ARBITRATION
Calcutta High Court Upholds ₹24.30 Lakh Award To Contractor After Union Failed To Provide Site
On 5 October, the Port Blair Circuit Bench of the Calcutta High Court upheld an arbitral award of Rs. 24.30 lakh in favour of K.P. Trading and Company, holding that the award of loss of profit was supported by the material on record and did not warrant interference. Justices Madhuresh Prasad and Prasenjit Biswas dismissed the Union of India's appeal under Section 37 of the Arbitration and Conciliation Act, 1996, against the 15 September 2017 arbitral award and the Additional District Judge's...
SARFAESI Possession Of Property Doesn't Bar Redevelopment If Security Is Protected: Bombay High Court
The Bombay High Court on 7 September held that a secured creditor's possession of mortgaged property under the SARFAESI Act does not, by itself, prevent redevelopment of the property, provided the creditor's security remains protected. Justice Amit Borkar permitted redevelopment of flats in Virani Towers, over which the State Bank of India (SBI) had taken possession under SARFAESI proceedings, while directing that the Bank's security should not be diluted or extinguished. The Bench observed: ...
Partner's Claim For Contribution From Co-Partners Arbitrable Despite Guarantor Status: Delhi High Court
On 5 October, the Delhi High Court held that a partner's claim against co-partners for money paid towards a firm's liability remains arbitrable even if the partner made the payment as a guarantor. It also clarified that the nature of the claim, and not merely the capacity in which the bank proceeded against the partner, determines whether it is covered by the arbitration agreement. A Division Bench comprising Justices Anil Kshetarpal and Bharat Parashar restored an arbitral award in favour of...
Delhi High Court Asks RBI To Caution Banks After Axis Bank's Unilaterally Appointed Arbitrator Handles 4,155 Cases
The Delhi High Court has directed the Reserve Bank of India to caution banks against unilateral appointments of arbitrators and consider remedial measures or guidance for banks and financial institutions on the issue.The direction came after the Court was informed that an arbitrator appointed by Axis Bank had handled 4,155 arbitrations concerning the Bank over four to five years. The Bank also informed the Court that around 76,000 awards had been passed pan-India by such sole arbitrators...
Karnataka High Court Upholds Forfeiture Of Developer's Advance After 7-Year JDA Delay
The Karnataka High Court on 22 September upheld the forfeiture of a developer's advance under an arbitral award after the developer failed to implement a Joint Development Agreement (JDA) for seven years. A Division Bench of Justices D.K. Singh and H. Shanthi Bhushan dismissed the developers' appeal and allowed the landowner's appeal concerning a Bengaluru-based multistoried housing project, restoring the forfeiture portion of the arbitral award which the Commercial Court had set aside. The...
Writ Court Cannot Appoint Arbitrator Where Contract Mandates Statutory Mechanism: Patna High Court
The Patna High Court on 29 September held that a writ court cannot appoint an arbitrator under the Arbitration and Conciliation Act, 1996 when the parties' agreement provides for resolution of disputes through a statutory arbitration mechanism. A Division Bench comprising Justices Sudhir Singh and Rajesh Kumar Verma set aside the Single Judge's order appointing a sole arbitrator in a dispute between Bihar's Mines and Geology Department and Mahadev Enclave Pvt. Ltd., noting that Clause 9 of the...
LiveLawBiz Arbitration Cases Quarterly Digest: July- September 2026
Supreme CourtSupreme Court Asks CJI To Consider Larger Bench To Examine Validity Of Pre-Deposit Clauses In Arbitration AgreementsCase Title : SANTOSH ASSOCIATE PRIVATE LIMITED VERSUS HARYANA STATE INDUSTRIAL AND INFRASTRUCTURE DEVELOPMENT CORPORATION LTD.Case Number : SLP (C) No. 31245 of 2025Citation: 2026 LLBiz SC 277The Supreme Court on Monday requested the Chief Justice of India to consider whether a larger Bench should examine the validity of contractual clauses requiring a party to...
Madras High Court Refuses To Restrain Worldwide Release Of Hindi 'Drishyam 3,' Finds Remake Rights Disputed
The Madras High Court has recently refused to restrain the worldwide release and exploitation of the Hindi remake of Malayalam film Drishyam 3, starring Ajay Devgn. It held that Rajkumar Theatres had not clearly established that it continued to hold an exclusive or joint copyright in the Hindi remake rights.Justice K. Govindarajan Thilakavadi dismissed Rajkumar Theatres' application on October 1, 2026. The company had sought interim protection against the film's release pending...
NHAI Cannot Take Technical Ground Against Landowners, Having Knowledge Of Arbitration Proceedings: Madras High Court
The Madras High Court has restored arbitral awards enhancing compensation for land acquired for a national highway, holding that the National Highways Authority of India (NHAI) could not rely on a technical objection over notice despite having knowledge of the arbitration proceedings. The court questioned why NHAI had remained a “lame duck” despite knowing about the proceedings and held that a public authority could not take such a technical ground to deny landowners their rights under Article...
Interim Arbitration Relief Plea Cannot Be Rejected At Threshold Merely Because It Covers Two Agreements: Rajasthan High Court
The Rajasthan High Court has held that an application seeking interim relief in aid of arbitration cannot be rejected at the threshold under Order VII Rule 11 merely on an objection that it covers two separate agreements containing separate arbitration clauses.Justice Anand Sharma observed, “The question whether two agreements are wholly independent or are interrelated is not necessarily capable of determination merely by looking at the title of the agreements or the fact that they contain...
Supreme Court Appoints Former SC Judge Justice K.M. Joseph As Arbitrator In SmartCity Kochi Lease Dispute
The Supreme Court has appointed former Supreme Court Judge Justice K.M. Joseph as Arbitrator to resolve the monetary disputes between Smart City Kochi Infrastructure Pvt Ltd. and Musthafa and Almana International Consultants arising from a sub lease of premises in the SmartCity Special Economic Zone (SEZ). A Division Bench of Justices J.B. Pardiwala and K. Vinod Chandran while asking the parties to approach Justice Joseph within two weeks with a copy of the order, directed that the...
MSCS Act Arbitration Not Invalid For Absence Of Separate Notice Under Arbitration Act: Karnataka High Court
The Karnataka High Court has held that arbitration under the Multi-State Co-operative Societies Act, 2002 cannot be treated as invalid merely because no separate notice was issued under Section 21 of the Arbitration and Conciliation Act, 1996.Justice Sachin Shankar Magadum observed, “The absence of a separate notice under Section 21, in the circumstances pleaded in these petitions, does not by itself render the appointment of the learned Arbitrator under Section 84 of the MSCS Act invalid, nor...