Bombay High Court Says Freezing Bank Accounts Cannot Be Routine Interim Relief Under Arbitration Act

The court partly allowed Tata Capital's petitions seeking freezing of borrowers' bank accounts, disclosure of assets, and appointment of a court receiver.

Manipur High Court Sets Aside Arbitral Award On Parties' Consent In Thoubal Multipurpose Project Dispute

The Manipur High Court has, recently, with the consent of Progressive Construction Limited and the State of Manipur, set aside an arbitral award relating to the Thoubal Multipurpose Project (Construction of Earth Dam) and ordered a de novo arbitration.Chief Justice M. Sundar, while disposing of an arbitration petition filed by Progressive appointed former Chief Justice of the Manipur High court Justice D. Krishnakumar as the substitute sole arbitrator to conduct the arbitration proceedings and...

'Meeting Of Minds' To 'Meeting Of Algorithms': Justice Vikram Nath Flags AI Challenges At UNCITRAL Event

On Sunday, 26 July, Supreme Court Judge Justice Vikram Nath delivered the valedictory address at an international conference marking the 60th anniversary of the United Nations Commission on International Trade Law (UNCITRAL). He told delegates that contract law may need to reconsider how it attributes legal intention in the age of artificial intelligence (AI)-driven commercial contracting, questioning whether the traditional doctrine of consensus ad idem still holds as autonomous systems...

Allahabad High Court Partly Sets Aside ₹157.57 Cr Arbitral Award Against U.P. State Highways Authority

The Allahabad High Court on 23 July held that a financial model based on assumptions cannot, by itself, quantify a claim for loss of profits in arbitration, and set aside the Rs. 157.57 crore loss of profits award against the U.P. State Highways Authority. A Division Bench of Chief Justice Arun Bhansali and Justice Jaspreet Singh partly allowed the Authority's appeal under Section 37 of the Arbitration and Conciliation Act, 1996, severed the loss of profits component of the arbitral award,...

Arbitral Tribunal Cannot Compel Production Of Evidence Through Interim Relief Mechanism: Calcutta High Court

The Calcutta High Court has held that an arbitral tribunal cannot use its power to grant interim relief as a mechanism to compel a party to produce evidence. Justice Gaurang Kanth observed that interim powers under Section 17 are meant to protect the subject matter of a dispute, while matters relating to production of evidence are governed by Section 19 of the Arbitration and Conciliation Act, 1996.The judge observed, “Two features of this provision merit immediate attention. First, the powers...

Madras High Court Sets Aside Land Compensation Award, Says Arbitrator Must Give Reasons After Remand

The Madras High Court on 22 July held that an arbitrator reconsidering a matter after remand must independently apply his mind and provide reasons for accepting or rejecting the parties' objections, as merely reproducing pleadings and submissions does not constitute a reasoned arbitral award. A Division Bench of Justices P. Velmurugan and K. Govindarajan Thilakavadi allowed appeals filed by the National Highways Authority of India (NHAI), set aside the arbitral award enhancing compensation from...

Delhi High Court Upholds Arbitral Award, Relies On Registered Lease Deed Over Oral Claim Of Joint Venture

The Delhi High Court has recently upheld a partial arbitral award directing a hospital operator to hand over possession of leased premises. It held that an oral claim of a collaborative venture cannot override the clear terms of a registered lease deed when there is no written agreement to support it.Justice Om Prakash Shukla observed that arbitral tribunals are not bound by the Indian Evidence Act. However, they can draw guidance from its underlying principles. In this case, the parties had...

UNCITRAL's Next 60 Years Will Be About Inclusive, Tech-Responsive Commercial Law: AG R. Venkatramani

Attorney General R. Venkatramani on July 24 said that the next 60 years of the United Nations Commission on International Trade Law (UNCITRAL) would be about ensuring international commercial law remains inclusive, technologically responsive and truly global. He said this would be critical as international trade and commerce continue to evolve. Delivering the welcome address at the international conference commemorating UNCITRAL's 60th anniversary, Venkatramani said the Commission had spent the...

Arbitration Can Be Revived Even After Arbitrator's Mandate Ends: Jammu & Kashmir & Ladakh High Court

The Jammu & Kashmir and Ladakh High Court has reiterated that even after an arbitrator's mandate terminates for failure to make an award within the statutory period, a court can revive the arbitral proceedings by extending the time, and such an application is maintainable even after the mandate has expired.Justice Sanjay Dhar made the observation while extending by two months the time for a sole arbitrator to make an award in a contractual dispute arising out of a street-lighting project on...

Parties Cannot Invoke Arbitration Beyond Agreed Contractual Limits: Bombay High Court

The Bombay High Court has held that where an arbitration clause expressly limits who may invoke arbitration and the disputes that may be referred, parties cannot seek appointment of an arbitrator beyond those agreed limits. Refusing to appoint an arbitrator in applications filed by individual members of a cooperative housing society, Justice Arun R. Pedneker observed, "In view of the specific arbitration clause and the limitations placed therein and the parties having agreed to refer only...

Email Delivery Of Scanned Signed Arbitral Award Starts Limitation For Challenge: Delhi High Court

The Delhi High Court on 7 July held that an arbitrator's email transmitting a scanned signed copy of an arbitral award amounts to valid delivery under Section 31(5) of the Arbitration and Conciliation Act, 1996 and starts the limitation period for challenging the award under Section 34. Justice Om Prakash Shukla dismissed a petition by the Chief Engineer, Employees' State Insurance Corporation (ESIC), challenging an arbitral award dated 19 August 2023 in favour of Enarch Consultants as...

Foreign Award Enforcement Can't Be Refused For Ignoring Contract Or Proof Burden Shift: Allahabad HC

The Allahabad High Court on 13 July held that courts cannot refuse to enforce a foreign arbitral award under Section 48(2)(b) of the Arbitration and Conciliation Act, 1996 (which sets out the limited grounds for refusing enforcement of a foreign award) merely because they disagree with the arbitral tribunal's appreciation of evidence or findings or the burden of proof. A Bench of Justice Piyush Agrawal allowed the enforcement application filed by Fomento Commodities PTE. Ltd. and directed...