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...

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...