Works Contract Payment Dispute Can Proceed In MSME Arbitration: Madras High Court

The Madras High Court has refused to interfere with an order of the Micro and Small Enterprises Facilitation Council rejecting a Section 16 jurisdictional objection, holding that a payment claim arising from services under a civil works contract falls within the scope of the MSMED Act and can be adjudicated in arbitration before the Council. Justice S. Sounthar observed that while courts ordinarily do not intervene when an Arbitral Tribunal rejects a jurisdictional objection, this case required...

Delhi High Court Refers Suit Alleging Copyright Infringement To Arbitration As Dispute Stems From Agreement

The Delhi High Court has recently referred to arbitration a commercial suit alleging copyright infringement and diversion of business after holding that the dispute, in the facts of the case, arose from the parties' contractual collaboration. Justice Tejas Karia passed the order while allowing an application filed under Section 8 of the Arbitration and Conciliation Act seeking reference of the dispute to arbitration. The suit had been filed by Terix Computer Service India Pvt. Ltd., which...

Approval Of Insolvency Resolution Plan Not An Automatic Bar To Arbitration: Karnataka High Court

The Karnataka High Court on 26 February held that approval of a Corporate Insolvency Resolution Plan does not automatically bar disputes from being referred to arbitration. Where a valid arbitration agreement exists, any objections concerning the impact of the Resolution Plan on the claims must be adjudicated by the arbitral tribunal under Section 16, and cannot be considered at the appointment stage under Section 11 of the Arbitration and Conciliation Act, 1996. The Single Bench comprising...

Absence Of Physical Signature Does Not Invalidate Arbitration Agreement If Correspondence Shows Reliance On It: Bombay High Court

The Bombay High Court has recently refused to set aside an ex-parte arbitral award arising out of a commercial toy retail franchise dispute, holding that the absence of a physical signature on a contract would not invalidate the arbitrator's finding that an arbitration agreement existed, particularly where correspondence between the parties indicated reliance on the agreement. A single bench of Justice Somasekhar Sundaresan observed that “the absence of an actual physical signature would not...

General Contempt Jurisdiction Cannot Be Invoked Directly For Breach Of Arbitral Interim Orders: Delhi High Court

The Delhi High Court on 5 February held that parties cannot bypass the arbitral process by approaching the High Court directly for alleged violation of an interim order passed by an arbitral tribunal. Any contempt proceedings must follow the procedural framework under the Arbitration and Conciliation Act, 1996. Justice Saurabh Banerjee dismissed a contempt petition filed by Renaissance Buildcon Company Pvt Ltd and its directors, while noting that the respondents, Tarjinder Kumar Bansal and...

Setting Aside Of Arbitral Award Does Not Automatically Remand Matter To Arbitrator: Kerala High Court

The Kerala High Court recently held that once an arbitral award is set aside under Section 34 of the Arbitration and Conciliation Act, 1996, the matter cannot be treated as remanded to the arbitrator unless a party had sought recourse to Section 34(4) during the pendency of the challenge proceedings. Justice C. Jayachandran, rejected the National Highways Authority of India's (NHAI) plea of “implicit remand” finding that no such request had ever been made and that the District Court had...

Supreme Court Refuses To Interfere With Bombay High Court Ruling In Vedanta–Sunflag LAM Coke Arbitration Dispute

The Supreme Court recently declined to interfere with a judgment of the Bombay High Court dismissing Vedanta Ltd's writ petition challenging an arbitral order in its dispute with Sunflag Iron & Steel Co. Ltd over the purchase and supply of LAM Coke. The court also imposed costs of Rs 5 lakh on the company. A Bench of Justices Pamidighantam Sri Narasimha and Alok Aradhe dismissed Vedanta's special leave petition, observing: “We are not inclined to interfere with the impugned judgment and...

Arbitration Not Available Under WB Premises Requisition Act After Requisition Lapses: Calcutta High Court

The Calcutta High Court has recently refused to appoint an Arbitrator to determine compensation for the period from April 1, 1992 to January 12, 2023, during which the Kolkata Municipal Corporation (KMC) continued to occupy a private property after expiry of requisition, holding that once the requisition ended, the statutory arbitration mechanism under the West Bengal Premises Requisition and Control (Temporary Provision) Act, 1947, could no longer be invoked. Dismissing the writ petition,...

Delhi High Court Declines Interference With Arbitral Award In TDI-DMRC Advertising Rights Dispute

The Delhi High Court on 24 February dismissed a petition filed by TDI International India Ltd., challenging an arbitral award in a dispute with Delhi Metro Rail Corporation (DMRC), holding that no grounds existed for interference under Section 34 of the Arbitration and Conciliation Act, 1996 (Arbitration Act). Justice Harish Vaidyanathan Shankar observed: “...the grant of an ad hoc remission of 50% of the licence fee for the uninstalled area represents an exercise of contractual interpretation...

Delhi High Court Dismisses UOI Challenge To ₹32.76 Crore Arbitral Award For Varindera As Time-Barred

The Delhi High Court recently dismissed the Union's challenge to a Rs. 32.76-crore arbitral award in favour of Varindera Constructions Limited. The Court held that the initial petition filed under Section 34 of the Arbitration and Conciliation Act, 1996 (Arbitration Act) was non-est filing and could not halt the running of limitation. A Bench comprising Justice Harish Vaidyanathan Shankar in a judgement dated 27 February observed that courts lack jurisdiction to condone delay beyond the...

Delhi High Court Stays Encashment of Conditional Bank Guarantees, Says Invocation Prima Facie Extra-Contractual

The Delhi High Court has held that a determinable contract cannot be protected against termination. However, interim relief under Section 9 of the Arbitration and Conciliation Act, 1996 can be granted to stay encashment of conditional bank guarantees if the proposed invocation is prima facie not traceable to the contract. Justice Harish Vaidyanathan Shankar passed the order in a petition filed by Sadguru Engineers and Allied Services Pvt Ltd against National Highways Infrastructure Development...

Supreme Court Dismisses SpiceJet Challenge To ₹144.51 Crore Deposit Order In Dispute With Kalanithi Maran

Calling it “an abuse of the process,” the Supreme Court on Friday refused to interfere with a Delhi High Court order directing SpiceJet Limited and its Chairman Ajay Singh to deposit Rs 144,51,69,887 in their long-running arbitration dispute with former promoter Kalanithi Maran and Kal Airways Pvt. Ltd. Dismissing the Special Leave Petitions with costs of Rs 1 lakh, the bench of Justice Pamidighantam Sri Narasimha and Justice Alok Aradhe observed, “We are not inclined to interfere with the...