ARBITRATION
Seven-Year Delay Violates Public Policy: Madras High Court Quashes ₹51.48 Lakh Award Against TN Housing Board
The Madras High Court has set aside an arbitral award of ₹51.48 lakhs passed in favour of the contractor, M/s. N.C.C. Ltd., on the ground of an inexplicable and excessive seven-year delay in its decision.On December 8th, 2025, Justice N. Anand Venkatesh ruled that such a delay, which is "explicit and adversely reflects on the findings," renders the award in conflict with the public policy of India and is vitiated by patent illegality, thereby attracting the provisions of Section 34 of the...
Award By Arbitrator Appointed By HC In International Commercial Arbitration Invalid Even If Parties Consent To Appointment: Madras HC
The Madras High Court bench of Justice N Anand Venkatesh has observed that appointment of arbitrator by a high court in case of an international commercial arbitration renders the award a nullity. Sections 4 and 11(6), Arbitration and Conciliation Act (“ACA”) are non -derogable and it is only the Apex Court which can appoint an arbitrator in an international commercial arbitration. Facts The present petitions have been filed under Section 34, ACA by China Datang Technologies and...
Non-Signatory, Non-Existent LLP Cannot Invoke Arbitration Protection Through Group Of Companies Doctrine: Meghalaya High Court
The Meghalaya High Court has dismissed an appeal filed by Suraksha Salvia LLP against the State Government's termination of a Public-Private Partnership (PPP) for a diagnostic centre in Shillong, ruling that a company that was not even in existence on the date of agreement execution cannot seek protection under section 9 of the Arbitration and Conciliation Act. The Division Bench comprising of Chief Justice Soumen Sen and Justice H.S. Thangkhiew, on Tuesday, upheld the Commercial Court's...
Bombay High Court Sets Aside Award Ordering Sharekhan To Refund Rs 4.87 Lakh In Brokerage
The Bombay High Court has set aside an arbitral award that had directed Sharekhan Limited, a broking firm, to refund Rs 4.87 lakh in brokerage to its client Darshini Shah. The court held that the arbitral tribunal had irrationally treated the same 2007 contract between the parties as valid for permitting trades but invalid for charging brokerage and that such a conclusion was fundamentally inconsistent with Indian contract law. A single bench of Justice Sandeep V Marne held on December 9, 2025,...
LiveLawBiz: Business Law Daily Round-Up: December 10, 2025
TAXSubway Franchisee Hiked Base Prices To Neutralise ITC Loss, Amounted To Profiteering; 18% Interest Can't Apply Retrospectively: GSTATSupplying AI-Powered IT Infra Services, Content To USA Corp By Indian Counterpart Is 'Export' Not 'Intermediary' : Gujarat High Court"₹41664 Crores ITC Fraud Via Non-Existing Entities, Fake Invoices": Centre Flags Rising GST Evasion In Rajya Sabha Separate Proceedings Under Customs Act Not Permissible Once CBLR Proceedings Are Initiated: CESTAT Kolkata Customs...
S. 29A Arbitration Act | Arbitrator's Mandate Terminates On Expiry Of Time; Substituted Arbitrator Must Resume After Extension : Supreme Court
The Supreme Court on Wednesday (December 10) held that once the statutory 18-month period for delivering an arbitral award expires, the arbitrator's mandate automatically comes to an end as per Section 29A(4) of the Arbitration and Conciliation Act, 1996, when no application for extension is made. Therefore, when an extension of time is granted by the Court after the mandate of the arbitrator is terminated, then the substitution of the arbitrator is mandatory under Section 29A(6) of the...
NAFED's 'Society Commission' Deductions From Rice Millers' Bills Contrary To Contract: Orissa High Court Upholds Refund Award
The Orissa High Court bench of Justice (Dr.) Sanjeeb K Panigrahi while dismissing an appeal under Section 37, Arbitration and Conciliation (“ACA”) observed that deductions from invoices made by NAFED under the head “society commission” were contrary to the contractual agreements entered with rice millers and the latter were entitled to reimbursement of such deducted amounts. The Court affirmed the judgment of the District Judge upholding the findings by the Sole Arbitrator who held the...
LiveLawBiz: Business Law Daily Round-Up: December 09, 2025
TAX Service Tax | No Reverse Charge Liability On Software Maintenance Consumed Abroad; Hotel Expenses Not 'Sponsorship Services': CESTAT Bangalore Foreign Markings On Gold Biscuits Not Enough To Prove Smuggling: CESTAT Kolkata Sets Aside Confiscation Staff Reimbursement, Training, And Hospital Management In Joint Venture Not Taxable Under Service Tax: CESTAT Chennai Income Tax Act | Long Term Capital Gain On Shares Cannot Be Branded Bogus Without Evidence: ITAT Mumbai Revenue-Sharing...
Supreme Court Flags Failure Of New Arbitration Bill In Providing Statutory Appeal Against Arbitral Tribunals' Termination Orders
The Supreme Court criticised the new Arbitration and Conciliation Bill for failing to address the ambiguity regarding the relief against an arbitral tribunal terminating the proceedings, noting that the new Bill made no effort to remedy this gap in the law."It is indeed very sad to note that even after these many years, procedural issues such as the one involved in the case at hand, have continued to plague the arbitration regime of India. The Department of Legal Affairs has now, once again...
Non-Signatory Which Isn't A Veritable Party Cannot Invoke Arbitration Clause : Supreme Court
The Supreme Court on Tuesday (December 9) held that a non-signatory to an arbitration agreement cannot invoke the arbitration clause against a party with whom it shares no legal relationship and where there is no indication of any intention to bind the non-signatory to the main contract. A bench of Justice J.B. Pardiwala and Justice K.V. Viswanathan heard the matter, where the Respondent, admittedly a non-signatory to the primary contract between HPCL and AGC Networks Ltd., sought to invoke the...
If Arbitral Tribunal Terminates Proceedings For Not Paying Fees, Remedy Is To Seek Recall & Then Invoke S.14(2) : Supreme Court
The Supreme Court has held that an arbitral tribunal is legally empowered to terminate proceedings under Section 38(2) of the Arbitration and Conciliation Act, 1996 when a party fails to pay its share of the arbitrator's fees.Once such a termination occurs, the remedy available to the party is to seek the recall of the order before the Tribunal itself. If the recall application is dismissed, then the party has to approach the Court under Section 14(2).A bench of Justice JB Pardiwala and Justice...
LiveLawBiz: Business Law Daily Round-Up: December 08, 2025
TAX Revenue Cannot Adjudicate Decade-Old SCNs On NPV Sales Tax Retention: Bombay High Court KeralaHigh Court Upholds Over ₹15 Lakh Motor Vehicle Tax Demand OnPuducherry-Registered Car Found Used In Kerala Customs| Bills Of Entry Cannot Be Reassessed After Clearance Merely To Claim Refund Based On Later SC Judgment: CESTAT Mumbai Sales Tax Discharged Through NPV Under State Incentive Scheme Cannot Be Added Back To Excise Transaction Value: CESTAT Mumbai ED Has Seized ₹4,189.89 Crore In...