Arbitration
Reference To Wrong Agreement in Arbitration Notice, Not Invalid If Agreement Otherwise Exists: Delhi High Court
The Delhi High Court has reiterated that mere reference to a wrong provision or term of the agreement cannot invalidate the notice invoking arbitration, if otherwise such power or provision exists in the document executed between the parties. The bench of Justice Navin Chawla was dealing with a petition filed under Section 11 of the Arbitration and Conciliation Act, 1996 (A&C...
Arbitration Cases Monthly Round-Up: February 2023
High Courts Bombay High Court: Court Not Powerless To Appoint Appropriate Arbitral Tribunal, Even If Party Forfeits Its Right Under Arbitration Clause: Bombay High Court Case Title: PSP Projects Limited versus Bhiwandi Nizampur City Municipal Corp The Bombay High Court has ruled that even if a party’s right to appoint its nominee in the Arbitral Tribunal as per the...
Merely Because The Borrower Is An MSME, It Would Not Be Governed By The Arbitral Mechanism Provided Under MSMED Act: Gujarat High Court
The Gujarat High Court has ruled that merely because the borrower is an MSME, it would not be governed by the provisions of the Micro, Small and Medium Enterprises Development Act, 2006 (MSMED Act), including the arbitral mechanism envisaged under the said Act. The bench of Justice Biren Vaishnav observed that though, as per the mechanism provided under the MSMED Act, the dispute...
Section 11 Petitions Seeking Relief But Not Raised In The Previous Arbitration; Gross Abuse Of Process of Court: Delhi High Court
The Delhi High Court has ruled that since the party had failed to challenge the termination of the Collaboration Agreement in the first round of arbitral proceedings, the demolition of the structure built by it under the said Collaboration Agreement would not give it a fresh cause of action. The bench of Justice Navin Chawla remarked that the cause of action for...
S. 34 Petition Can’t Be Amended To Introduce New Grounds Containing New Facts, To Challenge Arbitral Award: Delhi High Court Reiterates
The Delhi High Court has reiterated that though it is permissible to introduce an amendment in a petition filed under Section 34 of the Arbitration and Conciliation Act, 1996 (A&C Act), however, new grounds of challenge containing new material/ facts cannot be introduced when the said grounds were neither raised in the original petition under Section 34 nor before the...
Clause Exclusively Empowering Chief Project Manager To Appoint Arbitrator From A Panel Maintained By It, Illegal: Delhi High Court
The Delhi High Court has reiterated that when a person has itself become ineligible by operation of law to act as an arbitrator, it cannot nominate another person to act as arbitrator. The bench of Justice Yashwant Varma was dealing with an arbitration clause which exclusively empowered the Chief Project Manager to appoint the arbitrator from a panel which was itself maintained...
Order Passed Under Section 11 Of The Arbitration And Conciliation Act Cannot Be Reviewed: Calcutta High Court
The High Court of Calcutta that the A&C Act is a complete code in itself and it does not contain any provision for the review of an order passed under Section 11 of the Act. The Bench of Justice Shekhar B. Saraf held that power of review is a creature of statute and unlike the Supreme Court which has inherent power of review under Article 137 of the Constitution of India, no...
Arbitration Under Section 42 Of Special Economic Zones Act, 2005 Would Override A Contractual Arbitration Clause: Telangana High Court
The High Court of Telangana has held that arbitration under Section 42 of the Special Economic Zones Act, 2005 would override a contractual arbitration clause entered into between the parties. The bench of Chief Justice Ujjal Bhuyan held that Special Economic Zones Act, 2005 is a special legislation and Sections 42 and 51 of the Act gives it an overriding act over other acts and...
Arbitration Cases Weekly Round-Up: February 19 To February 25, 2023
Bombay High Court: Multiple Arbitrations By Arbitrator Involving The Same Co-operative Bank Under S. 84 Of MSCS Act; Not A Disqualification: Bombay High Court Case Title: Kalpesh Shantikumar Mehta & Ors. versus NKGSB Co-op. Bank Ltd & Anr. The Bombay High Court has ruled that reference of more than two arbitrations to the same arbitrator under Section 84 of the...
Multiple Arbitrations By Arbitrator Involving The Same Co-operative Bank Under S. 84 Of MSCS Act; Not A Disqualification: Bombay High Court
The Bombay High Court has ruled that reference of more than two arbitrations to the same arbitrator under Section 84 of the Multi-State Co-operative Societies Act, 2002 (MSCS Act), involving the same Co-operative Bank, would not fall foul of clause 22 of Schedule V of the Arbitration and Conciliation Act, 1996 (A&C Act). Noting that in the statutory arbitration contemplated under...
Arbitral Tribunal Has Power To Pass Interim Award On Basis Of Admissions Made Before IRP In CIRP Proceedings: Delhi High Court
The Delhi High Court has ruled that the Arbitral Tribunal has the power under Section 31(6) of the Arbitration and Conciliation Act, 1996 (A&C Act) to pass an interim Award on the basis of the admissions made by a party before the Interim Resolution Professional (IRP) in the CIRP proceedings initiated under the Insolvency and Bankruptcy Code, 2016 (IBC) against the...
AA Ought To Issue Notice To Respondent(s) Before Passing Any Final Direction Against Them: NCLAT Delhi
The National Company Law Appellate Tribunal (“NCLAT”), Principal Bench, comprising of Justice Ashok Bhushan (Chairperson) and Dr. Alok Srivastava (Technical Member) while adjudicating an appeal filed in Rajasthan State Mines & Minerals Ltd. v Parag Sheth & Ors., has set aside an order whereby the Adjudicating Authority had issued final directions against the respondent,...