Arbitration
Appointment Of An Arbitrator From A Narrow Panel
The 'Rule Against Bias' is a widely accepted principle of Natural Justice. When applied in the field of arbitration, this rule command that the arbitrator must be impartial, independent, and neutral. This rule comes into play if it is shown that the person concerned to be appointed as an arbitrator has a personal connection or personal interest or has personally acted in...
Court Exercising Power U/Sec 9 Arbitration Act Not Strictly Bound By CPC ; Should Not Withhold Interim Relief On Mere Technicality: Supreme Court
The Supreme Court observed that a court exercising power under Section 9 of the Arbitration and Conciliation Act is not strictly bound by provisions of CPC and should not withhold relief on the mere technicality.Proof of actual attempts to deal with, remove or dispose of the property with a view to defeat or delay the realisation of an impending Arbitral Award is not imperative for grant...
Arbitrator Can Award Interest On Interest Under The A&C Act: Orrisa High Court
The Orissa High Court has held that the arbitrator can award separate interest on claims which are in nature of interest for delayed payment. The Bench of Justice Arindam Sinha held that bar under Section 3 of the Interest Act, 1978 does not apply interest under the A&C Act. It held that under Section 31(7)(a) of the A&C Act there is no bar on the grant of interest...
Would Subsequent Agreement Cover Past Transactions ? Arbitrator To Decide: Delhi High Court
The High Court of Delhi has held that while exercising jurisdiction under Section 11 of the A&C Act, the High Court cannot examine an issue as to whether the arbitration clause in a subsequent agreement would govern past transactions of similar nature as it requires detailed consideration of clauses and surrounding circumstances. The Bench of Justice V. Kameswar Rao held that...
Rejection Of Belated Application For Amendment Of Claim - Not An Interim Award: Delhi High Court
The Delhi High Court has ruled that the order of the Arbitral Tribunal rejecting the application for amendment of statement of claims on the ground that it was filed at a belated stage, does not constitute an interim award and thus, it is not challengeable under Section 34 of the Arbitration and Conciliation Act, 1996 (A&C Act). While observing the distinction between the rejection...
Participation In Arbitral Proceedings Without Protest, In Absence Of Agreement On Seat; Venue Is Also The Seat Of Arbitration: Allahabad High Court
The Allahabad High Court has ruled that where the parties have failed to specifically mention the seat of arbitration and have participated in the arbitral proceedings at a place without any protest, the parties shall be said to have determined, by their conduct, the said venue of arbitral proceedings as also the seat of arbitration. Hence, the courts at the said place would...
Arbitration Clause In An Unregistered But Compulsorily Registrable Document Can Be Enforced: Uttarakhand High Court Reiterates
The Uttarakhand High Court recently observed that an arbitration agreement does not require registration under the Registration Act. Relying on the Supreme Court's findings in SMS Tea Estates Private Limited v. Chandmari Tea Company Private Limited, (2011) 14 SCC 66, a bench comprising Chief Justice Vipin Sanghi reiterated: "Even if it is found as one of the clauses in a contract...
Substitution Of Arbitrator Based On Allegation Of Collusion Can't Be Done Under Section 11 of A& C Act: Telangana High Court
The Telangana High Court has ruled that in an application filed under Section 11 of the Arbitration and Conciliation Act, 1996 (A&C Act), the Court cannot, on the ground of collusion, refuse to appoint the arbitrator as specified in the arbitration clause and appoint a substitute arbitrator. The Single Bench of Justice K. Lakshman held that the allegations regarding any...
Parties Can Deviate From Terms Of Jurisdiction Under The Arbitration Clause Only Once: Madras High Court
The Madras High Court has ruled that the parties have got the liberty to deviate from the terms with respect to the jurisdiction, as contained in the Arbitration Clause; however, the number of such deviations is limited to only one. The Single Bench of Justice R.N. Manjula held that waiver of the jurisdiction clause contained in the arbitration agreement can be presumed from the...
Interlocutory Order Passed By The Arbitrator, Rejecting Application For Amendment Of Claims; Not Challengeable Under Article 227: Delhi High Court
The Delhi High Court has reiterated that all interlocutory orders passed by the Arbitral Tribunal are not amenable to challenge under Articles 226 and 227 of the Constitution of India. The Single Bench of Justice C. Hari Shankar held that there is no statutory or other legal bar under the Arbitration and Conciliation Act, 1996 (A&C Act), including under the proviso to Section 34...
Writ Maintainable Against An Award Passed By Statutory Arbitrator Violating The Principles Of Natural Justice: Calcutta High Court
The Calcutta High Court has held that an award passed by the statutory arbitrator under the National Highways Act, 1956 where neither the notice of arbitration was served nor the copy of the award was given to the appellants is violative of principles of natural justice. The Bench of Justices Arijit Banerjee and Kausik Chanda held the availability of an alternative efficacious...
Arbitration Cases Weekly Round-Up: 4 September To 10 September, 2022
Supreme Court: Arbitration Clause Has To Be Given Effect Even If It Does Not Expressly State That Decision Of Arbitrator Is Final & Binding On Parties: Supreme Court Case Title: Babanrao Rajaram Pund versus Samarth Builders & Developers Citation: 2022 LiveLaw (SC) 747 The Supreme Court observed that an arbitration clause has to be given effect even if it...