ARBITRATION
Supreme Court Refers Kinetic Green-Saera Exclusivity Dispute Over Vehicle Manufacturing To Arbitration
The Supreme Court on Thursday referred to arbitration as a dispute between Kinetic Green Energy and Power Solutions Limited and Saera Electric Auto Limited over contractual exclusivity and non-compete obligations.A Division Bench comprising Justice Aravind Kumar and Justice Vipul M. Pancholi appointed former Supreme Court judge Justice R.V. Raveendran as the sole arbitrator.“Having heard the learned counsels appearing for the parties, we are of the opinion that the constitution of an Arbitral...
Appointing Arbitrator Unilaterally Does Not Amount To Waiving Ineligibility: Delhi High Court
The Delhi High Court has held that a party's unilateral appointment of an arbitrator cannot by itself amount to an express waiver of the arbitrator's statutory ineligibility under Section 12(5) of the Arbitration and Conciliation Act, 1996.A Division Bench of Justice Anil Kshetarpal and Justice Vimal Kumar Yadav upheld the setting aside of an arbitral award partly in favour of Ahluwalia Contracts (India) Limited (ACIL), despite the Airports Authority of India (AAI) having appointed the...
Pending Arbitration Does Not Bar Wilful Defaulter Proceedings Against Borrower: Calcutta High Court
On 23 September, the Calcutta High Court held that the pendency of arbitration proceedings cannot prevent a lender from issuing a show-cause notice to declare a borrower a wilful defaulter. Justice Krishna Rao dismissed Kitply Industries' writ petition challenging SREI Equipment Finance Ltd.'s (SEFL) show-cause notice alleging that it had disposed of assets securing its credit facility without the lender's approval. The Bench observed: “Pendency of the arbitration proceeding could not debar...
Supreme Court Allows Forensic Audit Into Alleged Dissipation Of Fortis Shares In Daiichi Sankyo Arbitration Case
The Supreme Court on Friday refused to interfere with the Delhi High Court's order directing a comprehensive forensic audit into the alleged dissipation of Fortis Healthcare Ltd (FHL) shares and other assets.The audit concerns former promoters Malvinder Mohan Singh and Shivinder Mohan Singh, their downstream entities, Fortis officials, and 17 banks and financial institutions.The proceedings arise from Daiichi Sankyo's efforts to enforce its ₹2,562 crore arbitral award against the Singh...
Appeal Against Rejection Of Interim Relief Cannot Be Remitted To Arbitral Tribunal: Supreme Court
The Supreme Court has held that a High Court cannot transfer an appeal against rejection of an interim-relief application under the Arbitration and Conciliation Act to an arbitral tribunal and direct the tribunal to treat it as an application for interim measures.A bench of Justice Aravind Kumar and Justice Prasanna B. Varale set aside a Bombay High Court direction to that extent in a dispute between the Union of India and Hariom Projects Pvt. Ltd."The appellate jurisdiction under Section 37 is...
Gujarat High Court Says Casual Award Challenges Burden Courts, Imposes ₹3 Lakh Costs On Housing Board
The Gujarat High Court on 18 September held that courts can impose costs to deter casual challenges to arbitral awards, observing that frivolous applications under Sections 34 and 37 of the Arbitration and Conciliation Act, 1996 burden courts with unnecessary litigation. A Division Bench of Chief Justice Sunita Agarwal and Justice D.N. Ray dismissed the Gujarat Housing Board's challenge to a Rs. 3.97 crore arbitral award in favour of Cube Construction Engineering Ltd. and imposed Rs. 3 lakh...
Bombay High Court Restrains Parle Agro's Franchisee From Selling SURE Water Competing With BAILLEY
The Bombay High Court has granted interim protection to Parle Agro Private Limited in its arbitration dispute with its franchisee Udayak Agro Products Pvt. Ltd. and Udayak's connected entity, K.L. Beverages LLP, over the manufacture and sale of competing packaged drinking water. Justice Amit Borkar found a prima facie case that the manufacture of SURE water by K.L. Beverages was covered by the indirect competition restrictions in Parle Agro's franchise agreement with Udayak. Under the...
Challenge To Arbitral Award Can Be Heard By District Court Where No Commercial Court Exists: Supreme Court
The Supreme Court has ruled that a petition challenging an arbitral award under Section 34 of the Arbitration and Conciliation Act can be filed before a Commercial Court. Where no Commercial Court has been established, it can be filed before a District Court within the territorial jurisdiction of the concerned High Court. This is unless the parties have agreed otherwise or a specific arbitral seat has been determined.A bench of Justice Sanjay Kumar and Justice Sanjeev Sachdeva made the...
Writ Against Order U/S 37 Arbitration Act Not Barred By Second Appeal Restriction: Orissa High Court
The Orissa High Court on 21 September held that a writ petition under Articles 226 and 227 of the Constitution can be maintained against an order passed by a District Judge under Section 37 of the Arbitration and Conciliation Act, 1996, despite Section 37(3) barring a second appeal. Justice B.P. Routray rejected the preliminary objection to the maintainability of the writ petitions filed by the state and other, holding that the High Court's constitutional jurisdiction does not constitute a...
Arbitral Tribunal Erred In Granting Pre-Reference Interest Despite Contractual Bar: Supreme Court
The Supreme Court has set aside a High Court order restoring pre-reference interest to a contractor, holding that the contract barred the grant of such interest.The arbitral tribunal had awarded ₹3.30 crore on four claims, along with 12% annual pre-reference interest. The Supreme Court held that the tribunal exceeded the bounds of its jurisdiction by awarding the interest despite the contractual bar. A Bench of Justice Pamidighantam Sri Narasimha and Justice Alok Aradhe allowed North Eastern...
Foreign Arbitral Tribunal Interim Relief May Fail In India Without Direct Enforcement: Bombay High Court
On Tuesday, 22 September, the Bombay High Court held that interim relief granted by a foreign arbitral tribunal may be rendered ineffective in India where there is no direct mechanism to enforce such an order. A Division Bench of Justices A.S. Gadkari and Kamal Khata allowed an appeal by Singapore-based Sunfield Global Pte Limited against Liberty Investments Private Limited, set aside a Single Judge's order refusing interim protection and directed Liberty to secure Sunfield's admitted USD...
Visakhapatnam Courts Have Jurisdiction Over RINL Arbitration Challenge Despite Delhi Seat: Andhra Pradesh High Court
The Andhra Pradesh High Court has held that the courts at Visakhapatnam have jurisdiction to hear Rashtriya Ispat Nigam Ltd.'s challenge to an arbitral award, despite the arbitral tribunal later recording New Delhi as the seat of arbitration.Justice Balaji Medamalli observed that the parties had agreed to the exclusive jurisdiction of the Visakhapatnam courts while separately providing for different venues for conducting the arbitration.“In the instant case, Article 18 of the agreement clearly...