ARBITRATION
Criminal Investigation Cannot Be Used To Exert Pressure In Commercial Disputes: M.P. High Court
The Madhya Pradesh High Court on 16 September held that criminal proceedings cannot be used to exert pressure in commercial disputes where allegations of fraud or diversion of funds do not disclose the essential ingredients of a criminal offence. A Bench of Justice Himanshu Joshi quashed an Economic Offences Wing (EOW) complaint and consequential inquiry against Power Mech Projects Limited arising from a contractual dispute with Mapaex Minerals over sand mining projects, holding that the...
Arbitral Tribunal Cannot Reject One Party's In-House Witnesses While Accepting Opponent's: Bombay High Court
The Bombay High Court has held that an arbitral tribunal cannot reject one party's evidence merely because its witnesses are company employees while accepting evidence from similarly placed in-house witnesses of the opposing party. Justice Arun R. Pedneker made the observation while setting aside a ₹2.16 crore arbitral award against Forech India Limited in favour of JSW Jaigarh Port Limited over defective conveyor belts. The Court held that the tribunal's unequal treatment of witnesses amounted...
LiveLawBiz Arbitration Weekly Digest: October 19- October 24, 2026
NOMINAL INDEXAakash Educational Services Limited v. Vaibhav Gupta, Sole Proprietor of M/s Shivrekkha Corporations, 2026 LLBiz HC(DEL) 1166Som Shiva Impex Ltd. v. National Research Development Corporation & Anr., 2026 LLBiz HC(DEL) 1155Department of Land Resources v. M/s Mukesh and Associates, 2026 LLBiz HC(DEL) 1148Kirloskar Pneumatic Company Limited v. Oil and Natural Gas Corporation Limited, 2026 LLBiz HC(DEL) 1147AND Movie Products LLP v. Echelon Productions & Ors., 2026 LLBiz HC(BOM)...
Arbitral Tribunal Can't Award Compound Interest In Absence Of Stipulation In Contract: Allahabad High Court
The Allahabad High Court has held that an arbitral tribunal cannot award compound interest, or interest upon interest, where the contract between the parties makes no provision for it. The Court held that while the tribunal retains the power to grant interest both for the period before the reference and for the pendente lite and future periods, the compounding of that interest is impermissible in the absence of a specific stipulation.Section 31(7)(a) of the Arbitration and Conciliation Act,...
Arbitral Award Does Not Merge With Civil Court Order: Madhya Pradesh High Court Holds Execution Plea Time-Barred
The Madhya Pradesh High Court on Friday ruled that the doctrine of merger does not apply to arbitral awards, meaning the 12-year limitation period for executing an award runs from the date it becomes enforceable and not from a subsequent court order.“No appeal is provided against arbitral award, and therefore, no question of merger of arbitral award into any order passed by the civil court is made out. It cannot be accepted that the award merged into the order passed by civil court. These are...
UK Court Of Appeal Allows UAE Investor To Arbitrate Claims Against India Over Andhra Pradesh Bauxite Project
The Court of Appeal of England and Wales has dismissed India's appeal against a ruling allowing Ras Al Khaimah Investment Authority (RAKIA) to pursue arbitration over the cancellation of a bauxite supply agreement for an alumina refinery project in Andhra Pradesh.The three-judge bench held that the Andhra Pradesh government's actions applied directly to RAKIA's investment in ANRAK Aluminium Limited, despite RAKIA holding only about 12% of the company's shares.“I therefore agree with the Judge...
Delhi High Court Appoints Local Commissioner In Aakash's ₹2.13 Crore Student Fee Dispute
The Delhi High Court on 16 October appointed a Local Commissioner to inspect and preserve financial and electronic records at Aakash Educational Services Limited's former franchise centre in Gangapur City, Rajasthan. Justice Vinod Kumar allowed Aakash's application under Section 9 of the Arbitration and Conciliation Act, 1996, following allegations that franchisee Vaibhav Gupta had failed to remit over Rs. 2.13 crore in student fees and obstructed Aakash's audit. The Bench held: “In view of...
Bombay High Court Restrains Developers From Dealing With Assets In ₹278 Crore Swan Corp Dispute
The Bombay High Court on 22 October restrained Subramanya Constructions and Developments Co. Limited and Prakruthi Infrastructure and Development Co. Limited from dealing with their assets in a Rs. 278 crore arbitration settlement dispute with Swan Corp Limited. A Bench of Justice Amit Borkar granted interim protection to Swan Corp Limited (formerly Swan Energy Limited), Cardinal Energy and Infrastructure Private Limited and Pegasus Ventures Private Limited, and directed the developers to...
Madras High Court Stops Tamil Nadu Maritime Board From Prematurely Terminating Shop Licence
The Madras High Court has recently restrained the Tamil Nadu Maritime Board from prematurely terminating a shop licence after it chose to allot the premises through negotiations despite the availability of an open tender process, only to seek fresh bids before the agreed tenure expired.Justice K. Kumaresh Babu observed that the Board could not rely on a policy that was already available when it granted the original allotment as a reason to terminate the arrangement before its expiry.“It is to be...
Bombay High Court Dismisses ₹29.36 Lakh Arbitration Plea For Failure To Follow Agreed Mediation Process
The Bombay High Court on 29 September held that courts cannot appoint an arbitrator without ensuring compliance with the pre-arbitration procedure agreed upon by the parties. Justice Amit Borkar dismissed an application filed by Wellgroomed Venture against Dr. Kamat's Hospital under Section 11 of the Arbitration and Conciliation Act, 1996, seeking appointment of an arbitrator to resolve a dispute over alleged maintenance and assessment dues of Rs. 29.36 lakh. The Bench observed: ...
Bombay High Court Allows Five Doctors' Appeal In 21-Year Property Dispute, Finds Prima Facie Fraud
The Bombay High Court on 21 October set aside a Single Judge's order refusing interim protection to five doctors who invested Rs. 60 lakh in commercial premises under a 2005 agreement, holding that the developers had prima facie attempted to cheat them by retaining their investment for over 21 years without delivering the promised property. A Division Bench comprising Justices A.S. Gadkari and Kamal Khata allowed the appeal filed by Dr. Devidas R. Sheregar, Dr. Alka Jain, Dr. Manoj S. Aithal,...
Delhi High Court Sets Aside ₹2.60 Cr. Damages Award Against Som Shiva Impex For Lack Of Loss Assessment
The Delhi High Court on 13 October set aside a Rs. 2.60 crore arbitral damages award against Som Shiva Impex Limited in favour of the National Research Development Corporation (NRDC), holding that damages for breach of contract cannot be awarded without assessing the actual loss suffered. Justice Subramonium Prasad held that the arbitrator had rejected NRDC's royalty claim because the technology was never commercialised but had nevertheless calculated damages using the unpaid royalties without...