Arbitration
Bank Guarantee Expired During The Stay Period, Must Be Renewed Once The Order Granting Stay Is Vacated Due To Withdrawal Of Petition: Himachal Pradesh High Court
The Himachal Pradesh High Court has held that Bank Guarantee expired during the stay period, must be renewed once the order granting stay is vacated due to withdrawal of petition. The bench of Justice Rakesh Kainthla held that principle of restitution demands that the party, who had received the benefit of an order should make restitution to the other party for what he had lost, if...
Accrual Of Cause Of Action At A Place Is Not A Consideration For Determining Jurisdiction For The Purpose Of Section 11 Of A&C Act: Delhi High Court
The Delhi High Court has held that the accrual of cause of action at a place for pursuing a substantive legal action is not a consideration for determining jurisdiction for the purposes of Section 11 of the A&C Act. The bench of Justice Manoj Kumar Ohri reiterated that the place of arbitration would be the seat of arbitration when there is no contrary indicia present in the...
Contractor Claiming Loss Of Profits Due To Delayed Execution Must Prove That Other Works Were Lost Due To Delay : Supreme Court
The Supreme Court Bench comprising Justice Sanjiv Khanna and Justice M.M. Sundresh, has held that in arbitral proceedings where the execution of a contract is delayed and the Contractor claims loss arising from depletion of income, then the Contractor must prove that there was alternative work available for him/her by placing on record invitation to tender, which were rejected by the...
Right Of Pledgee To Sell Pledged Shares Is Subservient To The Pledgor’s Right To Redeem Such Shares: Delhi High Court
The Delhi High Court has held that the right of the pledgee to sell the pledged shares for default to repay the loan amount is subservient to the right of the pledgor to redeem such shares under Section 177 of Indian Contract Act. The bench of Justice Manoj Kumar Ohri held that the pledged shares cannot be sold by the pledgee without deciding on the offer made by the pledgor to...
Unstamped Agreement, Quantum Not Disputed, Court Can Collect While Deciding Section 11 Petition: Bombay High Court
The High Court of Bombay has held that the Court exercising power under Section 11 of the A&C Act can itself determine and collect the unpaid or deficit stamp duty payable upon the unstamped or insufficiently stamped agreement. The bench of Justice Manish Pitale relied upon the recent judgment of the Delhi High Court in Spendor Landbase v. Aparna Ashram Society[1] to hold that...
Delay In The Handing Over The Work Front Affecting Completion Is A Material Breach : Delhi High Court
The Delhi High Court has held that delay in the handing over of the Right of Way is a material breach of contract if it affects the issuance of Completion Certificate or delays the Commercial Date of Operation (COD). The bench of Justice Manoj Kumar Ohri upheld an arbitral award wherein the arbitrator held NHAI to be in material breach of the contract for its failure to provide the...
Doctrine Of Severability Applicable To Arbitral Awards, If Good Part Can Survive On Its Own: Allahabad High Court
The Allahabad High Court has held that doctrine of severability can be applied to arbitral awards for separating the good part from the bad, provided they are independent of each other and findings in the award are not substituted by the Court. The bench comprising of Justices Manoj Kumar Gupta and Vikram D. Chauhan held,“We have thus, no hesitation in holding that scheme of the Act does...
Arbitration Cases Weekly Round-Up: 18 To 24 September 2023
Supreme Court: 'Every Arbitrator May Not Be Legally Trained, Some Decisions Are Based On Equity' : Supreme Court Explains Scope Of Judicial Interference In Arbitral Awards Case Title: Batliboi Environmental Engineers Limited vs Hindustan Petroleum Corporation Ltd and Anr. The Supreme Court bench comprising Justice Sanjiv Khanna and Justice M.M. Sundresh, has held that...
Arbitration Award And Stamp Duty Paid On It
Award of an Arbitrator is an instrument chargeable with duty as per section 3 of the Indian Stamp Act, 1899. There is no exemption for any Award. Is any duty payable on an Award dismissing a claim? If any duty is payable on such an Award, what is the rate at which it is payable? If no duty is payable, even when the property involved in the dispute is valued at hundreds of crores of...
Supreme Court Explains Scope Of Judicial Interference In Arbitral Awards
The Supreme Court Bench comprising Justice Sanjiv Khanna and Justice M.M. Sundresh, has held that while setting aside an arbitral award for being violative of Section 28(3) of the Arbitration and Conciliation Act, 1996, it must be considered that the Arbitrator is empowered to interpret the contract terms reasonably. Arbitrator’s interpretation cannot be a ground for setting aside of...
Liquidated Damages Provided In The Agreement Cannot Be Awarded To A Party In Absence Of The Proof Of Actual Loss: Delhi High Court
The High Court of Delhi has held that the sum agreed by the parties as liquidated damages would not dispense with the requirement of proof by the party claiming liquidated damages that it actually suffered a loss. The bench of Justice Manoj Kumar Ohri held that a sum ascertained as liquidated damages in the contract is not in the nature of penalty, but is a pre-estimate of loss...
Whether The Arbitration Agreement Is Vitiated By Fraud Should Be Left To The Wisdom Of The Arbitrator: Delhi High Court Reiterates
The High Court of Delhi has reiterated that a question as to whether the arbitration agreement is vitiated by fraud should be left to the wisdom of the arbitrator who will be free to decide the same on the basis of the evidence and the Court exercising power under Section 11 of the A&C Act should not get into such a finding. The bench of Justice Rekha Palli held that merely because...