Professional Engagement With Law Firm Does Not Disqualify Advocate From Acting As Arbitrator: Calcutta High Court

The Calcutta High Court bench of Justice Shampa Sarkar has held that an Advocate who has accepted briefs from a law firm for unrelated clients cannot, by that fact alone, be deemed ineligible to act as an Arbitrator in disputes involving parties not personally known to or represented by him, even if the same law firm appears in the arbitration. Brief Facts: This application under Section 14(2) read with Section 15 of the Arbitration and Conciliation Act, 1996 seeks termination of the...

Arbitration Act | Notice U/S 21 Not Always Necessary If Other Party Was Aware Of Dispute: Rajasthan High Court

Rajasthan High Court ruled that since the respondent was already aware of and was not taken by surprise regarding petitioner's invocation of arbitration clause, their plea that the application for appointment of arbitrator was not maintainable since no notice was served under Section 21 of the A&C Act 1996, lacked merit.The bench of Justice Anoop Kumar Dhand also reiterated the principle laid down in the case of M.D. Frozen Foods Exports Private Limited & others v. Hero Fincorp Limited...

Named Arbitrator In Notice U/S 21 Of A&C Act Can't Pass Orders Without Consent Of Other Party Or Order Of Appointment U/S 11: Karnataka High Court

The Karnataka High Court bench of Justice Suraj Govindaraj has held that a person who is the named Arbitrator in a notice issued under Section 21 of the Arbitration and Conciliation Act, 1996, cannot enter reference and pass orders without the other person consenting thereto or without an order of appointment of Arbitrator by institution or a Court under Section 11 of the Act. Brief Facts The Petitioners filed the writ petition seeking to quash the proceedings pending before...

Arbitrator Can't Grant Relief Contrary To Terms Of Contract: Rajasthan High Court Sets Aside Award Of Compensation For Delay

The Rajasthan High Court bench comprising Justice Avneesh Jhingan and Justice Bhuwan Goyal have held that an arbitral award which grants reliefs beyond the express terms of the contract, including compensation for losses and interest where no such entitlement exists under the agreement, is patently illegal and liable to be set aside under Section 37 of the Arbitration and Conciliation Act, 1996. Brief Facts On 08.08.2003, the State of Rajasthan issued a tender for the construction...

Limitation U/S 34(3) Of Arbitration Act Begins From Date Of Receipt Of Award When Delivery Is Undisputed: Rajasthan High Court

The Rajasthan High Court bench of Justices Avneesh Jhingan and Bhuwan Goyal has held that when the delivery of the arbitral award at the registered address is not disputed, the limitation period under Section 34(3) of the Arbitration Act cannot be suspended on the ground that the appellant became aware of the award at a later date. The limitation period must be computed from the date of receipt of the award, not from the date of knowledge. Brief Facts: The present appeal...

Arbitration Clause Prevails Over Exclusive Jurisdiction Clause, Court At Designated Seat Retains Jurisdiction: Delhi High Court

The Delhi High Court bench of Justice Purushaindra Kumar Kaurav has held that when an exclusive jurisdiction clause is expressly made "subject to" the arbitration clause, and the arbitration clause designates a different territorial location as the seat of arbitration, the arbitration clause prevails. In case of conflict, the jurisdiction of the court is determined by the seat designated in the arbitration agreement which overrides the exclusive jurisdictional clause mentioned in the...

Arbitration Weekly Round Up [12th May-18th May 2025]

Supreme CourtPrivate Arbitration Clauses Cannot Override Statutory Mandates Under MSMED Act : Supreme Court Case Title: M/S HARCHARAN DASS GUPTA VERSUS UNION OF INDIA Citation : 2025 LiveLaw (SC) 567 Reaffirming that the MSMED Act prevails over the Arbitration Act, as held in Gujarat State Civil Supplies v. Mahakali Foods, the Supreme Court set aside the Karnataka High Court's interference with MSMED proceedings in Delhi, despite the contract naming Bengaluru as the arbitration...

Plea Of Waiving Arbitration Clause Cannot Be Examined By Referral Court U/S Of 8 A&C Act, Falls Within Domain Of Tribunal: Delhi High Court

The Delhi High Court bench of Justice Purushaindra Kumar Kaurav while allowing an application under Section 8, Arbitration and Conciliation Act, 1996 (“ACA”) has observed that the plea of waiver of arbitration clause is a plea concerning rights in personam and does not render the dispute to be manifestly non-arbitrable. Consequently, the determination of such a plea properly falls within the jurisdictional domain of the Arbitral Tribunal itself. Facts The instant application had...

Director Of Govt Dept Ineligible To Act As Arbitrator In Dispute Between Dept & Other Party Due To Bar U/S 12(5) Of A&C Act: HP High Court

The Himachal Pradesh High Court bench of Justices Tarlok Singh Chauhan and Sushil Kukreja has held that the statutory bar under subsection (5) of Section 12 of the Arbitration Act applies squarely, as the Director, Department of Digital Technologies and Governance, cannot be considered an independent and impartial arbitrator due to his potential role as a consultant or advisor to the respondents; accordingly, he could not be appointed as an arbitrator, and another arbitrator was appointed...

Original Claim Can Be Amended At Argument Stage In Arbitration Proceedings, Provisions Of CPC Do Not Apply Strictly: Calcutta High Court

The Calcutta High Court bench of Justice Shampa Dutt (Paul) has held that an amendment to the original claim may be permitted during arbitral proceedings, even at the stage of final arguments, particularly when costs have been imposed on the party seeking the amendment and accepted by the opposite party—provided the amendment does not materially alter the nature of the original claim or cause prejudice. It further held that while Civil Procedure Code, 1908 (CPC) provisions may be...

No Fixed Format For Sending Notice U/S 21 Of A&C Act, Outlining Clear Intention To Adopt Arbitration Is Sufficient: Delhi High Court

The Delhi High Court bench of Justice Jasmeet Singh has held that there is no prescribed format for a notice invoking arbitration. The legal requirement is that the party invoking arbitration must clearly outline the disputes between the parties and state that if these disputes remain unresolved, arbitration proceedings will be initiated. The intention to resolve the disputes through arbitration must be explicitly stated in the notice. Brief Facts: In the present case, Petitioners...

Fresh Cause Of Action Cannot Accrue U/S 18 Of Limitation Act If Liability Is Acknowledged After Expiry Of Period Of Limitation: Delhi High Court

The Delhi High Court bench of Justices Subramonium Prasad and Harish Vaidyanathanshankar has held that for a valid acknowledgment under section 18 of the Limitation Act, 1963 certain essential requirements must be met. Firstly, the acknowledgment must be made before the relevant period of limitation has expired. Secondly, it must pertain specifically to the liability concerning the right in question. Lastly, the acknowledgment must be in writing and signed by the party against whom such ...