ARBITRATION
Bombay High Court Sets Aside ₹15.92 Lakh Arbitral Award Against Stockbroker Over Trading Software Glitch
The Bombay High Court has set aside an arbitral award directing stockbroker 5 Paisa Capital Limited to pay ₹15.92 lakh to an investor over a dispute involving a technical glitch in its trading software.Justice Aarti Sathe held that the appellate arbitral tribunal had failed to decide key issues, including whether the glitch caused the investor's losses and whether the broker was justified in liquidating his positions under its Risk Policy.The court observed that the tribunal had merely...
Invalid Arbitrator Appointment Process Does Not Invalidate Arbitration Agreement: Bombay High Court
The Bombay High Court has held that an invalid procedure for appointing an arbitrator does not invalidate the underlying arbitration agreement, which may remain enforceable even if the agreed appointment mechanism cannot be followed.A Single Bench of Justice Amit Borkar made the observation while allowing an application filed by Nisus Finance Services Co. Limited and Nisus BCD Advisors LLP seeking the appointment of an arbitrator to resolve their disputes with Blisvins Realty Private Limited and...
Claim Of Trademark Infringement Cannot Be Used To Avoid Arbitration In Trademark Licensing Dispute: Delhi HC
The Delhi High Court has referred a trademark infringement and passing off suit filed by Singapore-based Utracon Corporation against its former Indian subsidiary, Ucon PT Structural System Private Limited, and other parties to arbitration. The court held that a party cannot avoid arbitration merely by including a claim for relief that may not independently be arbitrable.Justice Purushaindra Kumar Kaurav observed that the dispute centred on the continued use of the trademark after the licence...
Supreme Court Upholds Setting Aside Of Shreeram Builders Award, Says Terms Determine Agreement's Nature
On 29 October, the Supreme Court disposed of appeals filed by Shreeram Builders and upheld the Bombay High Court's decision to set aside an arbitral award directing the execution of a sale deed in favour of the builder, holding that the arbitrators had disregarded the parties' contractual terms. A Division Bench comprising Justices Sanjay Kumar and Sanjeev Sachdeva reiterated that the nature of an agreement must be determined by the rights and obligations it creates, rather than its title or...
Arbitral Tribunal Cannot Grant Interest Contrary To Express Terms Of Contract: Delhi High Court
The Delhi High Court, on Wednesday, 28 October, held that an arbitral tribunal cannot award interest contrary to an express contractual provision excluding interest on a performance bank guarantee (PBG), as such an award conflicts with the contract and the public policy of India. A Division Bench comprising Justices Avneesh Jhingan and Shail Jain set aside the arbitral award in favour of Aust Grain against Metals and Minerals Trading Corporation of India Limited (MMTC) to the limited extent...
Delhi High Court Rejects DDA Challenge To ₹62.90 Lakh Awards, Says Blacklisting Threat Negates Consent
The Delhi High Court on 28 October dismissed Delhi Development Authority (DDA)'s objections to two arbitral awards of Rs. 30.91 lakh and Rs. 31.99 lakh in favour of S.R. Ashok & Associates in a housing construction dispute, including an award directing it to refund money recovered from the contractor under threat of blacklisting. Justice Jasmeet Singh held that a payment made under threat of blacklisting cannot be treated as voluntary or as a settlement, particularly when the DDA failed to...
Delhi High Court Sets Aside ₹8.15 Crore Award To Skipper Against Flowmore Over Prototype Inspection
The Delhi High Court on 28 October set aside an arbitral award of Rs. 8.15 crore in favour of Skipper Limited against Flowmore Limited, finding that the arbitrator's conclusions on prototype inspection and manufacturing clearance were unsupported by the evidence on record. A Division Bench comprising Justices Avneesh Jhingan and Shail Jain held that an arbitral award can be set aside where the arbitrator's findings suffer from patent illegality, even though the scope of appellate interference...
Supreme Court Appoints Justice RP Desai To Mediate Reliance-Government Dispute Over KG Basin Gas Extraction
The Supreme Court on Friday referred the long standing dispute between Reliance Industries Limited (RIL) and the Union Government over the extraction of natural gas from the Krishna Godavari (KG) basin to mediation.A bench comprising Chief Justice of India Surya Kant, Justices Joymalya Bagchi and V. Mohana requested former Supreme Court judge Justice Ranjana Prakash Desai to mediate the dispute. It also asked her to take assistance from two domain experts to be suggested by the parties. The...
Unsuccessful Arbitration Party Must Meet Higher Threshold For Post-Award Relief: Delhi High Court
On 28 October, the Delhi High Court held that a party unsuccessful in arbitration can seek interim protection under Section 9 of the Arbitration and Conciliation Act, 1996, after an adverse arbitral award, but must satisfy a higher threshold for such relief than at the pre-award stage. Justice Tushar Rao Gedela granted interim protection to Thor Ventures (OPC) Private Limited, restraining NYEQ Technologies Private Limited from selling or creating third-party rights over two Gurugram properties...
Delhi High Court Upholds ₹1 Crore Arbitral Award In Favour Of Contractor For 1999 Lok Sabha Poll Supplies
The Delhi High Court has upheld an arbitral award of over ₹1 crore to a contractor who supplied tents, furniture and electrical items on hire during the 1999 Lok Sabha elections. The court rejected a challenge by election authorities who alleged that the bills were inflated. A Division Bench of Justice Avneesh Jhingan and Justice Shail Jain held that the arbitrator had reasonably relied on evidence of physical verification by Returning Officers before the structures were dismantled. The court...
Supreme Court Asks Law Commission of India To Suggest Measures For Timely Enforcement Of Arbitral Awards
The Supreme Court on Wednesday asked the Law Commission of India to study the legal framework governing the enforcement of arbitral awards and recommend changes to ensure that successful parties can recover awarded amounts without prolonged litigation. The Court asked the Commission to identify practical obstacles to timely recovery, examine enforcement mechanisms in other jurisdictions and consider whether domestic and foreign arbitral awards require separate procedures or a common framework...
Arbitrator's Ineligibility Goes To Root of Jurisdiction, Can Be Challenged At Any Stage: Delhi High Court
The Delhi High Court has ruled that an objection to an arbitrator's ineligibility under Section 12(5) of the Arbitration and Conciliation Act, 1996, can be raised for the first time in an appeal and even at the execution stage, as the issue goes to the root of the arbitrator's jurisdiction.“This issue of ineligibility of arbitrator goes to the root of the jurisdiction and can be raised for the first time in an appeal under Section 37 of the Act, even at the stage of execution,” a Division Bench...