Courts Hearing Challenges To NH Act Arbitral Awards Cannot Enhance Compensation: Karnataka High Court

The Karnataka High Court has reiterated that courts cannot enhance compensation by modifying arbitral awards in land acquisition disputes under the National Highways Act. Referring to the precedent set by apex court, the court held, "The question whether the court could modify the award was also considered by the Constitution Bench of the Supreme Court in a recent decision in Gayatri Balasamy v. ISG Novasoft Technologies Limited3 . The Supreme Court, by a majority held that the arbitral award...

HC Master's Order In Arbitration Execution Treated As Commercial Division Order, Not Appealable: Madras High Court

The Madras High Court has recently held that when a Master passes an order in execution of an arbitral award arising out of a commercial dispute, the order is equivalent to one passed by the Commercial Division of the High Court itself and cannot be challenged again before the Commercial Division. "When a Master passes an order in an Execution Petition filed under Section 36 of the Arbitration Act, the said order is equivalent to the order of the Commercial Division of the High Court and there...

Algorithm-Based Arbitrator Selection Cannot Cure Unilateral Appointment Illegality: Bombay High Court

Recently, the Bombay High Court came down heavily on banks and non-banking finance companies for attempting to legitimise unilateral arbitrator appointments through institution-backed and algorithm-based selection mechanisms, holding that such practices are manipulative devices to circumvent Supreme Court rulings on arbitrator independence and neutrality. Justice Somasekhar Sundaresan set aside arbitral orders passed in proceedings initiated by IIFL Finance and issued directions for compliance...

Arbitral Award Cannot Be Set Aside In Entirety If Claims Are Separable: Karnataka High Court

The Karnataka High Court has held that an arbitral award comprising distinct and separable claims cannot be set aside in its entirety merely because one component is found invalid, as courts have the power to sever the invalid portion while sustaining the valid portion. A Division Bench of Chief Justice Vibhu Bakhru and Justice C.M. Poonacha allowed the appeal filed by Pinaka Infomatics Private Limited and modified the order of the Commercial Court, Bengaluru, which had set aside the arbitral...

Arbitration Agreement Inferred From Invoices & Conduct Despite No Clause In Purchase Orders: Bombay High Court

The Bombay High Court on 5 May held that an arbitration agreement can be inferred even in the absence of an express arbitration clause in the original purchase orders, where subsequent contractual documents and the conduct of the parties indicate a clear intention to arbitrate. Justice Sandeep V. Marne allowed a Section 11 application by Hitesh Coal Traders and appointed Advocate Suyash Gadre as the sole arbitrator to adjudicate disputes with Indapur Dairy & Milk Products Ltd. arising from...

Arbitration Clause Signed By Only One Party Invalid, Award Unenforceable: Delhi High Court

The Delhi High Court on 5 May held that an arbitration clause contained in a document signed by only one party does not constitute a valid arbitration agreement under Section 7 of the Arbitration and Conciliation Act, 1996, in the absence of material demonstrating mutual consent to arbitrate. A Division Bench of Justices Anil Kshetarpal and Amit Mahajan further held that an arbitral award founded on such a defective agreement is a nullity and incapable of execution and upheld the Executing...

Dubai International Financial Centre Courts Says It Can Grant Asset Freeze Orders After Foreign Arbitration Awards

The Dubai International Financial Centre (DIFC) Court of First Instance has held that the DIFC Courts can grant freezing orders to help enforce foreign arbitral awards even after the arbitration proceedings have ended. “The words 'current or future' do not limit the scope of the ancillary jurisdiction which is granted to the DIFC Courts in relation to arbitral proceedings,” H.E. Justice Roger Stewart KC said while interpreting Article 15(4) of the DIFC Court Law. The court said the phrase...

Claims Not Part Of Insolvency Resolution Plan Cannot Be Revived Through Arbitration: Delhi High Court

The Delhi High Court has held that claims that are not part of an approved insolvency resolution plan cannot later be revived through arbitration. Justice Harish Vaidyanathan Shankar observed: “Once the corporate insolvency resolution process attains finality within the statutory framework contemplated under the IBC, the claims of all stakeholders stand crystallized and are thereafter governed exclusively by the terms of the Resolution Plan. Such claims cannot be revived, re-agitated, or...

Unenforceable Foreign Arbitral Award Does Not Extinguish Original Cause Of Action: Delhi High Court

The Delhi High Court has reiterated that a foreign arbitral award that has been found unenforceable in India does not extinguish the original civil claim between parties, while restoring a recovery suit filed by a U.S.-based almond supplier. A Division Bench of Justice Anil Kshetarpal and Justice Amit Mahajan held, “the cause of action for recovery of the amount claimed does not cease to exist merely because a foreign arbitral award has been passed, particularly when such award has been held to...

Karnataka High Court Allows Alternate Security In Arbitral Award Execution Despite Finality Of Stay Condition

The Karnataka High Court has held in an arbitral award execution matter that courts can modify conditions imposed while granting a stay, even if such conditions have attained finality, to secure the ends of justice. Justice H. T. Narendra Prasad observed: “While the condition imposed earlier has attained finality, the same does not preclude this Court from moulding the relief in execution proceedings so as to secure the ends of justice, particularly when adequate alternative security is...

Karnataka High Court Dismisses AVTEC Appeal, Holds Unilateral Appointment Of Sole Arbitrator Invalid

The Karnataka High Court on 29 April dismissed an appeal filed by AVTEC Limited and upheld the Commercial Court's order setting aside an arbitral award. A Division Bench of Justices Anu Sivaraman and T.M. Nadaf held that parties cannot permit unilateral appointment of a sole arbitrator under the Arbitration and Conciliation Act, 1996, and also ruled that a party which participates in arbitration without objection cannot later dispute jurisdiction. It observed: “The appellant having...

Madras HC Refuses To Strike Off Suit In Dispute Over 49th South India Motor Rally Despite Arbitration Clause

The Madras High Court has refused to strike off a civil suit over disputes relating to a motorsports event, including the 49th South India Rally, holding that the existence of an arbitration clause does not by itself bar the jurisdiction of a civil court. “Further, the existence of an arbitration clause does not ipso facto bar the jurisdiction of the Civil Court unless the procedure contemplated under the Section 8 of the Arbitration and Conciliation Act, 1996 is duly invoked before the...