Supersession Of The Arbitration Clause Must Not Be Inferred Lightly: Delhi High Court

The Delhi High Court has ruled that in view of the principle of 'when in doubt, do refer', as enunciated by the Supreme Court, if there is an arbitration agreement between the parties, which is sought to be negated by a party by citing other provisions of a contract, which requires interpretation of the contract, the Court must lean towards referring the matter to arbitration. The Single Bench of Justice Anup Jairam Bhambhani held that an arbitration agreement embedded in a contract is...

Arbitration Agreement Not A Bar For Referring Parties To Facilitation Council Under MSMED Act: Andhra Pradesh High Court

The Andhra Pradesh High Court has ruled that a reference to the Facilitation Council under the Micro, Small and Medium Enterprises Development Act, 2006 (MSMED Act) for conciliation and subsequent arbitration, is not barred on account of the presence of an arbitration agreement between the parties. The Single Bench of Justice R. Raghunandan Rao held that even if the arbitration agreement between the parties provides for a different method of constituting an Arbitral Tribunal, the party...

Limitation Is An Aspect Of Public Policy For The Purpose Section 34 Of Arbitration Act : Madras High Court

The Madras High Court has ruled that limitation is a facet of public policy, and hence, an arbitral award which is incorrect qua limitation is hit by Section 34(2)(b)(ii), read with Clause (ii) of Explanation 1 to Section 34(2)(b)(ii) of the Arbitration and Conciliation Act, 1996 (A&C Act). The Single Bench of Justice M. Sundar held that, in view of the principle laid down by the Supreme Court in Voltas Limited versus Rolta India Limited (2014), if the counter claimant before an...

Account Statements And IT Returns Relied On By Arbitral Tribunal, Have Evidentiary Value : Delhi High Court

The Delhi High Court has ruled that the arbitral award cannot be set aside on the ground that the material relied upon by the Arbitral Tribunal does not measure up to the standards under the Indian Evidence Act, 1872. The Bench, consisting of Justices Vibhu Bakhru and Amit Mahajan, held that an award passed by the Arbitral Tribunal, by relying upon the Bank Account statements and the Income Tax Return furnished by the Claimant, cannot be said to be an unreasoned award or an award based...

Arbitration Cases Weekly Round-Up: July 31 To August 6 , 2022

Supreme Court: Mere Use Of Words "Arbitration" Or "Arbitrator" In A Clause Won't Make It Arbitration Agreement: Supreme Court Case Title: Mahanadi Coalfields Ltd. versus IVRCL AMR Joint Venture Citation: 2022 LiveLaw (SC) 657 The Supreme Court observed that an arbitration agreement should disclose a determination and obligation on behalf of the parties to refer the disputes to arbitration. The Bench comprising Justices DY Chandrachud and AS Bopanna noted that mere use of the...

Request For Oral Hearing Cannot Be Denied by The Arbitral Tribunal On The Ground That The Claims Involved Are Modest: Telangana High Court

The Telangana High Court has ruled that where the Arbitral Tribunal has passed a foreign arbitral award after denying the request of a party for oral hearing, the said arbitral award is contrary to the fundamental policy of Indian law as it is in conflict with the basic notions of justice and hence, it cannot be enforced in India. The Bench, consisting of Justices P. Naveen Rao and Sambasivarao Naidu, held that a person has a right of fair hearing and that a request for oral hearing...

Remedy Under RERA Act Is Not A Bar For Initiation Of Arbitration: Delhi High Court

The Delhi High Court has ruled that the dispute involving refund of payment under the 'Flat Buyer Agreement' from a real estate developer is arbitrable and is not barred by the existence of a concurrent remedy under the Real Estate (Regulation and Development) Act, 2016 (RERA Act). The Single Bench of Justice Sanjeev Narula held that the remedies available under the RERA Act are in addition to, and not in supersession of, the remedies available under the Arbitration and Conciliation...

Arbitral Tribunal Has The Power To Vacate/Modify Its Earlier Order: Delhi High Court

The High Court of Delhi has held that the arbitral tribunal would be guided by the principles of O. 39 R. 1&2 of CPC while considering the issue of vacation/modification of an interim order. The Bench of Justice Sanjeev Narula held that the tribunal does not have the power of substantive review of its order, however, it does have the power to vacate or modify the conditions of the interim order. Facts The parties entered into a License Agreement dated 31.08.2010 for...

Arbitration Clause In The Annexure To The Agreement Would Be Binding On The Parties: Delhi High Court

The High Court of Delhi has held that an arbitration clause contained in the annexure to the main agreement would be binding on the parties to that agreement. The Bench of Justice Neena Bansal Krishna held that in view of Section 11(6-A) the justiciability of claims and the defences can only be determined through adjudication by the arbitrator. Facts The petitioner filed an application for the appointment of an arbitrator to settle the dispute between the parties that arose out of...

Mere Use Of Words "Arbitration" Or "Arbitrator" In A Clause Won't Make It Arbitration Agreement : Supreme Court

The Supreme Court observed that an arbitration agreement should disclose a determination and obligation on behalf of parties to refer disputes to arbitration.The bench comprising Justices DY Chandrachud and AS Bopanna noted that mere use of the word "arbitration" or "arbitrator" in a clause will not make it an arbitration agreement, if it requires or contemplates a further or fresh consent of the parties for reference to arbitration.In the contract agreement between Mahanadi Coalfields Ltd....

Arbitration Cases Monthly Round-up: July 2022

Supreme Court: Court Under Section 34,37 Arbitration Act Cannot Modify An Award ; It Can Only Remand: Supreme Court Case Title: National Highways Authority of India versus P. Nagaraju @ Cheluvaiah Citation: 2022 LiveLaw (SC) 584 The Supreme Court observed that, under Section 34 or 37 of Arbitration and Conciliation Act, a Court cannot modify the award passed by the Arbitrator. The option would be to set aside the award and remand the matter, the bench comprising Justices...

Agreement Containing Arbitration Clause Not Signed By A Party; Parties Can Still Be Referred To Arbitration: Delhi High Court

The Delhi High Court has ruled that even if the Agreement containing an Arbitration Clause has not been signed by a party to the dispute, the parties can still be referred to Arbitration. The Single Bench of Justice Prateek Jalan held that it is not necessary for the written document to be signed by all the parties, as long as the existence of an arbitration agreement can be culled out from the exchange of letters or other means of communication between the parties. The petitioner...