Delhi Only Venue, Bhopal Court Has Jurisdiction In Beyond Malls–Century 21 Dispute: MP High Court

The Madhya Pradesh High Court has recently held that since Beyond Malls LLP and Century 21 Malls Pvt Ltd had agreed that courts where the leased property is located would have jurisdiction, and Century 21 first approached the Bhopal court for interim relief, the Bhopal court alone would have authority over all subsequent arbitration proceedings. A Division Bench of Justice Vivek Rusia and Justice Pradeep Mittal observed, “Therefore, in view of the above and as per clause 17.9 of the Agreement,...

Delhi High Court Upholds Arbitral Award Ordering PVVNL To Refund ₹4.5 Crore Deducted As Delay Damages To IL&FS

The Delhi High Court has recently refused to interfere with an arbitral award directing Paschimanchal Vidyut Vitaran Nigam Limited (PVVNL) to refund Rs. 4.50 crore deducted as liquidated damages from IL&FS Engineering and Construction Company Ltd, holding that recovery without proof of actual loss cannot be sustained. Dismissing the challenge under Section 34 of the Arbitration and Conciliation Act, 1996, Justice Subramonium Prasad upheld the award of Rs. 4,50,68,820 along with interest at...

Delhi High Court Upholds ₹39.6 Lakh Award Against Austin Hyundai In Paint Supply Dispute With Axalta

The Delhi High Court on Saturday upheld an arbitral award directing Austin Hyundai (Austin Distributors Pvt Ltd) to repay Rs 39.6 lakh to Axalta Coating Systems India Pvt Ltd, holding that termination of its Hyundai dealership did not extinguish its obligations under a separate supply agreement. A bench of Justice Anil Kshetarpal and Justice Amit Mahajan held that the supply agreement imposed independent minimum purchase obligations and was not contingent on the continuation of the dealership. ...

Delhi HC Refuses To Enforce Foreign Award In Favour Of MSA Global Over Arbitrator's Non-Disclosure Of Prior Association

The Delhi High Court has refused to enforce a foreign award in favour of MSA Global LLC (Oman) against Engineering Projects (India) Limited. It held that the arbitrator's failure to disclose a prior arbitral association with the MSA's Chairman gave rise to justifiable doubts as to his independence. The Court said this non-disclosure deprived the respondent of the opportunity to assess and challenge such impartiality. It therefore rendered the award contrary to the public policy of India under...

Delhi High Court Upholds Arbitral Award Directing Flexing It To Convert CCDs Into Equity

The Delhi High Court recently upheld an arbitral award directing Flexing It Services Private Limited to convert investor Colvyn James Harris's compulsorily convertible debentures into equity equivalent to 2% of the company's shareholding as on January 31, 2017. It also upheld the arbitral finding that repeated acknowledgments of liability in correspondence extended the limitation period. Declining to set aside the award in a challenge under Section 34 of the Arbitration and Conciliation Act,...

Bombay High Court Sets Aside Arbitral Award Against MSRDC In Toll Collection Dispute

The Bombay High Court has recently set aside an arbitral award in a dispute between Maharashtra State Road Development Corporation Ltd. (MSRDC) and Jai Laxmi Constructions Engineers and Contractors, holding that no arbitration agreement existed governing disputes under the Toll Collection Agreement and that an arbitration clause contained in a separate lender-related agreement could not be invoked for such disputes. A bench of Justice Somasekhar Sundaresan observed, “Therefore, the main test of...

Arbitral Award Not Decree At Challenge Stage, No Need For Separate Plea On Claims and Counterclaims: Delhi HC

The Delhi High Court has recently held that parties can challenge arbitral awards covering both claims and counterclaims through a composite petition under Section 34 of the Arbitration and Conciliation Act, rejecting an objection that separate petitions were required as they amounted to distinct “decrees”. Emphasising that Section 36(1), which states that an arbitral award “shall be enforced as if it were a decree of the court,” is confined to the stage of enforcement, the Court observed: "In...

'Can' In Arbitration Clause Implies Choice, No Mandatory Arbitration Without Clear Agreement: Supreme Court

The Supreme Court on Friday held that an arbitration clause using the word “can” does not make arbitration mandatory, ruling that parties cannot be compelled to arbitrate unless there is a clear and binding agreement to that effect under Section 7 of the Arbitration and Conciliation Act, 1996.A Division Bench of Justice Sanjay Karol and Justice Nongmeikapam Kotiswar Singh held that the clause in question only indicates a possibility of arbitration and not a binding obligation. “The clause...

Arbitrator Must Follow Fair, Evidence-Based Process Even In Ex-Parte Proceedings: Bombay High Court

On 15 April, the Bombay High Court held that even in ex-parte proceedings, an arbitrator must ensure a fair, evidence-based and unbiased process in terms of Section 25 of the Arbitration and Conciliation Act, 1996, and cannot treat claims as established merely because the other side remains absent. A Division Bench of Justices Arun R. Pedneker and Vaishali Patil Jadhav dismissed the appeal filed by Shinde & Sons and upheld the order of the District Judge at Beed setting aside the...

Supreme Court Dismisses Paharpur Plea Against Sinnar Thermal Power, Bars Arbitral Award Execution Post CIRP

The Supreme Court on Friday dismissed the special leave petition filed by Paharpur Cooling Towers Ltd. against Sinnar Thermal Power Ltd., effectively affirming the Delhi High Court's order dated February 11, which held that once a resolution plan is approved under the Insolvency and Bankruptcy Code (IBC), claims cannot be pursued through parallel arbitral award execution proceedings.A Bench of Justices Pamidighantam Sri Narasimha and Alok Aradhe, after hearing the parties, dismissed the...

Gauhati High Court Appoints Arbitrator, Allows Arbitration Without Notice As Intent To Arbitrate Was Clear

The Gauhati High Court has appointed its former judge Justice Achintya Malla Bujor Barua as sole arbitrator in a dispute between Ekta Shakti Foundation and the State of Assam, holding that, in the peculiar facts of the case, an arbitration plea can be entertained even without a formal notice where a valid arbitration agreement is undisputed. A Bench of Justice Soumitra Saikia said, "it appears that the dispute between the parties have not been resolved and on the other hand there is a method...

Seat Alone Determines Jurisdiction, Not Where Arbitration Is Conducted Or Award Is Pronounced: Supreme Court

The Supreme Court of India has set aside an order of the Jammu and Kashmir and Ladakh High Court which had declined to hear a challenge to an arbitral award on the ground that it was delivered in New Delhi, holding that jurisdiction lies with courts at the seat of arbitration and cannot shift based on where proceedings are conducted or the award is rendered. A Bench of Justices Pamidighantam Sri Narasimha and Alok Aradhe said, “The mere fact that arbitral proceedings are conducted or the award...