High Court Cannot Extend Arbitrator's Mandate Merely Because It Appointed Arbitrator: Supreme Court

The Supreme Court has held that a High Court's power to appoint an arbitrator under Section 11 of the Arbitration and Conciliation Act, 1996 does not automatically empower it to extend the arbitrator's mandate under Section 29A(4) of the Act, even when the arbitrator was appointed by the Chief Justice of the High Court or his designate. The Court said that the power to extend the mandate rests with the competent court as defined under Section 2(1)(e) of the Act."Based on our above discussion and...

Bombay High Court Allows Widow To Withdraw ₹1.25 Crore Pending Arbitration Over Disputed Flat Sale

The Bombay High Court on 27 October allowed Laxmi Madhukar Athawale, a 75-year-old widow, to withdraw Rs. 1.25 crore with accrued interest deposited by SSD Escatics Private Limited and its representatives, pending arbitration over a Mumbai flat allegedly sold to her despite an earlier sale and mortgage. Justice Amit Borkar held that continued retention of money deposited as interim protection may cause undue hardship when circumstances materially change, and that withdrawal may be permitted...

Entertaining Time-Barred Arbitration Claims Violate Public Policy Of India: Jammu & Kashmir & Ladakh High Court

The Jammu & Kashmir and Ladakh High Court has recently held that entertaining time-barred claims in arbitration violates the statutory mandate under Section 43 of the Jammu and Kashmir Arbitration and Conciliation Act, 1997, making the resulting award vulnerable to being set aside as contrary to public policy.“Consequently, entertaining a time-barred claim violates statutory mandate, rendering the resulting award vulnerable to being set aside for violating Public Policy,” a division bench of...

Fraud Allegations Do Not Automatically Bar Arbitration In Civil Disputes: Madhya Pradesh High Court

The Madhya Pradesh High Court on 23 October held that allegations of fraud and forgery do not automatically render a dispute non-arbitrable when they arise from a civil dispute under an arbitration agreement and can be examined by the arbitral tribunal. Justice Vinay Saraf made the observation while allowing an application by SAM Industries Ltd. under Section 11 of the Arbitration and Conciliation Act, 1996, to appoint an arbitrator for its dispute with Mahesh, and proposed to appoint former...

Arbitral Award Challenge Limitation Runs From Certified Copy Receipt: Madhya Pradesh High Court

The Madhya Pradesh High Court on 23 October held that where an arbitral tribunal has not served a signed copy of an award under Section 31(5) of the Arbitration and Conciliation Act, 1996 (Arbitration Act), the limitation period for challenging the award under Section 34(3) begins when the aggrieved party receives a certified copy. Justice Vinay Saraf dismissed an appeal filed by Anjana, proprietor of Maheshwari Vastra Bhandar, against the rejection of her application to set aside an arbitral...

Arbitrators Need Not Discuss Every Document Or Contractual Clause In Award: Delhi High Court

The Delhi High Court has recently held that an arbitral award must be read fairly and as a whole, and arbitrators are not required to discuss every document or contractual clause separately, provided their reasoning is clear and reflects a permissible interpretation of the dispute.A Division Bench of Justice Anil Kshetarpal and Justice Bharat Parashar made the observation while partly allowing an appeal filed by MMTC Limited against Chauhan Jewellers and its partners in a ₹57.74 lakh dispute...

CPWD Cannot Restrict Contractor's Arbitrator Choice To Its Own Panel: Delhi High Court

The Delhi High Court has held that the Central Public Works Department (CPWD) cannot appoint a sole arbitrator through a mechanism that empowers its own officer to make the appointment. It also cannot restrict a contractor's choice to a panel of arbitrators curated by the department.Justice Sachin Datta observed:“…the choice of the petitioner stands confined to a list of 'CPWD Empanelled Arbitrators' prepared by the respondent, with the Arbitrator Appointing Authority empowered to select and...

Housing Society Member Can Seek Interim Relief Despite Not Signing Agreement With Arbitration Clause: Bombay HC

The Bombay High Court has recently ruled that a housing society member cannot be denied interim protection in a redevelopment dispute merely because he has not signed the redevelopment agreement.Justice Amit Borkar held that the member's recorded membership and claimed rights in the property must also be considered.“However, the fact that the Petitioner has not signed the agreement is not enough to reject his Petition without considering his claim, membership and need for interim protection. He...

Arbitral Awards Not Invalid Due To Lack Of MSME Registration At Relevant Time: Jammu & Kashmir And Ladakh High Court

The Jammu and Kashmir and Ladkah High Court has held that arbitral awards arising from disputes referred to a Micro and Small Enterprises Facilitation Council do not become nullities merely because the supplier is assumed to have been unregistered under the Micro, Small and Medium Enterprises Development Act, 2006, when the transactions took place. The court dismissed three revision petitions challenging the orders of the Principal District Judge, Jammu, which had rejected the objections...

Unsigned Copy Of Arbitral Award Sent By Opposing Party Cannot Trigger Limitation To Challenge It: Kerala High Court

The Kerala High Court has reiterated that the three-month limitation period for challenging an arbitral award begins only when a party receives a duly signed copy of the award, not when the opposing party forwards an unsigned copy.A single-judge bench of Justice Mohammed Nias C.P. observed, “Given the above, it follows that an unsigned draft, photocopy or other copy forwarded by the opposite party cannot, merely because it conveys the contents of the award, substitute for delivery and receipt of...

Bombay High Court Stays Malad Gymkhana's Restaurant Termination Notice, Bars Third-Party Rights

On Monday, 26 October, the Bombay High Court partly allowed Achieve Hospitality's petition against Malad Gymkhana Limited, staying the termination notice concerning its existing restaurant and restraining the Gymkhana from creating third-party rights in a proposed new restaurant and two banquet halls pending arbitration. A Bench of Justice Amit Borkar held that a party cannot bypass a contractually agreed cure period when terminating an agreement and must preserve the existing business...

Liquidated Damages Need No Proof Of Actual Loss If It Is Difficult To Quantify: Bombay High Court

The Bombay High Court on 23 October held that proof of actual loss is not necessary for awarding liquidated damages where the loss is difficult to quantify and the amount stipulated in the contract represents a genuine pre-estimate of damages agreed upon by the parties. Justice Aarti Sathe dismissed a petition filed by Kumar Urban Development Private Limited under Section 34 of the Arbitration and Conciliation Act, 1996, and upheld an arbitral award directing it to pay Rs. 2.675 crore to The...