ARBITRATION
Clause 18 Of Vivad Se Vishwas-II Scheme Is Mandatory If Claim Satisfies Twin Test: Orissa High Court
The Orissa High Court, while hearing an appeal u/s 37 of the A&C Act, a Writ Petition filed by the Respondent for directions to the Appellant to consider the offer made under appeal, observed Vivad se Vishwas II (contractual disputes) scheme (“the scheme”), observed that Clause 18 of the scheme is mandatory in nature. The bench of Justice Sanjeeb K. Panigrahi observed that once a contractor chooses to settle under such terms, the procuring entity cannot deny the claim without...
Absence Of Word 'Seat' Does Not Oust Court's Jurisdiction Conferred By Arbitration Agreement: Delhi High Court
The Delhi High Court bench of Justice Jasmeet Singh has held that absence of the word 'seat' does not strip the court of its exclusive jurisdiction to decide disputes arising out of an arbitration agreement. This is a petition filed under Section 11(6) of the Arbitration and Conciliation Act, 1996 (“1996 Act”) seeking appointment of an Arbitrator for adjudication of disputes between the parties arising out of the Work Order/ Acceptance Letter dated 21.10.2021. The petitioner ...
Counterclaim In Arbitration Cannot Be Allowed After Commencement Of Claimant's Evidence: Calcutta High Court
The Calcutta High Court bench of Justice Hiranmay Bhattacharyya has held that a counterclaim in arbitration proceedings cannot be allowed after the commencement of the claimant's evidence, as doing so would cause serious injustice to the other party. The present petition has been filed under Article 227 of the Indian Constitution against an order passed by Arbitrator by which an application seeking amendment in the Statement of Defence (SoD) to include a counterclaim was rejected. ...
Independent Panel Of Arbitrators Not Curated By Either Party Cannot Be Challenged On Grounds Of Impartiality: Delhi High Court
The Delhi High Court bench of Justice Jasmeet Singh has held that when the panel of arbitrators from which appointments are to be made is broad-based, comprising retired Supreme Court Judges and other eminent officials, and is independent, not controlled by any party, the other party cannot refuse to abide by the institutional rules it has consciously agreed to, on the ground that the panel is not impartial. The present petition has been filed under Section 11(6) of the Arbitration and...
Writ Petition Can Be Converted To Appeal U/S 37 Of Arbitration Act If It Does Not Prejudice Respondents: Allahabad High Court
The Allahabad High Court Bench of Justice Manish Kumar Nigam allowed the conversion of a writ petition under Article 227, Constitution of India (“COI”) into an appeal under Section 37, Arbitration and Conciliation Act (“ACA”) noting that where a particular kind of proceeding is not maintainable and a different kind of proceeding lies in respect thereof before the Court, the Court has jurisdiction to convert one into other subject to law relating to limitation and court fees. Facts ...
Arbitrator's Decision To Defer Compliance With Essential Pre-Condition In Agreement Amounted To Rewriting Contract, Vitiated It: Delhi HC
The Delhi High Court Bench of Justice Jasmeet Singh while allowing a petition under Section 34, Arbitration and Conciliation Act (“ACA”) observed that when the contract required the bidder to establish an office in India as a pre-requisite to performance, the decision by the Arbitrator holding that compliance could be deferred, amounted to rewriting the contract. Such a holding violated fundamental policy of Indian law and the award was liable to be set aside. Facts The present...
Purpose Of A&C Act Stands Defeated If There Are Delays In Executing Arbitral Award: Jharkhand High Court
The Jharkhand High Court division bench comprising Chief Justice Tarlok Singh Chauhan and Justice Rajesh Shankar observed that the purpose and the object of the Arbitration and Conciliation Act, 1996, and the Commercial Courts Act, 2015, would stand defeated if there are delays in the execution of the Arbitral Award. The present petition was filed by M/s/ R.K. Construction Private Limited (“RKCPL”), praying for expeditious adjudication of the execution petition filed by RKCPL before...
S. 37(1)(a) Arbitration Act | Clause Restricting Interest On Delayed Payments By Itself Won't Bar Pendente Lite Interest : Supreme Court
The Supreme Court on Tuesday (Sep.2) observed that an Arbitral Tribunal can grant pendente lite interest unless expressly or impliedly barred in the contract. It added that a contractual clause barring interest on delayed payments does not prevent an arbitral tribunal from awarding pendente lite interest, i.e., the interest for the period during which the arbitration is pending. “…arbitral tribunal can be denuded of its power to award pendente lite interest only if the agreement/ contract...
Arbitration | Delivery Of Award To Govt Official Not Connected With Case Doesn't Amount To Valid Service On State : Supreme Court
The Supreme Court has clarified that when the government or one of its departments is a party to arbitration, delivery of an arbitral award to an official who is not connected with or aware of the proceedings cannot be treated as valid service for commencing the limitation period to challenge the award. Citing its ruling of Union of India vs. Tecco Trichy Engineers & Contractors (2005), the Court said that the delivery of the copy of the arbitral award should be made to the “party to the...
S.5 Of Limitation Act Applies To Revision Pleas Under Bihar Public Works Contracts Disputes Arbitration Act: Patna High Court
The Patna High Court Bench of Justice Ramesh Chand Malviya has observed that Section 5, Limitation Act applies to revisions under Section 13, Bihar Public Works Contracts Disputes Arbitration Act, 2008 (“BPWCDA Act”), meaning thereby that delay in filing a challenge to awards passed under BPWCDA Act can be condoned by applying Section 5, Limitation Act. Since there were conflicting opinions of the Patna High Court on the said point, the matter was sent or reference to a larger bench. ...
Tomorrow's Arbitration: Transparency, Efficiency and Trust
From the Past to the Present: The Story of ArbitrationSince the dawn of time, humans have engaged in some form of arbitration for resolving disputes. Thus, the private adjudicatory process of arbitration can be said to have a prehistoric origin. However, even after courts were established by the state and rules of procedure and evidence were designed and courts became the accepted method of resolving disputes, the practice of arbitration continued because parties to a dispute wanted to settle...
Delivery Of Certified Copy Of Award After Signing & Authentication Constitutes Valid Service U/S 31(5) Of Arbitration Act: Calcutta HC
The Calcutta High Court bench of Justice Shampa Sarkar held that delivery of a certified copy of the award, signed by the members, when properly addressed, stamped, and sent by speed post with delivery confirmed by the postal department, amounts to effective service even if the original signed copy of the award is not dispatched. The present application has been filed under section 47 of the Civil Procedure Code (CPC) seeking a declaration that the award dated 10.11.2020 is non-est and...