Unless Serious Allegations Of Fraud Are Established, Parties Cannot Be Denied Reference To Arbitration U/S 8 Of A&C Act: Bombay HC

The Bombay High Court bench of Justice N. J. Jamadar has held that the dispute cannot be refused referral to arbitration under Section 8 of the Arbitration and Conciliation Act, 1996 (Arbitration Act) based solely on mere allegations of fraud simpliciter, unless serious allegations of fraud that go to the root of the partnership deed containing the arbitration clause are established. Brief Facts: The Petitioner-Defendant No.2, Respondent No.3-Defendant No.3 and Narayan Tiwari, the...

Although Injunction Against Invocation Of Guarantee Cannot Be Granted, Court Can Grant Interim Protection If Prima Facie Case Is Established: Calcutta HC

The Calcutta High Court bench of Justice Shampa Sarkar has held that although an injunction against the invocation of a bank guarantee cannot normally be granted, if the petitioner establishes a prima facie case, the court should not hesitate to grant interim protection under Section 9 of the Arbitration and Conciliation Act, 1996 (Arbitration Act). Brief Facts: Gallant Equipment Pvt Ltd (Petitioner) and Rashmi Metaliks Ltd (Respondent) entered into a “Goods & Service Order”...

Arbitral Tribunal Can Proceed Against Party Though They Weren't Served With S.21 Notice Or Made Party In S.11 Application : Supreme Court

The Supreme Court recently observed that not being served with the notice invoking arbitration under Section 21 of the Arbitration and Conciliation Act, and not being made a party in the Section 11 application (for appointment of arbitrator), are not sufficient grounds to hold that a person cannot be made party to arbitral proceedings. "A notice invoking arbitration under Section 21 of the ACA is mandatory...and it is a prerequisite to filing an application under Section 11. However, merely...

Statutory Protection Under Maharashtra Rent Control Act Can't Be Circumvented By Invoking Arbitration Petition To Seek 'Speedy Eviction': High Court

The Bombay High Court bench of Justice Somasekhar Sundaresan has held that the jurisdiction under Section 9 of the Arbitration and Conciliation Act, 1996 (“the Act”) cannot be invoked to circumvent the statutory protection afforded to tenants under the Maharashtra Rent Control Act, 1999 (“Rent Act”). Interim measures under Section 9 must aid arbitral proceedings and cannot override or conflict with special statutory mechanisms under the Rent Act for eviction and redevelopment. The Court ...

[Arbitration Act] No Automatic Stay On Award Upon Filing Of Appeal U/S 34 Within Time: Allahabad High Court Reiterates

Following the judgment of the Supreme Court in Board of Control for Cricket in India Vs. Kochi Cricket Pvt. Ltd. and others and Hindustan Construction Company Limited and others Vs. Union of India and others, the Allahabad High Court has reiterated that automatic stay on the operation of arbitral award is not granted merely by filing appeal under Section 34 of the Arbitration and Conciliation Act, 2016.Section 36 of the Arbitration and Conciliation Act, 2016 introduced vide the amending act of...

While Disputes U/S 31 Of Specific Relief Act Are Arbitrable, Arbitral Awards Are Not Binding On Third Parties: Calcutta HC

The Calcutta High Court bench of Justice Gaurang Kanth has held that although disputes relating to the cancellation of written instruments under Section 31 of the Specific Relief Act, 1963 are arbitrable, the resulting awards are binding only on the parties involved and not on third parties who were not part of the arbitral proceedings. Brief Facts: The present petition has been filed by Jagat Singh Manot (petitioner) to challenge the letter dated 22.04.2024 issued by Kolkata ...

Delivering Arbitral Award To Power Of Attorney Holder Satisfies Requirement Of 'Delivery' U/S 31(5) Of A&C Act: Delhi High Court

The Delhi High Court bench of Justices Navin Chawla and Ravinder Dudeja has observed that the delivery of a copy of the Award to the Power of Attorney holder, who has also represented the party in the arbitral proceedings, shall be a due compliance with Section 31(5) of the A&C Act. Facts Disputes arose between the parties in relation to the Collaboration Agreement dated 14.05.2001. A Sole Arbitrator was appointed by this Court vide its order dated 16.10.2005. The impugned...

Supreme Court Holds Chandigarh Authorities Liable For Delay In Film City Project, Directs Refund Of 47.75 Crores To Successful Bidder

In a recent judgment, the Supreme Court largely upheld an arbitral award passed in favor of a company engaged by the Chandigarh Administration to establish a Multimedia-cum-Film City in the Union Territory, holding the authorities liable to refund a forfeited bid amount of Rs.47.75 crores.A bench of Justices BV Nagarathna and Satish Chandra Sharma delivered the verdict, being of the view that the Punjab and Haryana High Court wrongly set aside the arbitral award.It opined that though time was of...

Arbitration Clause Cannot Be Considered Binding If Mandatory Arbitration Reference Is Missing: Calcutta High Court

The Calcutta High Court bench of Justice Shampa Sakar has held that if a clause in an agreement gives the parties discretion to refer the matter to arbitration after disputes have arisen, it cannot be construed as a binding arbitration agreement. Such invocation of the arbitration clause requires fresh consent of the other party before the matter can be referred to arbitration. Brief Facts: The lease deed was executed between Jiten Mondal, the respondent's predecessor (husband), and ...

Substitution Of Arbitrator Can't Be Allowed When Petitioner Voluntarily Withdraws From Arbitral Proceedings: Calcutta High Court

The Calcutta High Court bench of Justice Shampa Sarkar has held that an application under Section 15 of the Arbitration and Conciliation Act, 1996 (Arbitration Act), seeking substitution of the arbitrator, cannot be allowed when the petitioner had voluntarily withdrawn from the arbitral proceedings and failed to participate despite being given ample opportunities, especially after a long lapse of time Brief Facts: Disputes arose under a work order containing an arbitration clause...

Mandate Of Arbitration U/S 29A Of Arbitration Act Can Be Extended By High Court Only When Arbitrator Is Appointed By It: Telangana High Court

The Telangana High Court bench of Justice Moushumi Bhattacharya and Justice B.R.Madhusudhan Rao has held that when an arbitrator is appointed by the High Court under Section 11(6) of the Arbitration and Conciliation Act, 1996 (Arbitration Act) in a domestic arbitration, the mandate of the arbitrator can be extended by the High Court only under Section 29A of the Arbitration Act and not by any other courts inferior to the High Court. Brief Facts: The present civil revision petition has...

Writ Petition Cannot Be Construed As “Earlier Application” U/S 42 Of Arbitration & Conciliation Act: Delhi High Court

The Delhi High Court Bench of Justice Manoj Kumar Ohri has observed that a writ petition cannot be construed as an "earlier application" under Section 42 of the Arbitration Act to decide jurisdiction as the very nature of a writ petition is to challenge an administrative action or a legal decision, not to initiate arbitration proceedings.Section 42 specifically refers to an "application made in a Court with respect to an arbitration agreement," which implies an initial application to...