Party Fails To Challenge Arbitral Award U/s 34 A&C Cannot Approach High Court Under Article 226: Delhi High Court Dismisses Writ Petition

The Delhi High Court single bench of Justice Subramonium Prasad held that Article 226 of the Constitution of India is an extraordinary remedy and cannot be invoked where a party has failed to invoke other remedies available to it under law. It held that if a party fails to challenge the arbitration award under Section 34 of the Arbitration and Conciliation Act, 1996, cannot approach the High Court by filing a Writ Petition under Article 226 of the Constitution of India.Brief Facts:The Petitioner...

Court May Refuse To Appoint Arbitral Tribunal If S.11(6) Petition Is Barred By Limitation Or Claim Is Ex-Facie Time Barred : Supreme Court

In a recent ruling, the Supreme Court held that the Limitation Act, 1963 is applicable to proceedings for appointment of arbitrator under Section 11(6) of the Arbitration and Conciliation Act, 1996 ("A&C Act"), and a Court may refuse to make a reference if the claims, on the date of commencement of arbitration proceedings, are ex-facie barred."...there is no doubt as to the applicability of the Limitation Act, 1963 to arbitration proceedings in general and that of Article 137 of the...

MSME Facilitation Council Can't Arbitrate Matters Pertaining To Individual Service Providers Outside The Scope Of MSME Act: Delhi High Court

The Delhi High Court single bench of Justice Prateek Jalan held that the MSME Facilitation Council does not have the jurisdiction to arbitrate matters pertaining to individual service providers who do not fall under the definition of 'supplier' under the MSME Act. The same would be violative of Section 34 of the Arbitration and Conciliation Act, 1996. Brief Facts:The matter pertained to an agreement between the parties which outlined the provision of toll management services by the...

Even If Arbitral Award Set Aside For Non-Compliance With Section 12, Parties Can File Fresh Section 11 Application For Arbitrator Appointment: Delhi High Court

The Delhi High Court single bench of Justice Dinesh Kumar Sharma held that mere invalidation or unenforceability of the arbitrator appointment process does not render the entire arbitration clause void. The bench held that even if an arbitration award is set aside due to unilateral appointment and non-compliance with Section 12 of the Arbitration Act, fundamental agreement between the parties to submit their disputes to arbitration remains intact. Therefore, the parties can file a fresh...

S.29A Arbitration Act | Who Has Power To Hear Time Extension Application When Arbitrator Appointed By SC/HC/Parties? Allahabad HC Refers Question To Larger Bench

The Allahabad High Court has referred the question whether application under Section 29A of the Arbitration and Conciliation Act, 1996 for time extension can only be heard by the Supreme Court or the High Court where the appointment of such arbitrator has been made by the Supreme Court or the High Court, as the case may be.Further, the Court has raised a query regarding the powers of the 'Court' as defined under Section 2(1)(e) of the Act to adjudicate on an application under Section 29A of the...

Application Under Section 29(A) A&C Act Doesn't Constitute Express Waiver In Writing U/s 12(5) To Challenge Arbitrator's Ineligibility: Delhi High Court

The Delhi High Court single bench of Justice Manoj Kumar Ohri held that filing of the Section 29(A) application by a party did not amount to a waiver of its right to challenge the arbitrator's ineligibility under Section 12(5) of the Arbitration and Conciliation Act, 1996. The bench held that filing an application under Section 29A of the Arbitration Act for an extension of the mandate did not amount to an express waiver in writing under Section 12(5). Brief Facts: The Petitioner...

Party Providing Wrong Address During Proceedings Cannot Argue Incorrect Arbitration Notice U/s 21 A&C: Delhi High Court

The Delhi High Court single bench of Justice Rekha Palli held that when a party provides its incorrect address in proceedings cannot be permitted to urge that the invocation notice of arbitration under Section 21 of the Arbitration and Conciliation Act, 1996 was not served at the correct address. Brief Facts: The Petitioner approached the Delhi High Court (“High Court”) under Section 11 of the Arbitration and Conciliation Act, 1996 (“Arbitration Act”), seeking the appointment of a...

Court Cannot Determine Admissibility, Relevancy, Materiality, And Weight Of Any Evidence Under Section 27 of A&C: Delhi High Court

The Delhi High Court single bench of Justice Sachin Datta held that the court under Section 27 of the Arbitration and Conciliation Act, 1996 cannot determine the admissibility, relevancy, materiality, and weight of any evidence, as doing so would amount to impermissible interference with the Tribunal's proceedings. Brief Facts: Steel Authority Of India Ltd. (“Petitioner”) chartered the vessel "MV PEACE GEM" for transporting cargo from the port of DTA Terminal New Port News, USA, to...

Civil Court And Commercial Division Of High Court Has Concurrent Jurisdiction To Entertain Section 9 Petition If Dispute Amount Is B/w Rs. 10 Lakh & Rs. 1 Crore: Calcutta High Court

The Calcutta High Court single bench of Justice Moushumi Bhattacharya held that both Principal Civil Court and Commercial Division of the High Court has the jurisdiction to entertain Section 9 petition if the claim amount is between Rs. 10 lakhs to Rs. 1 crore. It rejected the contention that the City Civil Court doesn't have jurisdiction to receive or try the first application under Section 9. Brief Facts: The Petitioner filed a petition under Section 9 of The Arbitration and Conciliation...

Court of Arbitration For Sport Upholds International Olympic Committee's Decision To Suspend Russian Olympic Committee

The Court of Arbitration for Sport (CAS) has dismissed Russia's bid to reverse the International Olympic Committee's (IOC) decision to suspend its official status. The IOC took this action after Russia attempted to absorb Ukrainian sports organizations following the 2022 invasion of Ukraine. Established in 1984, the CAS is a global organization dedicated to resolving sports-related disputes through arbitration. CAS is headquartered in Lausanne, Switzerland, and operates courts in New York...

GCC Clause For Appointment OF Three Gazetted Railway Officers Panel For Arbitration Violates Section 12(5) A&C: Calcutta High Court

The Calcutta High Court single bench of Justice Moushumi Bhattacharya held that the clause in General Conditions of Contract stipulating appointment of a panel of three gazetted railway officers for arbitration violated Section 12(5) of the Arbitration and Conciliation Act, 1996, read with the Fifth and Seventh Schedules of the Act. Brief Facts: The matter revolved around a Memorandum of Understanding (MoU) executed on 4th August 2018,...

Arbitration Weekly Round Up: 19th February To 25th February 2024

Supreme Court Whether Courts Can Modify Arbitral Award U/S 34 or 37 of Arbitration Act? Supreme Court Refers To Larger Bench The Supreme Court has referred to the larger bench the question of whether the courts have the power to modify the arbitral award under Sections 34 or 37 of the Arbitration and Conciliation Act, 1996. “Whether or not the Courts in exercise of power under sections 34 or 37 of the Arbitration and Conciliation Act, 1996 are empowered to modify an arbitral award...