Supreme Court Refuses To Set Aside “Patently Illegal” Arbitral Award, Modifies Relief Instead

The Supreme Court on Tuesday refused to set aside an arbitral award despite finding it to be patently illegal, choosing instead to modify the award itself to bring finality to a dispute that has been pending since 2012. A Bench of Justice Sanjay Kumar and Justice K. Vinod Chandran observed that sending the parties back into fresh litigation would cause further hardship and delay. “Though the award, being patently illegal, deserves to be set aside under Section 34(2A) of the Arbitration Act, we...

Delhi High Court Upholds ₹1.22 Crore Award Against Delhi Tourism & Transportation Development Corporation

The Delhi High Court on 21 April dismissed Delhi Tourism & Transportation Development Corporation's challenge to a majority arbitral award in favour of contractor Gammon India Ltd in a dispute over escalation payments under a construction contract for a bridge project over the Yamuna river. Justice Harish Vaidyanathan Shankar held that the arbitral tribunal's interpretation of the contract was a plausible one and did not warrant interference. DTTDC had entered into the contract with Gammon...

Power To Correct Clerical Errors In Arbitral Awards Can't Be Used To Substantially Modify Them: Supreme Court

The Supreme Court on Tuesday reiterated that the limited power to correct clerical, computational, or typographical errors in an arbitral award cannot be used to substantially modify it by replacing simple interest with compound interest. Setting aside Gujarat High Court and Commercial Court orders, the Court held that Saryu Plastics Pvt. Ltd. was entitled only to simple interest at 21.675% during the pendency of arbitration, reversing a modification that had increased Gujarat Water Supply and...

Supreme Court To Examine If It Can Invoke Article 142 To Enable Arbitral-Style Dispute Resolution Where Existing Remedies Fail

The Supreme Court on Tuesday issued notice on applications filed by an intervenor raising the question of whether, in exceptional cases involving complex disputes where existing remedies are incapable of producing effective and expeditious resolution, the top court can create a court-supervised dispute resolution mechanism with arbitral characteristics. The question particularly concerns matters involving State instrumentalities. A Bench of Justices Prashant Kumar Mishra and N V Anjaria issued...

Denial Of Compensation Under A Particular Head Under NH Act Can Be Arbitrated: Rajasthan High Court

The Rajasthan High Court has held that the expression “amount determined” under the National Highways Act includes even cases where compensation is completely denied under a particular head, allowing landowners to challenge such decisions before an arbitrator. Justice Sanjeet Purohit ruled, “The expression 'amount determined' cannot be confined to the narrower meaning of 'amount quantified.' Determination is a process whereby a claim is examined in light of the material available on record and...

Delhi High Court Denies Interim Relief To Buyer As Developer's Claims Fail In Arbitration

The Delhi High Court has refused interim protection to a purchaser seeking to restrain the creation of third-party rights and maintain status quo over the first floor of a Greater Kailash-I property, holding that the claim could not survive once the developer's claimed authority to create such rights stood rejected in arbitrationJustice Harish Vaidyanathan Shankar held that the buyer's claim was entirely derivative of the Collaboration Agreement executed between developer Aditya Bhutani and the...

Delhi High Court Refuses Interim Relief To Commercial Space Licensee Against Delhi Metro Rail Corporation

The Delhi High Court has refused interim relief to QC One Solutions Pvt. Ltd. against Delhi Metro Rail Corporation's termination of a licence agreement for commercial spaces at three metro stations. The court prima facie found that the company had repeatedly defaulted on payment of licence fees and electricity dues despite multiple opportunities to cure the breaches. Justice Vikas Mahajan, in an order passed on May 20, held that QC One Solutions had failed to establish a prima facie case for...

Extension Without Liquidated Damages Does Not Bar Damages Or Bank Guarantee Invocation: Delhi HC

The Delhi High Court on 25 May held that extension of time without levy of liquidated damages does not, by itself, prevent a party from later invoking contractual remedies, including liquidated damages and enforcement of an unconditional bank guarantee, where disputes relating to delay and termination require arbitral adjudication. A Bench of Justice Mini Pushkarna declined relief to Kalpataru Projects International Limited and refused to grant interim protection under Section 9 of the...

Delhi HC Sets Aside ₹55 Lakh Arbitral Award To Budhiraja Electricals, Rejects Clause 10CC-Based Damages

The Delhi High Court on 22 May set aside arbitral awards granting Rs. 38.96 lakh towards escalation and Rs. 16.23 lakh towards loss of profits to Budhiraja Electricals in its dispute with the Public Works Department, Government of NCT of Delhi. Justice Harish Vaidyanathan Shankar held that an arbitral tribunal cannot use Clause 10CC of the General Conditions of Contract as a substitute for proof of actual loss once it finds the clause inapplicable to the extended period, and reiterated that...

High Courts' Supervisory Jurisdiction In Arbitration Falls Within 'Razor-Thin Compass': Delhi High Court

The Delhi High Court has held that its power to interfere in arbitral proceedings is confined to a “razor-thin compass,” refusing to interfere with an arbitral tribunal's rejection of Sunil Walia's jurisdictional objections in a partnership dispute involving Jason Enterprises. Justice Purushaindra Kumar Kaurav observed that judicial intervention in arbitral matters must remain exceptional. “At the outset, it may be observed that there is no absolute bar on the exercise of jurisdiction under...

J&K High Court Refers ₹34.88 Crore HRCC–ERA Dispute To Arbitration, Holds Non-Operational DRE No Bar

The Jammu & Kashmir and Ladakh High Court on 22 May held that the existence of a contractual pre-arbitration dispute resolution mechanism cannot defeat a party's right to invoke arbitration under Section 11(6) of the Arbitration and Conciliation Act, 1996, where such mechanism has not been operationalised. A Single-Judge Bench of Justice Sanjay Dhar appointed former Chief Justice of the High Court, Justice Ali Mohammad Magrey, as sole arbitrator to adjudicate disputes between Hassan Roads...

After Supreme Court Coal Block Ruling, Rajasthan High Court Restores Awards In Favour Of Parsa Kente Collieries

The Rajasthan High Court has effectively restored arbitral awards in favour of Parsa Kente Collieries Ltd. in its dispute with Rajasthan Rajya Vidyut Utpadan Nigam Ltd. The dispute concerned reimbursement of additional costs incurred after the Supreme Court's cancellation of coal block allocations and the subsequent continuation of the mining arrangement.In 2014, the Supreme Court had quashing coal block allocations across India, holding them arbitrary and illegal.A Division Bench of Acting...