ARBITRATION
Delhi High Court Appoints Arbitrator After Earlier Plea Before UP Court Was Withdrawn
The Delhi High Court has recently allowed a plea to appoint an arbitrator in a dispute between partners of a firm, rejecting an objection that sought to block the case by relying on an earlier, abandoned court proceeding. Justice Harish Vaidyanathan Shankar said the objection under Section 42 of the Arbitration and Conciliation Act could not succeed because the earlier case filed in another court had been withdrawn without any decision. Section 42 is meant to prevent different courts from...
Road Transport Ministry Revises Highway Contracts, Bars Arbitration For ₹10 Crore-Plus Disputes
Disputes valued at Rs 10 crore or more, as well as declaratory and non-monetary disputes, under national highway contracts will no longer be referred to arbitration, under a circular issued by the Ministry of Road Transport and Highways on January 12, 2026. Such disputes will instead be dealt with through conciliation, without barring the parties from approaching civil courts. The circular updates the dispute resolution clauses in standard contracts used for Build-Operate-Transfer (Toll),...
Madras High Court Sets Aside Arbitral Award After Railways Unilaterally Appointed Tribunal
The Madras High Court has recently struck down an arbitral award in a dispute with the Integral Coach Factory after finding that the Railways unilaterally appointed the arbitral tribunal, even though the contractor had clearly objected to the process. Justice N. Anand Venkatesh held that the arbitral award stood “vitiated due to lack of jurisdiction” since the tribunal had been unilaterally constituted. The dispute goes back to a contract awarded in November 2017 by the Integral Coach Factory...
S. 37 of Arbitration Act | Fresh Material Barred At Appellate Stage If Not Placed Under Section 34: Calcutta High Court
The Calcutta High Court has held that parties to an arbitration cannot introduce completely new material for the first time at the appellate stage (Section 37) of arbitration proceedings if such material could have been produced earlier but was not placed before the court when the arbitral award was initially challenged (Section 34) The court emphasised that an appeal at this stage is not an opportunity to cure evidentiary lapses or supplement the record belatedly. A division bench of Justices...
Council Members Changed Between Hearing and Award: Calcutta High Court Sets Aside MSME Award
The Calcutta High Court has set aside an arbitral award passed by the Micro, Small and Medium Enterprises Facilitation Council.It held that the award in this case could not stand because it was delivered by a differently constituted tribunal than the one that heard the parties A division bench of Justice Debangsu Basak and Justice Md. Shabbar Rashidi found that the dispute was heard over several years but the Council's composition kept changing. The members who finally delivered and signed the...
Bias of Even One Arbitrator Taints Entire Arbitral Award: Madras High Court
The Madras High Court has set aside an arbitral award, holding that the bias of even a single arbitrator is sufficient to vitiate the entire award, even where the decision is unanimous. Justice N. Anand Venkatesh said parties are entitled to an arbitral tribunal that is impartial in its entirety and not merely a neutral majority. Bias, the court held, violates Section 18 of the Arbitration and Conciliation Act, 1996, which requires equal treatment of parties, and also goes against the...
Welfare Boards For Building And Construction Workers Mandatory Before Levy Of Cess: Supreme Court
The Supreme Court has recently held that the constitution of Welfare Boards under the Building and Other Construction Workers Act, 1996 (BOCW), is a mandatory precondition for the effective levy and collection of cess under the Building and Other Construction Workers' Welfare Cess Act, 1996The court ruled that in the absence of such Welfare Boards, cess could neither have been validly levied nor collected, as the statutory scheme under both enactments presupposes the existence of a functional...
Calcutta High Court Declines To Entertain Arbitral Award Challenge In Disposed Arbitrator Appointment Plea
The Calcutta High Court has dismissed an application seeking to challenge an arbitral award after finding that it was filed in the wrong proceeding. The Court held that once it appoints an arbitrator, it cannot entertain further applications in that case and that any challenge to an award must be filed separately under the Arbitration and Conciliation Act. In this case, the opposite parties approached the High Court after the arbitral award was passed but filed their challenge in the already...
Courts Cannot Substitute Plausible Arbitral View Merely Because Another Is Possible: Supreme Court
The Supreme Court has reiterated that courts should exercise minimal interference with arbitral awards and cannot substitute an arbitral tribunal's interpretation of a contract merely because another view is possible. The court also held that although the Building and Other Construction Workers Act, 1996 (BOCW Act) and the Welfare Cess Act were brought into force in the mid-1990s, they could not be given effect to for several years due to the failure of governments to constitute statutory...
Bombay High Court Overturns Arbitral Award Granting Toll Loss Relief Based On Pre-Contract Meeting Minutes
The Bombay High Court has set aside an arbitral award that granted toll loss compensation to a private concessionaire by treating pre-contract Minutes of Meeting as a binding part of the contract. Justice Somasekhar Sundaresan held that the arbitral tribunal had misread the contract, effectively converting a force majeure clause into a guaranteed revenue mechanism. The Court said this interpretation was an “impossible view,” “irrational,” and suffered from “manifest perversity,” and held...
'Full and Final' Settlement Does Not Bar Arbitration On Fresh Disputes: Delhi High Court Reiterates
The Delhi High Court has reiterated that a “full and final” settlement does not automatically bar arbitration if fresh disputes arise from the settlement's implementation and the parties have agreed to arbitrate such disputes. A single-judge bench of Justice Jyoti Singh ruled that an arbitration clause incorporated in a settlement agreement and reflected in a consent award constitutes a valid arbitration agreement under the Arbitration and Conciliation Act, 1996. The court clarified that...