Arbitration Weekly Round-Up: 11th March to 17th March 2024

Case Title: Aerosource India Pvt Ltd. Vs Geetanjali Aviation Pvt Ltd.

Citation: 2024 LiveLaw (Del) 296

The Delhi High Court single bench of Justice Dinesh Kumar Sharma dismissed a petition filed under Section 11 (5) of the Arbitration and Conciliation Act, 1996, noting that prima facie there was no arbitration agreement between Petitioner and Respondent. The High Court noted that Section 8(1), as amended in 2015, mandates the referral of parties to arbitration by a judicial authority unless there is prima facie finding that no valid arbitration agreement exists.

When Parties Agree For No Interest Payable Till Arbitral Award Is Made, Arbitrator Bound By This Agreement: Delhi High Court

Case Title: Rites Ltd Vs Ahuwalia Contract (India) Ltd. & Anr.

Citation: 2024 LiveLaw (Del) 295

The Delhi High Court single bench of Justice Prateek Jalan held that when parties agree that no interest shall be payable, the Arbitral Tribunal is bound by that agreement. The bench held that that such an agreement is not ultra vires under Section 28 of the Contract Act, 1872.

Delhi High Court Ceases Mandate Of Unilaterally Appointed Arbitrator Under General Conditions Of Contract

Case Title: Chabbras Associates vs M/s Hscc (India) Ltd & Anr.

Citation: 2024 LiveLaw (Del) 293

The Delhi High Court single bench of Justice Dinesh Kumar Sharma rejected the contention presented by Respondent, that the unilateral appointment of the arbitrator made in accordance with the contract cannot be challenged and the only option available to the petitioner is to challenge the mandate of the arbitrator. It emphasized that the unilateral appointment of an arbitrator as stipulated in Clause 25 of the GCC was inherently and blatantly unlawful.

Requirement Of Pre-litigation Mediation Under Section 12-A Of Commercial Courts Act Is Mandatory: Delhi High Court

Case Title: M/s Sabsons Agencies Private Limited Vs M/s Harihar Polymers & Anr.

Citation: 2024 LiveLaw (Del) 286

The Delhi High Court bench comprising Justice Prateek Jalan held that the requirement of pre-litigation meditation under Section 12-A of the Commercial Courts Act, 2015 is mandatory in nature.

Section 12-A of the Act outlines the mandatory requirement for pre-institution mediation before filing a suit, provided urgent interim relief is not sought. The Central Government may authorize Legal Services Authorities for this purpose, with a three-month mediation timeframe extendable by two months with parties' consent. Settlements reached hold the same status as arbitral awards under the Arbitration and Conciliation Act, 1996 (“Arbitration Act”).

Proceedings Under IBC Doesn't Exclude Court Jurisdiction To Entertain Section 11 A&C Applications: Delhi High Court

Case Title: Godavari Projects (J.V) Vs Union of India.

Citation: 2024 LiveLaw (Del) 287

The Delhi High Court single bench of Justice Sachin Datta held that proceedings contemplated in Section 14 of the Insolvency and Bankruptcy Code (IBC) do not expressly exclude the jurisdiction of the court or authorities to entertain applications under Section 11(6) of the Arbitration Act or other proceedings initiated by the corporate debtor against another party. It held that even if a Joint Venture is undergoing insolvency, the bench held that preclude the corporate debtor from filing an application under Section 11.

Fraud Regarding Internal Management Of Company Doesn't Go To Root Of Contract, Dispute Is Arbitrable: Delhi High Court

Case Title: Indigrid Technology Pvt. Ltd Vs Genestore India Pvt. Ltd

Citation: 2024 LiveLaw (Del) 292

The Delhi High Court single bench of Justice Jasmeet Singh held that fraud alleging regarding the internal management of the company doesn't go to the root of the contract. Therefore, the bench held that the dispute concerning the lack of authority to enter into a contract are arbitrable.

The bench held that the Court while deciding a petition under Section 11 of the Arbitration and Conciliation Act, 1996 is only required to see the existence of an Arbitration Clause.