Loss Of Goodwill Is Difficult To Prove, Cannot Be Proved With Mathematical Precision: Delhi High Court

The High Court of Delhi has held that it would be difficult for any party claiming loss of goodwill to prove or establish the same with any mathematical precision. The bench of Justices Vibhu Bakhru and Justice Amit Mahajan upheld an arbitral award wherein the arbitrator allowed a party to retain certain amount as penalty, being the genuine pre-estimate of the loss of goodwill without any proof of quantum of actual loss suffered by it. Facts In 1997, the appellants (Metal ...

Telangana High Court Sets Aside An Order Of The District Court Under Section 34 Of The A&C Act For Modifying An Arbitral Award

The High Court of Telangana has set aside an order of the District Court passed under Section 34 of the A&C Act by which the Ld. Additional Chief Judge, City Civil Court, Hyderabad had modified an arbitral award. The bench of Justice M.G. Priyadarsini held that the Ld. Court committed an irregularity in modifying the amount of compensation awarded by the arbitrator. It held that the Court went beyond the scope of Section 34. Facts The parties entered into an agreement...

MSMED Act Does Not Prevent Interim Relief Under Section 9 Of The A&C Act, Before Approaching Facilitation Council : Calcutta High Court

The Calcutta High Court has held that MSMED Act does not prevent a party from seeking an interim relief under Section 9 of the A&C Act anytime before approaching the Facilitation Council. The bench of Justice Sabyasachi Bhattacharyya held that the reference of dispute to facilitation council cannot be refused merely on the ground that before making such a reference under Section 18 of the MSMED Act, the seller had approached the Court under Section 9 of the A&C Act for certain...

A Party Cannot Contest An Arbitral Award For Exceeding The Reference Scope If It Failed To Object When The Alleged Breach Initially Occurred: Delhi High Court

The High Court of Delhi has held that a party cannot challenge an arbitral award on the ground that the tribunal went beyond the scope of reference when it admittedly did not raise any objection when the alleged breach was first committed by the tribunal. The bench of Justice Dharmesh Sharma held that the tribunal’s decision to include certain invoices in the claim cannot be challenged under Section 34 as being beyond the reference to arbitration when no such objection was raised...

Writ Petition Not Maintainable, Exists Arbitration Clause To Look Into Disputed Facts: Calcutta High Court

The High Court of Calcutta has held that a writ petition would not be maintainable due to an alternative remedy in the form of arbitration when the petition involves disputed questions of facts that requires detailed assessment. The bench of Justice Sabyasachi Bhattacharya held that availability of alternative remedy is not always a bar to the maintainability of the writ petition, however, it would be beyond the domain of the writ court to embark upon a detailed assessment of material...

Arbitration Clause Contained In The Tax Invoice Is Binding When The Terms And Conditions Of The Invoice Were Accepted And Acted Upon: Calcutta High Court

The High Court of Calcutta has held that an arbitration clause contained in a tax invoice would be binding on the parties when the terms and conditions contained therein were accepted and acted upon by the parties. The bench of Justice Shekhar B. Saraf held that when a party accepts an invoice incorporating a clearly visible arbitration clause and subsequently acts in accordance with it, the said party cannot later argue the absence of a valid arbitration clause. It also laid down...

Exclusive Jurisdiction Clause Takes Precedence Over Generic Jurisdiction Clause In Another Agreement Between The Parties: Calcutta High Court

The High Court of Calcutta has held that an exclusive jurisdiction clause within the arbitration agreement would override a generic jurisdiction clause contained in another agreement between the parties. The bench of Justice Shekhar B. Saraf held that the moment an arbitration clause confers exclusive jurisdiction on the Court at a particular place or the seat of arbitration is declared, it would mean that all other Courts would not have the jurisdiction to entertain any petition...

Arbitration Weekly Round-Up: 13th November To 19th November

Bombay High Court Amount Of Arbitration Award Received By Retiring Partner For Relinquishing Claim In The Firm Is Not Taxable: Bombay High Court Case Title: Ramona Pinto v. Deputy Commissioner of Income Tax, Income Tax Appeal No. 2610 of 2018 The High Court of Bombay has held that an amount of arbitration award received by a retiring partner for relinquishing its claim in the firm is not a taxable income. The bench of Justices K.R. Shriram and Dr. Neela Gokhale held that...

Arbitration | Delhi High Court Denies Interim Relief To Steel Manufacturer-Arcelormittal In Section 9 Petition Against GAIL, Says Prima Facie Case Not Made Out

The Delhi High Court recently denied urgent interim relief to leading steel manufacturer-ArcelorMittal Nippon Steel (petitioner) in a claim against GAIL India Ltd., observing that the scope of enquiry u/s 9 of A&C Act was limited to prima facie examination of the issue, which was not established in the petitioner’s favour.The petitioner had approached the court seeking stay over a Notice issued by GAIL, statedly to terminate the LNG Sale and Purchase Agreement (LSPA) entered by the two. It...

Court Won’t Insist For Bank Guarantee If Enforcement Of Award Is Not Frustrated In Section 9 Petition: Delhi High Court

The High Court of Delhi has held that the Court exercising powers under Section 9 of the A&C Act would not order furnishing of Bank Guarantee (BG) to secure the claims of a party pending the arbitration proceedings, unless it shown that the order party is alienating its assets or acting in a manner that would frustrate the enforcement of the Arbitral Award.The bench of Justices Vibhu Bakhru and Amit Mahajan held that an order under Section 9 directing furnishing bank guarantee to secure the...

Amount Of Arbitration Award Received By Retiring Partner For Relinquishing Claim In The Firm Is Not Taxable: Bombay High Court

The High Court of Bombay has held that an amount of arbitration award received by a retiring partner for relinquishing its claim in the firm is not a taxable income.The bench of Justices K.R. Shriram and Dr. Neela Gokhale held that the amount received by a partner under a consent arbitration award for relinquishing its stake in the firm cannot be treated as an ‘income from other sources’ within the meaning of Section 56(1) of the Income Tax Act, 1961 to bring it within the rubric of taxable...

Arbitration Cases Weekly Round-Up: 6th November - 12th November

Supreme CourtCourt Can Examine If Arbitration Clause Is Arbitrary & Violates Article 14 While Considering S.11(6) Application: Supreme CourtCase Title: Lombardi Engineering Ltd v. State of UttarakhandCitation: 2023 LiveLaw (SC) 958In a significant judgment, the Supreme Court held that a clause in an arbitration agreement which is not in consonance with the Constitution cannot be enforced. The Court further held that it can examine if the arbitration clauses are manifestly arbitrary and...