Supplying Copies Of Award Certified By MSME Council To The Parties, Not Fair: Himachal Pradesh High Court

The Himachal Pradesh High Court has ruled that it is the bounden duty of the Arbitrator appointed by the Facilitation Council under the Micro, Small and Medium Enterprises Development Act, 2006 (MSMED Act) to issue signed copies of the arbitral award to the parties irrespective of the fact whether the parties have contested the proceedings or were proceeded ex-parte. The court has deprecated the practice of the Facilitation Council of supplying a copy of the award certified by the Council itself...

Arbitration Cases Weekly Round- Up: 11 June To 17 June 2023

High Courts:Allahabad High Court:Facilitation Council Which Was The Conciliator Under MSMED Act, Can Arbitrate The Dispute; Bar Contained In S. 80 Of Arbitration Act Not Applicable: Allahabad High CourtCase Title: Bata India Limited & Anr. vs U.P. State Micro and Small Enterprise Facilitation Council & Anr.The Allahabad High Court has ruled that the discretion given to Facilitation Council under Section 18(3) of the Micro, Small and Medium Enterprises Development Act, 2006 (MSMED Act) in...

Orders Of Arbitral Tribunal Not Signed By All Arbitrators And Absence Of An Arbitrator During Certain Proceedings, Cannot Be A Ground To Set Aside Award: Delhi High Court

The Delhi High Court has reiterated that procedural irregularity cannot be a ground to set aside the Arbitral Award unless such irregularity goes to the root of the matter and shocks the conscience of the Court, thus making the Award illegal.The bench of Justice Chandra Dhari Singh made the observation while dismissing a petition filed under Section 34 of the Arbitration and Conciliation Act, 1996 (A&C Act), challenging the majority Arbitral Award passed against the petitioner, MMTC Ltd.The...

Union Government Constitutes Expert Committee For Reforms In Arbitration And Conciliation Act

The Ministry of Law & Justice has constituted a sixteen-member expert committee headed by Dr. T.K. Vishwanathan, Former Secretary of the Department of Legal Affairs, for examining the working of arbitration law in India and recommending reforms in the Arbitration and Conciliation Act, 1996. The committee is expected to submit its recommendations within 30 days from today. The step is being taken to limit the requirement for parties to seek judicial intervention by approaching courtThe...

Facilitation Council Which Was The Conciliator Under MSMED Act, Can Arbitrate The Dispute; Bar Contained In S. 80 Of Arbitration Act Not Applicable: Allahabad High Court

The Allahabad High Court has ruled that the discretion given to Facilitation Council under Section 18(3) of the Micro, Small and Medium Enterprises Development Act, 2006 (MSMED Act) in respect of selection of forum for arbitration between the parties, is absolute and has overriding effect over any other law. In exercise of the said discretion, the provisions of the Arbitration and Conciliation Act, 1996 (A&C Act), including the prohibition contained in Section 80, will have no application,...

Arbitration: Application For Amendment Of Statement Of Claims Can Be Opposed On All Available Grounds, Including Ground Of Delay: Bombay High Court

The Bombay High Court has ruled that the opposite party is entitled to oppose the application for amendment of Statement of Claims on all available grounds. The bench of Justice Manish Pitale rejected the contention that under Section 23(3) of the Arbitration and Conciliation Act, 1996 (A&C Act), a party opposing the amendment application can oppose the same only on the ground of delay in making the amendment.The court remarked that Section 23(3) uses the words ‘having regard to the delay in...

Arbitration Cases Weekly Round-Up: 4 June To 10 June 2023

Calcutta High Court:Clause Making Arbitration An Option For Resolution Of Dispute Is Not A Valid Arbitration Agreement: Calcutta High CourtCase Title: Blue Star Limited vs Rahul SarafThe High Court of Calcutta has held that a clause in an agreement that merely provides for a possibility of arbitration is not a binding arbitration agreement. The bench of Justice Shekhar B. Saraf held that a clause which provides for resolution of dispute either by way of litigation or arbitration cannot be...

Gujarat High Court Deprecates And Cautions Arbitrator Morris Samuel Christian's Conduct, Warns Against Impersonation And Arbitrary Proceedings; Allows Petition By GMDC Ltd

The Gujarat High Court recently allowed the writ petition filed by Gujarat Mineral Development Corporation Limited praying for quashing and setting aside the mandate, constitution and authority of Morris Samuel Christian (respondent no.1) in relation to an Arbitration Case, with a further request to quash and set aside the ‘Final Awarding’ passed by the respondent. The bench of Justice Sangeeta K Vishen while allowing the petition observed:“the conduct on the part of the respondent no.1, is...

Clause Making Arbitration An Option For Resolution Of Dispute Is Not A Valid Arbitration Agreement: Calcutta High Court

The High Court of Calcutta has held that a clause in an agreement that merely provides for a possibility of arbitration is not a binding arbitration agreement. The bench of Justice Shekhar B. Saraf held that a clause which provides for resolution of dispute either by way of litigation or arbitration cannot be held to be a binding arbitration agreement as the clause makes arbitration a possibility which may unravel itself, if and only if the parties choose to opt for it, post occurrence of...

Venue Would Not Be The Seat Of Arbitration When The Agreement Confers Exclusive Jurisdiction On The Courts At A Different Place: Calcutta High Court

The High Court of Calcutta has held that the venue would not become the seat of the arbitration when the agreement confers exclusive jurisdiction on the Court in a different place. The bench of Justice Shekhar B. Saraf held that presence of a clause which confers exclusive jurisdiction upon a Court in a place other than the venue of arbitration is a ‘Contrary Indicia’ that prevents the venue of arbitration from becoming the seat. The Court held that while interpreting two conflicting clauses in...

No Appeal Or Revision Against Delay Condonation In Filing Application U/S 34 For Setting Aside Arbitral Award: Jammu & Kashmir High Court

The Jammu and Kashmir and Ladakh High Court has held that no appeal or revision would lie against an order allowing an application for condonation of delay accompanying an application filed under section 34 of the Arbitration and Conciliation Act for setting aside arbitral award.A bench of Justice Javed Iqbal Wani said the legislature by using expression an appeal shall lie from the orders provided therein "and from no others" in Section 37 (Appealable orders) has taken away the right to...

Arbitration Cases Monthly Round-Up: May 2023

SUPREME COURT:Referral Court Has Duty To Conclusively Decide Issue Of ‘Existence & Validity Of Arbitration Agreement’ Raised At Pre-Referral Stage: Supreme CourtCase Title: Magic Eye Developers Pvt. Ltd. vs M/s. Green Edge Infrastructure Pvt. Ltd. & Ors. The Supreme Court has held that under Section 11(6) of the Arbitration and Conciliation Act, 1996, when the issue of ‘existence and validity of an arbitration agreement’ is raised at pre-referral stage, then the Court is duty...