ARBITRATION
Mere Delay In Pronouncement Of Arbitral Award Does Not Invalidate It Unless Prejudice Is Shown: Delhi High Court
The Delhi High Court has held that mere delay in pronouncement of an arbitral award does not by itself suffice to set it aside under section 34 of the Arbitration and Conciliation Act, 1996 ("Arbitration Act") unless the delay is undue, unexplained and demonstrably prejudicial to the parties.The Delhi High Court has held that a delay in the pronouncement of an arbitral award is not enough to set it aside, unless the delay is undue, unexplained and demonstrably prejudicial to the parties. ...
'Karta' Personally Liable if HUF is Unable to Satisfy Arbitral Award: Bombay HC
The Bombay High Court has declared that a 'Karta' has a personal and unlimited liability for satisfying unpaid arbitral dues of a Hindu Undivided Family (HUF), thereby enabling creditors to proceed against the Karta's private assets without a separate decree.In a major boost for award creditors, the Bench of Justice R.I Chagla has held that the "seat court" retains the jurisdiction to execute an arbitral award and provide interim relief, even if the judgment debtor's assets are situated outside...
Statutory Bar Under Commercial Courts Act Operates As Inherent Subject Matter Limitation In Arbitration: Calcutta High Court
The Calcutta High Court has held that the statutory bar in the Commercial Courts Act operates as an inherent subject-matter bar in arbitration related proceedings and cannot be waived by consent or conduct of the parties, even if no objection is raised before the court of first instance.Justices Sabyasachi Bhattacharyya and Supratim Bhattacharya made the observation on January 13, while deciding an appeal filed by Siddharta Chandra challenging an order passed by the District Judge, Hooghly,...
Delhi-Mumbai Expressway: NHAI Can Move to End Expressway Contract After Delhi High Court Lifts Restraining Order
The Delhi High Court, while hearing an appeal under Section 37(1)(b), has observed that an injunction granted by the Section 9 (power to grant interim measures) court ought not to have been granted. This injunction had restrained the National Highway Authorities of India (NHAI) from proceeding in furtherance of its notice of intention to terminate, dated 23.12.2025.Section 37(1)(b) of the Arbitration and Conciliation Act, 1996 (the Act), provides a right to appeal to the competent court against...
Reference to Arbitration Requires Independent Application, Cannot be Inferred from Plea to Reject Plaint: Calcutta High Court
The Calcutta High Court recently rejected a Master's summons application filed by M/s Samman Capital Limited, that sought stay of a commercial suit on the grounds of an existing arbitration clause.Master's summons under the Code of Civil Procedure (CPC) refers to a court order (summons) compelling a party to appear, often to provide documents or information relevant to an insolvency proceeding or specific case issues.The Court emphasised that for a dispute to be referred to arbitration, the law...
Unconditional Bank Guarantee Can Be Invoked Despite Contract Termination Dispute: Delhi High Court Reiterates
The Delhi High Court has reiterated that an unconditional performance bank guarantee can be invoked even if the contractor disputes the legality of the contract's termination, an issue the court said must be decided in arbitration.A single-judge bench of Justice Jasmeet Singh relied on precedents set by the apex court to hold that it cannot go into such questions while deciding a petition under Section 9 of the Arbitration and Conciliation Act. The Court clarified that it cannot go into the...
Parties Must Exhaust Contractual Dispute Resolution Before Court Appoints Arbitrator: MP High Court
The Madhya Pradesh High Court has held that a court cannot appoint an arbitrator under Section 11 of the Arbitration and Conciliation Act, 1996 unless the party seeking such appointment has first exhausted the dispute resolution mechanism contractually agreed upon between the parties. A Bench of Justice Pavan Kumar Dwivedi dismissed three applications filed by former employees of Taskis India Private Limited, seeking appointment of an arbitrator, holding that the applicants were bound by the...
Courts Cannot Decide Arbitrability While Appointing Arbitrators: Supreme Court Dismisses Motilal Oswal's Appeal
The Supreme Court of India recently held that courts cannot decide questions of arbitrability while appointing arbitrators, even when a party relies on a special statute to oppose arbitration. At the Section 11 stage, the court said judges are required to “confine to the examination of the existence of an arbitration agreement” and nothing beyond that. On that basis, the court dismissed an appeal filed by Motilal Oswal Financial Services Limited challenging the appointment of an...
Commercial Courts Cannot Hear Non-Commercial Arbitration Disputes Without Specified Claim Value: MP High Court
The Madhya Pradesh High Court has clarified that arbitration challenges arising from non-commercial disputes with no determinable monetary value cannot be heard by Commercial Courts, even if such courts function at the level of a Civil Judge (Senior Division). The court clarified that the Commercial Courts Act, 2015 applies only when two conditions are met, the dispute must be commercial in nature and must have a specified value as defined under the law. Justice Vivek Jain said that where...
Contractual Bar On Interest Binds Arbitrator; Delhi High Court Partly Sets Aside Award In BHEL–Delkon Dispute
In a dispute involving public sector undertaking Bharat Heavy Electricals Limited, the Delhi High Court has set aside a ₹66.50 lakh interest component of an arbitral award that had directed BHEL to pay Delkon India Private Limited. The court held that an arbitral tribunal cannot award interest where the contract expressly prohibits it, even if the termination of the contract is found to be illegal. A division bench of Justice V. Kameswar Rao and Justice Vinod Kumar ruled that the contractual...