A Party Cannot Be Allowed To Take Advantage Of Inartistic Drafting Of Arbitration Clause As Long As The Intention To Arbitrate Is Clear: Bombay High Court

The High Court of Bombay has held that a party cannot be allowed to take advantage of inartistic or poor drafting of an arbitration clause as long as the clause contains the necessary ingredients and the intention to arbitrate is clear. The bench of Justice Manish Pitale also held that a Court exercising power under Section 9 of the A&C Act would be within its power to scrutinize and decide as to whether the arbitration clause is valid in law. The Court also held that while ...

Designation Of Venue Of Arbitration Tantamount To Seat Of Arbitration In Absence Of A Significant Contrary Indicia: Delhi High Court Reiterates

The High Court of Delhi has held that the venue of arbitration would actually be the seat of arbitration when the agreement does not contain any contrary indicia. It held that clause proving for venue of arbitration would have a superseding effect over a clause providing for exclusive jurisdiction on any other Court if the parties have expressly made the latter subject to the former. The bench of Justice Yogesh Khanna held that if the agreement contains a venue clause as well as an...

Gujarat High Court Invalidates Arbitral Awards Due To Unilateral Arbitrator Appointment By NBFCs

In a pivotal ruling, the Gujarat High Court has quashed and nullified three arbitral awards where non-banking financial companies (NBFCs) unilaterally appointed sole arbitrators. The court's decision was in line with the Apex Court's stance on Section 12(5) of the Arbitration and Conciliation Act, 1996.Justice Bhargav D Karia observed, “Thus, the Hon’ble Apex Court has held that a person having an interest in a dispute or in the outcome thereof is ineligible not only to act as an arbitrator but...

Arbitration Weekly Round-Up: 16th October – 22nd October

Supreme Court Arbitrator Won't Become Ineligible By Unilaterally Revising Fee; Mandate Can't Be Terminated On Grounds Not Mentioned In Schedule : Supreme Court Case Title: M/S CHENNAI METRO RAIL LIMITED vs. M/S TRANSTONNELSTROY AFCONS JV, C.A. No. 4591/2023 Citation : 2023 LiveLaw (SC) 909 In a notable judgment, the Supreme Court has held that unilateral revision of fee by an arbitral tribunal, though not permissible, will not terminate its mandate on the ground of...

English Translated Copy Certified By A Sworn Or Official Translator Is Sufficient Compliance Of Section 47(2) Of The A&C Act: J&K High Court

The High Court of Jammu & Kashmir High Court has held that filing of an English translated copy certified by an official or sworn translator satisfies the requirement of Section 47(2) of the A&C Act which provides that if an award is in a foreign language, a translated copy of the award is to be filed for the purpose of the enforcement of the foreign award and the same has to be certified by the Consular or Diplomatic agent of the award holder’s country. The bench of Justice...

Arbitration | Awarding Claim For Loss Of Profit Without Substantial Evidence Is In Conflict With Public Policy Of India: Supreme Court

Recently, the Supreme Court, while rendering an arbitral award as patently illegal and being in conflict with the “public policy of India”, held that a claim for damages cannot as a matter of course result in an arbitral award without proof of the claimant having suffered injury. The present decision emphasised the importance of substantial evidence in awarding claims for loss of profit.“A claim for damages, whether general or special, cannot as a matter of course result in an award without...

Absence Of Arbitration Clause In The Main Agreement Is Immaterial When It Specifically Incorporates Another Agreement Containing Arbitration Clause: Calcutta High Court

The High Court of Calcutta has held that absence of arbitration clause in the main agreement is immaterial when it specifically incorporates another agreement containing arbitration clause. The bench of Justice Moushumi Bhattacharya held that Section 7(5) of the A&C Act allows incorporation of the arbitration agreement by reference and a case wherein the main agreement specifically incorporates the earlier agreements containing arbitration clause, the situation would squarely be ...

Award Holder Has The Choice To File An Execution Petition At The Place Of His Choice: Allahabad High Court Reiterates

The Allahabad High Court has held that it is the choice of the award holder to file an execution petition at the place of its choice and it need not necessarily approach the Court where the award was passed. The bench of Justice Pankaj Bhatia also held that merely because Section 16 of the Commercial Courts Act which provides for amendment to CPC does not include Order 21 within the amended provisions, it would not mean that the Commercial Court would not have the inherent jurisdiction...

If One Letter With The Necessary Stamp Is Part Of The Correspondence Forming The Contract, The Entire Contract Is Considered Duly Stamped: Calcutta High Court

The High Court of Calcutta has held that if one letter with the necessary stamp is part of the correspondence forming the contract, the entire contract is deemed duly stamped. The bench of Justice Moushumi Bhattacharya held that where a contract or agreement of any kind is effected by correspondence consisting of two or more letters and if any one of the letters is properly stamped the contract or agreement shall be deemed to be duly stamped in view of proviso (c) to Section 35 of the...

Arbitrator Won't Become Ineligible By Unilaterally Revising Fee; Mandate Can't Be Terminated On Grounds Not Mentioned In Schedule : Supreme Court

In a notable judgment, the Supreme Court has held that unilateral revision of fee by an arbitral tribunal, though not permissible, will not terminate its mandate on the ground of ineligibility as per Section 12 of the Arbitration and Conciliation Act 1996.Although the Supreme Court has held in Oil and Natural Gas Corporation Ltd. vs Afcons Gunanusa JV 2022 LiveLaw (SC) 723 that the arbitrators should revise the fee only in consultation with the parties and should not do it unilaterally, a...

Award Under MSMED, Can’t Challenge In Writ Petition For Not Granting Adjournment Sought: Calcutta High Court

The High Court of Calcutta has held that an arbitration award passed under MSMED Act cannot be challenged in a writ petition merely on the ground that the petitioner’s request for adjournment was refused by the arbitrator. The bench of Sabyasachi Bhattacharyya held that a party aggrieved by an award passed under MSMED Act has to challenge it under Section 34 of the A&C Act r/w Section 19 of the MSMED Act and the remedy of writ petition to challenge such award would not be available...

Arbitration Award Execution , Can File Anywhere, Bar Under Section 42 Not Applicable: Allahabad High Court Reiterates

The High Court of Allahabad has held that a petition for the execution of the arbitral award can be enforced anywhere in the country, where the assets of the award debtor are located. The bench of Justice Pankaj Bhatia held that Section 42 of the A&C Act which bars any petition in any Court other than the Court where the first petition in relation to arbitration agreement was filed does not apply to petitions for the enforcement of the arbitration award. It relied on the judgment...