Arbitration
Third Party Funders In Arbitration Play A Vital Role In Ensuring Access To Justice; Arbitral Award Cannot Be Enforced Against Them: Delhi High Court
The Delhi High Court has ruled that a third-party funder, i.e., a non-signatory to arbitration agreement, who is not a party to the arbitral proceedings or the award, cannot be held liable for the awarded amount merely because it has funded a party in arbitral proceedings.The court dismissed the contention that third-party funders must be held liable for funding impecunious persons who...
Spicejet Should Pay Entire Arbitral Award Of Rs 380 Crore To Its Former Promotor Kalanithi Maran: Delhi High Court
The Delhi High Court has directed SpiceJet to pay the entire arbitral award of Rs. 380 crore to the airline’s former promotor, Kalanithi Maran, and his firm, Kal Airways Pvt. Ltd, in an execution petition filed by Maran seeking enforcement of a 2018 arbitral award passed in his favour.The court has also directed the airline to file an Affidavit of its assets within the specified time...
Power Of Arbitrator To Resolve Dispute In A Partnership Flows From Clauses Of Partnership Deed: Karnataka High Court
The Karnataka High Court has made it clear that in a partnership deed that provides for appointment of Arbitrator, the power of Arbitrator to resolve the dispute flows from the clauses of the partnership deed.A Single Judge bench of Justice S G Pandit, dismissed a petition filed by one Jameela who claimed to be the second wife of deceased partner Hajee Ibrahim and sought dissolution of the...
Clause Prohibiting Payment Of Interest On Delayed Payments, Doesn’t Prohibit Arbitrator From Granting Interest Under S. 31(7) Of The Act: Delhi High Court
The Delhi High Court has ruled that a clause in a contract that prohibits payment of interest on delayed payments, does not prohibit the arbitrator from granting interest under Section 31(7) of the Arbitration and Conciliation Act, 1996 (A&C Act). The bench of Justice Manoj Kumar Ohri held that the said stipulation only puts a restriction on the contracting party to claim interest on...
Insurance Policy Is To Be Referred To Arbitration When Only One Head Of The Claims Is Disputed And Not The Entire Liability: Delhi High Court
The High Court of Delhi has held that ordinarily the dispute under insurance policy claims would not be referred to arbitration when the reference is limited to quantum of compensation and the insurer disputes liability.The bench of Justice Prateek Jalan distinguished between a situation wherein the insurer denied the entire liability and where the entire liability is not disputed but only...
Arbitration Between Co-op Society and Member, Governed By S. 85(1) of the MSCS Act and Not Limitation Act: Delhi High Court
The Delhi High Court has ruled that the limitation period for reference of money dispute between the cooperative society and its defaulting member to arbitration, would be determined as per the provisions of Section 85(1)(a) of the Multi State Co-operative Societies Act, 2002 (MSCS Act), and not as per the Limitation Act, 1963.The bench of Justices Rajiv Shakdher and Girish Kathpalia...
Arbitration Cases Weekly Round-Up: 21 To 27 May, 2023
Supreme Court:Limitation Period For Arbitration | Cause Of Action To Appoint Arbitrator Commences From The “Breaking Point” Between Parties : Supreme CourtCase Title: M/s B and T AG vs Ministry of DefenceThe Supreme Court has held that the cause of action to appoint an arbitrator would commence from the “Breaking Point” at which any reasonable party would abandon efforts for at...
Non-Signatory Defendants Cannot Be Exposed To Arbitration Under Section 8 Of The A&C Act: Karnataka High Court
The Karnataka High Court has held that the non-signatory defendants cannot be exposed to arbitration under Section 8 of the A&C Act by allowing the dispute to be referred to arbitration.The bench of Justice Sreenivas Harish Kumar held that when the cause of action against all the defendants is stated to be the same, it cannot be bifurcated so to allow arbitration proceedings against few...
Limitation Period For Arbitration | Mere Negotiations Between Parties Will Not Postpone The Cause Of Action : Supreme Court
The Supreme Court while adjudicating an application filed under Section 11(6) of the Arbitration and Conciliation Act, 1996 for appointment of arbitrator, has held that the limitation period of three years for filing such application would commence from the date when the cause of action arose. Subsequent negotiations between the parties, which take place after the cause of action has arisen,...
Agreement Providing For Exclusive Appointment Of Party’s Nominee As Arbitrator, Conditional Acceptance; A Case Of Non-Survival Of Arbitration Clause: Delhi High Court
The Delhi High Court has ruled where the Arbitration Agreement unambiguously provides that in case the stipulated person cannot act as an Arbitrator, the dispute is not to be referred to Arbitration at all, the same reflected the conditional acceptance of Arbitration by the party.The bench of Justice Navin Chawla was dealing with an arbitration clause in a petition filed under Section 11 of...
Delay In Resuming The Arbitration Proceedings Will Not Make The Claim Time Barred: Calcutta High Court
The Calcutta High Court has held that once the arbitral proceedings have been commenced pursuant to reference under Section 21 of the Act, any delay in the conclusion/resumption of the such proceedings would not wipe out the arbitral reference. The bench of Justice Shekhar B. Saraf held that arbitral proceedings cannot be rendered inoperative for the reason that there was some delay in...
Arbitration: Courts Should Not Grant Injunction In Public Work Projects; Delhi High Court Reiterates Law
The Delhi High Court has ruled that in view of Sections 20A and 41(ha) of the Specific Relief Act, 1963 (SRA), the courts should grant no injunction relating to infrastructure projects where delay may be caused by such an injunction.The bench of Justice Chandra Dhari Singh was dealing with a petition filed under Section 9 of the Arbitration and Conciliation Act, 1996 (A&C Act) seeking...