Arbitration
Arbitration Cases Weekly Round-Up: 5 February To 11 February, 2023
Bombay High Court: SPA Which Gives Option To Resell Shares To Vendor, Not A ‘Forward Contract’: Bombay High Court Case Title: Percept Finserve Pvt Ltd & Anr. versus Edelweiss Financial Services Ltd The Bombay High Court has ruled that a Share Purchase Agreement (SPA), which gives an option to the purchaser to require the seller/vendor to repurchase the shares on...
Agreement To Explore Conciliation Before Arbitration, Only Directory In Nature: Delhi High Court
The Delhi High Court has ruled that the agreement between the parties to explore conciliation before resorting to arbitration, is not mandatory in nature. The Court took note that as per Section 77 of the Arbitration and Conciliation Act, 1996 (A&C Act), in cases of urgency, arbitral proceedings can be initiated even when conciliation proceedings are pending for preserving...
SPA Which Gives Option To Resell Shares To Vendor, Not A ‘Forward Contract’: Bombay High Court
The Bombay High Court has ruled that a Share Purchase Agreement (SPA), which gives an option to the purchaser to require the seller/vendor to repurchase the shares on the occurrence of a contingency, does not constitute a ‘forward contract’ and thus, the same is enforceable. The bench of Justices K. R. Shriram and Rajesh S. Patil, were dealing with an arbitral award, where the...
Arbitral Tribunal Not Justified In Dismissing Claim Petition For Not Being Verified As Per CPC: Gujarat High Court
The Gujarat High Court has ruled that failure to abide by the procedural laws would not be fatal to the arbitral proceedings and thus, the Arbitral Tribunal was not justified in dismissing the claim petition/ statement of claims solely on the ground that it was not verified as contemplated under Order VI Rule 15 of the Code of Civil Procedure, 1908 (CPC). The bench of...
Delay In Approaching Appointing Authority For Constitution Of Tribunal, Won’t Render Claims Time Barred: Delhi High Court
The Delhi High Court has ruled that the limitation period within which a party is required to approach the court for seeking constitution of the arbitral tribunal, cannot be conflated with the limitation period for invoking the arbitration agreement. Thus, any delay by the party in taking further steps for constitution of an arbitral tribunal, will not render the party’s substantive...
Sec 34 Petition Is Not Non-Est, Even If Award Is Not Filed In A Separate Folder: Delhi High Court
The Delhi High Court has ruled that the error committed by the petitioner/award debtor in not filing the documents, including the copy of the Arbitral Award challenged by it, in a separate e-folder, as prescribed in the Delhi High Court (Original Side) Rules, 2018, would not render the petition filed by it under Section 34 of the Arbitration and Conciliation Act, 1996 (A&C Act)...
Order Passed Under S. 36 Of Arbitration Act Not Appealable Under S. 13 Of Commercial Courts Act: Delhi High Court
The Delhi High Court has ruled that appeal against the order of the High Court, passed under Section 36 of the Arbitration and Conciliation Act, 1996 (A&C Act), is not maintainable under Section 13(1A) of the Commercial Courts Act, 2015, since it is not one of the orders enumerated under Order XLIII of the Code of Civil Procedure, 1908 (CPC), from which an appeal would lie. The...
Arbitration Cases Weekly Round-Up: 29 January To 4 February, 2023
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 arbitration clause,...
Arbitration Cases Monthly Round-Up: January 2023
Supreme Court: Starting Point Of Limitation U/ Section 34(3) Arbitration Act In Cases Of Suo Motu Correction Of Award: Supreme Court Explains Case Title: USS Alliance versus State of Uttar Pradesh The Supreme Court has observed that the starting point for the limitation under Section 34(3) Arbitration and Conciliation Act, in case of suo moto correction of the award, would be...
Arbitrator’s Power To Grant Interim Measures Is pari passu With Court’s Powers Under S. 9 Of Arbitration Act: Calcutta High Court
The Calcutta High Court has ruled that, post the Amendment Act of 2015, the powers of the Arbitrator to grant interim measures under Section 17 of the Arbitration and Conciliation Act, 1996 (A&C Act), is pari passu with the powers of the Court under Section 9 of the Act. The bench of Justice Shekhar B. Saraf remarked that the test applicable for granting interim...
Delhi High Court Upholds Use Of Rule Of Contra Proferentem By Arbitrator While Interpreting Contract
The Delhi High Court has ruled that, if the arbitrator uses a contract executed between the parties to determine a dispute, the clauses of the contract should, in principle, be construed contra proferentem, i.e., the clauses should be interpreted against the party that drafted it. The bench of Justice Chandra Dhari Singh remarked that the rule of contra proferentem can be regarded as...
Question Of ‘Accord And Satisfaction’ Cannot Be Determined Under Section 11 Of The A&C Act: Calcutta High Court
The High Court of Calcutta has held that the jurisdiction of the Court under Section 11 of the A&C Act is limited to the examination of the existence of the arbitration clause and determination of an arbitrable dispute. The bench of Justice Shekhar B. Saraf relied on the judgment in Mayavati Trading v. Pradyvat Deb Burman[1] to hold that a Court exercising powers under Section 11...