Arbitration Cases Weekly Round-Up: 6th November - 12th November

Supreme CourtCourt Can Examine If Arbitration Clause Is Arbitrary & Violates Article 14 While Considering S.11(6) Application: Supreme CourtCase Title: Lombardi Engineering Ltd v. State of UttarakhandCitation: 2023 LiveLaw (SC) 958In a significant judgment, the Supreme Court held that a clause in an arbitration agreement which is not in consonance with the Constitution cannot be enforced....

Interpretation Of Contract Primarily A Matter For Arbitrator To Determine, Scope Of Section 34 Arbitration Act Limited: Delhi High Court

A Division Bench of the Delhi High Court recently allowed restoration of an arbitral award, noting that it was not within the scope of the Single Judge u/s 34 of A&C Act to re-interpret the contract between the parties and substitute the finding of the Arbitrator’s despite it being plausible and well-reasoned.The court referred to Ssangyong Engineering and Construction Co. Ltd. v. NHAI...

Interested Party Cannot Appoint Arbitrator Unilaterally, Award Passed By An Ineligible Arbitrator A Nullity: Delhi High Court

A Division Bench of the Delhi High Court has reiterated that a party interested in the dispute cannot unilaterally appoint an Arbitrator, and if any Award is passed as a result of such unilateral appointment, the same would be a nullity.The Bench, comprising Justices Sanjeev Sachdeva and Manoj Jain, noted that the respondents’ nomination of the Arbitrator was without reference to the court...

No Separate Application Under Section 8 Of The A&C Act Is Required When The Objection Is Duly Raised In The Written Submissions: Delhi High Court

The High Court of Delhi has held that once a party has duly taken objection to the jurisdiction of the Court to entertain the suit due to the presence of the arbitration clause between the parties in its written statement, it would be sufficient compliance of Section 8 of the A&C Act and there is no need for a separate application. The bench of Justice C. Hari Shankar held that...

Section 8 Of A&C Objection Taken In Application For Grant Of Leave To Defend The Suit Cannot Be Considered Belated: Delhi High Court

The High Court of Delhi has held that an objection regarding non-maintainability of the suit due to the presence of the arbitration agreement cannot be considered to be raised belatedly in terms of Section 8 of the A&C Act when it was taken in the application under Order XXXVII Rule 3(5) for grant of leave to defend the suit. The bench of Justice C. Hari Shankar held that in terms...

Continuing To Contest The Suit Does Not Waive The Right To Arbitration When A Section 8 Objection Was Raised In Written Submissions And Arguments: Delhi High Court.

The High Court of Delhi has held that a party cannot be deemed to have waived off its right to arbitration merely because it continued to contest the suit when it had specifically raised objection to the maintainability of the suit due to the presence of the arbitration agreement. The bench of Justice C. Hari Shankar held that when a party takes a specific objection predicated...

Arbitration Clause In The Original Contract Would Also Apply To Inseparable Additional Work Carried Out Without Execution Of A Formal Agreement: J&K&L High Court

The Jammu & Kashmir and Ladakh High Court has held that the arbitration clause contained in the original contract would also govern any dispute arising out of an additional work carried out without execution of a formal agreement. The bench of Chief Justice N. Kotiswas Singh held that when a contractor, initially tasked with constructing a single-lane bridge, is subsequently...

Court Exercising Powers Under Section 34 Of The A&C Act Cannot Allow Claims Rejected By The Arbitral Tribunal: Delhi High Court

The Delhi High Court has held that the Court exercising powers under Section 34 of the A&C Act cannot allow claims which were disallowed/rejected by the arbitral tribunal. The bench of Justices Suresh Kumar Kait and Neena Bansal Krishna held that Section 34 of the A&C Act does not permit the Court to rewrite an arbitral award and the Court can either set aside or upheld...

Arbitration Weekly Round-Up: 30th October to 5th November

International Judgments Hong Kong Court Refuses To Enforce A Mainland Arbitration Award For Failure Of Arbitrator To Meaningfully Engage With Arbitral Proceedings Case Title: SONG LIHUA v. LEE CHEE HON, CONSTRUCTION AND ARBITRATION PROCEEDINGS NO. 111 OF 2022 Citation: [2023] HKCFI 2540 The Hong Kong Court of First Instance has refused enforcement of a Mainland (China) award...

Section 29A Permits The Court To Extend The Mandate Of The Arbitral Tribunal Even When The Application Is Made After The Expiry Of Time Limit Provided Therein: Delhi High Court

The Delhi High Court has held that the Court exercising powers under Section 29A of the A&C Act is empowered to extend the mandate of the arbitrator even in cases where the application seeking extension of time is not made within the time limit fixed for the making of the award. The bench of Justice Sachin Datta held that the purport of Section 29A of the A&C Act is clearly not...

No ‘Contra-Indicia’ To Un-Seat Venue: Calcutta High Court Reiterates The Law On Seat & Venue In Arbitral Proceedings.

The Calcutta High Court has held that the venue for arbitration, as decided by the parties under their contractual agreement would automatically be the seat for arbitration, in the absence of any ‘contra-indicia.’In rejecting jurisdictional objections on its competence to entertain an application under Section 34 of the Arbitration & Conciliation Act, 1996 (“A & C Act”)...

Delhi High Court Grants Relief To “34 Chowringhee Lane” Acquirer, Sets Aside Fetters Put By Arbitrator On Opening Of Franchisees

Justice Sachin Datta of the Delhi High Court recently granted relief to “34 Chowringhee Lane” acquirer-HDA Flavours Pvt. Ltd., ruling that the Arbitrator, while dealing with a Section 17 application, should not have interdicted it from creating new franchisees.“A blanket embargo on the appellant from creating any new franchisee or entering into such business agreements as may be...