacharyya held that the reference of dispute to facilitation council cannot be refused merely on the ground that before making such a reference under Section...
A Party Cannot Contest An Arbitral Award For Exceeding The Reference Scope If It Failed To Object When The Alleged Breach Initially Occurred: Delhi High Court
The High Court of Delhi has held that a party cannot challenge an arbitral award on the ground that the tribunal went beyond the scope of reference when it admittedly did not raise any objection when the alleged breach was first committed by the tribunal. The bench of Justice Dharmesh Sharma held that the tribunal’s decision to include certain invoices in the claim cannot be...