Rajasthan High Court Sets Aside Arbitral Award For Failing To Identify Disputed Facts, Consider Evidence

The Rajasthan High Court has reiterated that an arbitral award based solely on pleadings, without framing issues concerning serious disputed facts or considering evidence, violates the principles of natural justice. It further held that such an award is against the public policy of India under Section 34 of the Arbitration and Conciliation Act, 1996. Relying on several apex court precedents, the court ruled, “Thus, the above Legal precedents make it clear that an arbitral award issued without...

Justice Rohinton F. Nariman Calls For Direct Division Bench Appeals Against Domestic Arbitral Awards

Former Supreme Court Judge Justice Rohinton F. Nariman on Friday called for doing away with the Single Judge stage for challenges to domestic arbitral awards and allowing parties to go directly before a High Court Division Bench, with a full appeal on both facts and law. He suggested that the Division Bench decide such appeals within one year. Justice Nariman also stressed that the arbitration regime must ensure not only speed and cost-effectiveness, but also accuracy, so that awards which are...

Copyright Disputes Can Be Resolved Through Arbitration Despite Remedy Under Copyright Act: Madras High Court

The Madras High Court has ruled that a copyright infringement dispute can be resolved through arbitration when the parties have agreed to that mode of dispute resolution, holding that the civil remedy available under the Copyright Act does not prevent arbitration.Justice K. Kumaresh Babu ruled,“It is true that Section 55 provides for a civil remedy in an infringement of a copyright. There can be no doubt that the civil remedy can also be by a process of arbitration, as arbitration is in the form...

Arbitration, Mediation Should Be Primary Modes Of Dispute Resolution, Not Alternatives: Justice K.V. Viswanathan

Supreme Court Judge Justice K.V. Viswanathan on Thursday said that arbitration and mediation should increasingly be viewed as primary modes of dispute resolution rather than merely alternatives to conventional litigation. He said the central question today was no longer whether arbitration should be encouraged, but what kind of arbitral system India should build. Justice Viswanathan was delivering the keynote address at the inaugural session of the Gujarat High Court Arbitration Centre...

Delhi High Court Lays Down Guidelines For Execution Of Insufficiently Stamped Domestic Arbitral Awards

The Delhi High Court has laid down detailed guidelines to its registry for ensuring compliance with stamp duty and registration requirements in petitions seeking enforcement of domestic arbitral awards.The directions come after the court held that an inadequately stamped arbitral award cannot be acted upon at the enforcement stage merely because the decree holder subsequently deposits the deficient stamp duty. Where adequate stamp duty is sought to be paid after the permissible period, the...

Homebuyer Can Claim Delay Compensation Through Arbitration Over RERA, Consumer Law Remedies: Delhi High Court

The Delhi High Court has ruled that a homebuyer can claim compensation for delayed possession through arbitration even though remedies are also available under the Real Estate (Regulation and Development) Act, 2016, and the Consumer Protection Act, 2019.“Merely because the Respondent elected to invoke the arbitration agreement instead of pursuing remedies under the Consumer Protection Act, 2019 or RERA, it cannot be deprived of compensation otherwise legally payable for delayed...

Delhi High Court Refers ₹1,889 Crore Jindal ITF-NTPC Arbitration Dispute To Third Judge After Split Verdict

The Delhi High Court has referred Jindal ITF Limited's dispute with NTPC Limited over an arbitral award worth about ₹1,889 crore to a third judge or a larger Bench after the two judges differed on whether the award should be upheld. The award arose from disputes over delays and deviations in a project for transporting imported coal to NTPC's Farakka Thermal Power PlantWhile Justice C. Hari Shankar upheld the award on claims concerning project delays and shortfalls, the guaranteed supply of coal...

Delhi High Court Revives Otsuka-Trans Engineers 'NIL' Award, Says Extra Work Claim Was Not Proved

The Delhi High Court on 1 September restored a “NIL” arbitral award rejecting Trans Engineers India Pvt. Ltd.'s Rs. 28.37 crore claim for additional work in Otsuka Chemical (India) Pvt. Ltd.'s Rs. 71 crore turnkey “Lion Project” for expansion of its chemical manufacturing plant at Kotputli, Rajasthan. A Division Bench of Justices Navin Chawla and Madhu Jain held that the Single Judge had exceeded the limited scope of review under Section 34 of the Arbitration and Conciliation Act, 1996 by...

Post-2015 Challenge Does Not Apply Amended Arbitrator Eligibility Rules To Earlier Arbitration: Delhi High Court

The Delhi High Court has recently ruled that merely filing a challenge to an arbitral award after the 2015 amendments to the arbitration law does not, by itself, make the amended rules on arbitrator eligibility applicable to an arbitration that commenced earlier. Justice Jasmeet Singh observed that where arbitration proceedings had commenced before October 23, 2015, the validity of the arbitrator's appointment must be examined under the law applicable to those proceedings. The subsequent...

Supreme Court Allows Adani To Enforce Coal Mining Contract Awards Against UPRVUNL If UCM Assets Fall Short

The Supreme Court has refused to interfere with a ruling permitting Adani Enterprises Ltd to pursue execution proceedings against Uttar Pradesh Rajya Vidyut Utpadan Nigam Ltd and other constituent entities of UCM Coal Company Ltd. It clarified, however, that Adani's claim must first be satisfied through UCM Coal Company's assets. Execution against the other entities can proceed only if any amount remains unpaid.A bench comprising Chief Justice of India Surya Kant, Justice Joymalya Bagchi and...

Delhi High Court Says Advance Service Mandatory For Fair Hearing In Second Plea Over Nagpur Logistics Park

The Delhi High Court on 1 September dismissed a second petition under Section 9 of the Arbitration and Conciliation Act, 1996 filed by DC Multi Modal Park Pvt. Ltd., after noting that the company had obtained a status quo order without advance-serving the successful bidder, even though it had the bidder's complete contact details.Justice Tushar Rao Gedela held that advance service in proceedings seeking interim relief is essential to ensure that parties who may be affected by an order get...

Once Referred To Arbitration Suit Cannot Remain Pending Before Civil Court: Calcutta High Court

The Calcutta High Court on 31 August held that once a civil court refers parties to arbitration under Section 8 of the Arbitration and Conciliation Act, 1996, the suit does not remain pending before the civil court. A Division Bench of Justices Sabyasachi Bhattacharyya and Sandip Kumar De allowed an appeal by Badri Narayan Bhatter and another, restored a partition suit and directed the Trial Court to appoint a Receiver for the disputed Kolkata property. The judges held: “...Section 8 of the...