Arbitration Act : Supreme Court Asks High Courts To Submit Particulars of All Pending Section 11(6) Applications

The Supreme Court, on April 21, asked its Registry to seek particulars of the pending applications under Section 11(6) of the Arbitration and Conciliation Act, 1996 from all High Courts. It noted that the same shall reach the Apex Court by 06.05.2021. A Bench comprising Justices M.R. Shah and B.V. Nagarathna was hearing a plea assailing the order dated 30.06.20202 passed by the Telangana High Court, which had decided to dismiss an application filed under Section 11(6) of the...

Second Section 9 Application, Relief Can't Be Granted As It Would Amount To Main Relief In Arbitration :Gujarat High Court

The Gujarat High Court has ruled that once an application under Section 9 of the Arbitration and Conciliation Act, 1996 (A&C Act) seeking interim measures has been disposed of, a subsequent similar application seeking similar reliefs, which were already dealt with in the earlier proceedings, is not maintainable. The Bench, consisting of Justices N.V. Anjaria and Samir J. Dave, held that principal relief cannot be granted at the interim stage, and granting interim directions which...

Insufficiency Of The Stamp Duty On The Arbitration Agreement Is A Jurisdictional Issue Under Section 16 Of The A&C Act: Delhi High Court

The High Court of Delhi has held that the sufficiency of the stamp duty on the arbitration agreement is a jurisdictional issue under Section 16 of the A&C Act. The Single Bench of Justice Sanjeev Narula has held that an objection as to the deficiency in the stamp duty shall be decided as a preliminary issue since the inadequately stamped arbitration agreement can neither be taken in evidence nor can be acted upon, therefore, the tribunal should direct the parties to first get the...

Weekly Digest Of Arbitration Cases: April 17 - April 23, 2022

Supreme Court 1. Arbitrators Must Say Upfront Their Fees For The Number Of Sittings, Opines Supreme Court During Hearing Case Title: Oil and Natural Gas Corporation Ltd. versus Afcons Gunanusa The Supreme Court, while hearing on the issue of fixation of standards for fees for arbitrators, has emphasized on "upfront" fixation of arbitrator's fee. The Bench of Justices D.Y. Chandrachud, Sanjiv Khanna and Surya Kant was considering the issue regarding the mandatory nature of the ...

Arbitration Clause Survives The Termination Of The Underlying Agreement: Madras High Court Reiterates Legal Position

The High Court of Madras has held that the arbitration clause contained in a partnership deed survives the termination of the deed. The Court held that the clause is an independent agreement and outlives the main contract in which it is incorporated. The Court reiterated that all the issues related to the arbitrability of the claims shall be decided by the arbitral tribunal unless it is a clear case of deadwood. The Court held that Section 11 of A&C Act does not permit elaborate...

Court Can't Grant Interim Relief Under Section 9 Of A&C Act, If The Contract Is Determinable: Bombay High Court

The Bombay High Court has held that an application for interim relief in the form of specific performance of the contract would not be maintainable when the nature of the contract is determinable. The Single Bench of Justice G.S. Kulkarni has held that specific performance cannot be granted in respect of an agreement that can be terminated by either of the parties without assigning any reasons. It held that Section 14(1)(c) and Section 41(e) of the Specific Relief Act would be...

If Original Agreement Contains Arbitration Clause, Subsequent Agreement Extending Just Validity Need Not To Have A Separate Arbitration Clause: Calcutta High Court

The High Court of Calcutta has held that a subsequent agreement entered into between the parties need not contain a separate arbitration clause if it is made only to extend the validity of the original agreement that contained an arbitration clause. The Single Bench of Justice Shekhar B. Saraf has held that if the new agreement provides for a specific reference to the terms of the earlier agreement and does not contain any clause other than the extension of the validity of the...

Whether A Party Is Entitled To Relief In Arbitral Proceedings In Absence Of Third Party, To Be Decided By The Arbitrator: Delhi High Court

The Delhi High Court has ruled that once a valid arbitration agreement exists between the parties, the issue whether a party is entitled to any relief in the arbitral proceedings in the absence of a third party, who is not a party to an agreement, is covered by the Doctrine of Competence-Competence and must be decided by the Arbitrator. The Single Bench of Justice Mukta Gupta held that whether a party who is not a signatory to an arbitration agreement is required to be impleaded in the...

S.14 Arbitration Act Does Not Confer Power On Court To Expunge Any Part Of Arbitral Tribunal's Order: Delhi High Court

The Delhi High Court has observed that a petition filed under sec. 14 of the Arbitration and Conciliation Act, 1996 does not confer any power on the Court to expunge any part of the order of the Arbitral Tribunal.Justice Sanjeev Sachdeva was dealing with a plea filed under sec. 14(2) read with sec. 15 of the Arbitration and Conciliation Act seeking termination of the mandate of the Arbitral Tribunal and also for expunging the adverse and prejudicial remarks contained in order dated October 5,...

Invocation Of Writ Jurisdiction Against An Order Of Arbitral Tribunal Is Not Normally Permissible: Telangana High Court

The Telangana High Court has ruled that a writ petition under Article 226 of the Constitution of India cannot lie against an order passed by an Arbitral Tribunal in an application filed under Section 16 of the Arbitration and Conciliation Act, 1996 (A&C Act), challenging the jurisdiction of the Arbitral Tribunal, if the challenges raised by the party go into the merits of the claim raised by the claimant before the Arbitral Tribunal and not to the jurisdiction of the Arbitral Tribunal....

Res Judicata Not Applicable To Subsequent Arbitral Proceedings If First Award Was Set Aside Due To Incompetence Of Tribunal: Kerala High Court

The Kerala High Court has held that there is no legal impediment for arbitrating parties to initiate fresh proceedings if the district court sets aside an award on any issue not yet concluded in that award. This implies that the principles of res judicata will have only a limited application in such proceedings under the Arbitration and Conciliation Act.A Division Bench of Justice P.B. Suresh Kumar and Justice C.S Sudha observed that even if the earlier award was one set aside not on any ground...

Manifest Intention To Arbitrate Is A Sine Qua Non For Filing An Application Under S.9 Before The Commencement Of The Arbitration: Madras High Court

The High Court of Madras has held that manifest intention to arbitrate is a sine qua non for filing an application under S. 9 before the commencement of the arbitration. No interim relief can be granted if the intention to arbitrate is missing. The Single Bench of Justice M. Sundar held that manifest intention to arbitrate is a jurisdictional fact that must precede the application under S. 9 of the Act. It also held that Court would only appoint the receiver when the applicant is ...