Arbitral Award Not Signed By All Members Of Tribunal Can Be Set Aside If Reasons For Omission Of Missing Signature Are Not Stated: Delhi High Court

The Delhi High Court Bench of Justice Prateek Jalan has observed that the signature of all members of the arbitral tribunal should be available on the award as the signing of an award is not a ministerial act but a substantive requirement. It was further observed that if the signature of any member of the tribunal is omitted, then the reasons should be stated as this requirement is referable to the need to ensure that all members of the tribunal have has an opportunity to participate in...

Arbitration Weekly Round-Up [17th February-23rd February 2025]

High Courts Andra Pradesh High Court: Limitation For Appointment Of Arbitrator Commences From Date Of Failure To Comply With Requirements In Notice Invoking Arbitration: AP High Court Case Title: Alliance Enterprises v. Andhra Pradesh State Fiber Net Limited (APSFL) Case Number: Arbitration Application No. 48 of 2023 The Andhra Pradesh High Court bench of Chief Justice Dhiraj Singh Thakur has held that the limitation period for filing an application seeking appointment of...

Contractual Silence In Arbitration: Interplay Of Business Efficacy And Commercial Common Sense

Accuracy in the preparation of dispute resolution clauses in the hurly-burly world of business contracts is not only desirable but becomes a necessity. Arbitration, as a preferred mechanism for the resolution of commercial disputes, promises efficiency, confidentiality, and finality. But even the most advanced contracts can be marred by drafting oversights, leaving one to wonder whether the parties ever really meant to arbitrate. Can scattered references to arbitration, spread throughout an...

MSMED Act Will Prevail Over Arbitration Act In Disputes Pertaining To A Party Which Is An MSME: Delhi High Court

The Delhi High Court Bench of Justice Manoj Kumar Ohri has reiterated that the Arbitration and Conciliation Act, 1996 is a general law governing the field of arbitration whereas the MSMED Act, 2006 governing a very specific nature of disputes concerning MSMEs, is a specific law and being a specific law would prevail over Arbitration and Conciliation Act, 1996. Background Facts The Petitioner had engaged the Respondent for providing certain IT services in a project awarded to the...

Delhi High Court Dismisses Challenge Against Arbitral Award Rejecting Counterclaim For Failure To Raise Timely Objections On Quality Of Goods

The Delhi High Court bench of Justice Manoj Kumar Ohri has upheld an Arbitral award stating that objections regarding the quality of goods must be raised within a reasonable time as per section 42 of the Sale of Goods Act, 1930. The court concurred with the decision of the Arbitral Tribunal that since the Petitioner failed to dispute the quality of supplies within a reasonable time, its counterclaims were rightly dismissed. Brief Facts: Unison Hotels Pvt. Ltd. (Petitioner) ...

Named Arbitrator Cannot Be Replaced Unless There Is Evidence Of Partiality Or Bias Against Them: Andhra Pradesh HC

The Andhra Pradesh High Court bench of Justice Dhiraj Singh Thakur has held that the request for seeking appointment of an independent arbitrator other than the named arbitrator cannot be entertained if there is no evidence to show that the named arbitrator would act in a partial or biased manner. ' Brief Facts: M/s. Kranthi Grand DKNV Hospitalities (Applicant) entered into a Sub-Lease/Agreement with respondent No.1 – M/s. Manasa Estates and Hospitality Pvt. Ltd., who was a lessee of...

Limitation For Appointment Of Arbitrator Commences From Date Of Failure To Comply With Requirements In Notice Invoking Arbitration: AP High Court

The Andhra Pradesh High Court bench of Chief Justice Dhiraj Singh Thakur has held that the limitation period for filing an application seeking appointment of arbitrator under Section 11 (6) of the Arbitration and Conciliation Act, 1996, commences only after a notice invoking arbitration has been issued by one of the parties and there has been either a failure or refusal on the part of the opposite party to make an appointment as per the procedure agreed upon between the parties. ...

[Arbitration Act] Referral Courts Can't Indulge In Enquiry Into Whether Claims Are Time-Barred: Calcutta High Court

The Calcutta High Court bench of Justice Shampa Sarkar has held that in an application under section 11 of the Arbitration and Conciliation Act, 996, it would not be proper for the referral court to indulge in an intricate evidentiary enquiry into the question of whether the claims raised by the petitioner were time-barred or not. “Courts, at the referral stage, can interfere only when it is manifest that the claims are expressly time barred and dead or when there are no subsisting...

Failure To Attach Impugned Arbitral Award Along With Section 34 Application Would Render Filing Non-Est: Delhi High Court

A full bench of Delhi High Court comprising of Justice Rekha Palli, Justice Navin Chawla and Justice Saurabh Banerjee while hearing a reference made by a single judge bench in Pragati Construction Consultants v. Union of India [FAO(OS)(COMM) 70/2024] held that if the party challenging an award u/s 34 of the A&C Act does not attach the impugned arbitral award with the Section 34 application, the filing will be considered "non-est." The Court further held that the filing of the ...

Arbitration Weekly Round-Up [10th February-16th February]

Supreme Court 'Oral Undertaking Falls Within Scope Of Arbitration Clause' : Supreme Court Upholds Award Against Husband For Operation In Wife's Demat Account Case Title: AC CHOKSHI SHARE BROKER PRIVATE LIMITED VERSUS JATIN PRATAP DESAI & ANR. Citation : 2025 LiveLaw (SC) 178 The Supreme Court today (February 10) held that an oral contract undertaking joint and several liability falls within the scope of an arbitration clause. Holding so , the Court affirmed an arbitral...

Calcutta High Court Upholds Arbitral Award Directing KMDA To Refund Amount Deposited By South City Projects Under MoU

The Calcutta High Court bench of Justices Harish Tandon and Madhuresh Prasad has held that findings of the Arbitrator based material cannot be interfered with within the limited scope of proceedings under section 37 of the Arbitration and Conciliation Act, 1996 (Arbitration Act). Brief Facts: The present appeal has been filed under section 37 of the Arbitration Act against an order passed by the court under section 34 of the Arbitraton Act by which the arbitral award in favor of...

Violates Public Trust Doctrine: Delhi HC Sets Aside Tribunal's Award Allowing RIL To Explore 'Migrated Gas' Without Express Permission

A Division Bench of the Delhi High Court, comprising of Justice Rekha Palli and Justice Saurabh Banerjee, while hearing an appeal under Section 37 of the A&C Act, set aside an arbitral award in favour of Reliance Industries Limited(RIL). The Court invoked the doctrine of 'public policy in India', 'public law' and 'Public Trust Doctrine' and observed that the findings of the Arbitral Tribunal (AT) which held that the RIL's breach of Production Sharing Contract (PSC) was not a material...