Arbitration
Whether An Agreement Is A Works Contract Or Not To Be Decided By Arbitrator For Applying MSMED Act: Delhi High Court
The Delhi High Court has held that an issue whether an agreement is in the nature of works contract and the consequent issue of applicability of MSMED Act to such contracts is to be decided by the arbitrator. The bench of Chief Justice Satish Chandra and Justice Saurabh Banerjee dismissed an LPA against the orders of a single judge bench holding that the single bench had...
Arbitral Award By MSEF Council Without Conciliation Process Under Section 18(2) Is Liable To Be Set Aside: Orrisa High Court
The High Court of Orrissa has held that the failure of the MSFE Council to refer the parties to ‘Conciliation’ as provided under Section 18(2) of the MSMED Act renders the award passed by it under Section 18(3) susceptible to setting aside under Section 34 of the A&C Act. The bench of Justice S.K. Panigrahi held that in terms of Section 18(2) of the MSMED Act, the MSEF...
Arbitration Cases Weekly Round-Up: 31 July To 06 August 2023
Calcutta High Court: Without Pre-Deposit U/S 19 MSMED Act, Application U/S 34 Arbitration Act Remains 'Stillborn’ For Purpose Of Stay: Calcutta High Court Case Title: The Board of Major Port Authority for the Shyama Prasad Mookerjee Port, Kolkata. vs Marine Craft Engineers Private Limited The Calcutta High Court recently dismissed an application filed by the Board of Major...
Arbitrator Cannot Add The Amount Of Pre-Reference Interest To The Principal Amount While Determining Pendente Lite Interest: Delhi High Court
The Delhi High Court has held that the arbitrator cannot add the amount of pre-reference interest to the principal amount while determining pendente lite interest as the same would amount to levying interest on a compounded basis. It held that the principal amount has to remain static throughout. The bench of Justices Yashwant Varma and Dharmesh Sharma held that Section 31(7)(a) of...
Himachal Pradesh High Court Stays Arbitration Proceedings Commenced Without Fulfilling The Pre-Arbitration Condition Of Negotiation
The Himachal Pradesh High Court has stayed the arbitration proceedings that were unilaterally commenced by a party without complying/fulfilling the pre-condition of negotiation as mandated by the terms of the agreement between the parties. The bench of Justice Tarlok Singh Chauhan observed that when the dispute resolution clause in the agreement mandates the parties to...
Arbitration Cases Monthly Round-Up: July 2023
Supreme Court Can Ineligible Person Appoint Arbitrator? Supreme Court Defers Hearing As Centre Is Considering Reforms To Arbitration & Conciliation Act Case Title: Central Organisation for Railway Electrification vs. M/s ECI SPIC SMO MCML (JV) A Constitution Bench of the Supreme Court on Wednesday decided to defer for two months the hearing of a reference which raises...
Without Pre-Deposit U/S 19 MSMED Act, Application U/S 34 Arbitration Act Remains 'Stillborn’ For Purpose Of Stay: Calcutta High Court
The Calcutta High Court recently dismissed an application filed by the Board of Major Port Authority for the Shyama Prasad Mookerjee Port, Kolkata, for staying the operation of an arbitral award passed by the West Bengal State Micro Small Enterprises Facilitation Council (“MSME Council”).In refuting the petitioners contention that filing an application u/s 34 of the Arbitration...
Arbitration Act| Alleged Liquidity Crunch Of Award Debtor Not Sufficient Cause Under Order XXI Rule 26 CPC To Grant Stay Of Enforcement Of Award: Delhi High Court
The Delhi High Court has ruled that alleged liquidity crunch of the award debtor cannot be a sufficient cause under Order XXI Rule 26(1) of the Code of Civil Procedure, 1908 (CPC) to grant stay of the enforcement proceedings in relation to an arbitral award. The bench of Justice Yogesh Khanna made the observation while hearing a plea seeking modification of the court’s order in...
Delhi High Court Upholds Arbitral Award Passed Against Spicejet In Favour Of Its Former Promoter Kalanithi Maran
The Delhi High Court has upheld the 2018 arbitral award passed in favour of Kalanithi Maran, former promoter of SpiceJet, and his firm Kal Airways Pvt Ltd, in a share transfer dispute with the airline and its current promoter, Ajay Singh. The bench of Justice Chandra Dhari Singh has also dismissed Maran’s challenge to the award where his claim for damages and restitution of...
Arbitration Act | Admitted Facts Don’t Breach ‘Twin-Benchmark’ Of Fraud Or Corruption: Calcutta High Court Declines Stay Of Award
The Calcutta High Court has recently dismissed a plea filed by petitioners West Bengal Small Industries Development Corporation Limited (“WBSIDC”) for unconditional stay of an arbitral award passed against it in 2019, on the grounds of fraud and corruption, under Section 36(3) of the Arbitration & Conciliation Act, 1996 (“Act”).In holding that the facts of the case, along with...
Arbitration Cases Weekly Round-Up: 24 July To 30 July 2023
Calcutta High Court: Arbitrator Appeared As Counsel For An ‘Affiliate Company’ Of The Claimant, Award Liable To Be Set Aside : Calcutta HC Case Title: Gopaldas Bagri vs C&E Ltd The High Court of Calcutta has held that an arbitration award is liable to be set aside for violation of Sections 12(1), 12(2) and 12(5) of the Arbitration and Conciliation Act, 1996 when...
Arbitrator Appeared As Counsel For An ‘Affiliate Company’ Of The Claimant, Award Liable To Be Set Aside : Calcutta HC
The High Court of Calcutta has held that an arbitration award is liable to be set aside for violation of Sections 12(1), 12(2) and 12(5) of the Arbitration and Conciliation Act, 1996 when the arbitrator appeared in court for an ‘affiliate company’ of the claimant during the pendency of the arbitration without disclosing such an engagement to the respondent. The bench of...