Supreme Court Reiterates Narrow Scope Of Interference Under Section 37 Arbitration Act

The Supreme Court reiterated that in appeal under Section 37 of the Arbitration and Conciliation Act, the Court has a narrower scope to review the arbitral award if the award has already been upheld under Section 34 (application for setting aside arbitral awards). Reliance was placed on the recent decision in Larsen Air Conditioning and Refrigeration Company vs Union of India, wherein the Court had said:“The limited and extremely circumscribed jurisdiction of the court under Section 34 of the...

Arbitration Weekly Round-Up [27th January - 2nd February 2025]

Supreme Court Arbitration Act | Appellate Courts Can't Reassess Awards, Must Limit Enquiry On Public Policy Breach : Supreme Court Case Title: SOMDATT BUILDERS –NCC – NEC(JV) VERSUS NATIONAL HIGHWAYS AUTHORITY OF INDIA & ORS. Citation : 2025 LiveLaw (SC) 115 The Supreme Court reaffirmed that arbitral awards should only be interfered with in cases of perversity, violation of public policy, or patent illegality. It emphasized that appellate courts cannot reassess the...

Executing Courts Can't Annul Arbitral Awards Solely On Ground Of Unilateral Appointment Of Arbitrator: Madras High Court

The Madras High Court bench of Justice N. Sathish Kumar has observed that the issue of ineligibility of the arbitrator cannot be raised during the pendency of the execution proceedings. The court held that the Executing Courts cannot suo motu dismiss the Execution Petition(s) solely on the ground of unilateral appointment of an arbitrator. The court held that the executing court cannot suo motu annul the award when a party to the agreement did not challenge the award on the ground of...

Mere Existence Of Arbitration Clause In Agreement Does Not Oust Jurisdiction Of Civil Court To Entertain Suit: Gauhati High Court

The Gauhati High Court bench of Justice Malasri Nandi has held that merely because there is an arbitration clause providing for referring the dispute and the claim to the arbitration, the civil court's jurisdiction is not barred but the same is subject to Section 8 of the Arbitration Act, 1996. Brief Facts An agreement was entered into between the plaintiffs and the defendants under which the defendants undertook to construct flats for the plaintiffs. The plaintiffs requested the...

Appeal In Commercial Dispute Arising From Arbitration Act Must Be Filed Before Commercial Appellate Court, Not HC: Orissa High Court

The Orissa High Court bench of Justice S.K. Panigrahi has held that a plain reading of Sections 6 and 10(3) of the Commercial Courts Act, 2015, leads to the conclusion that the appropriate 'court' to consider a commercial dispute, even if it arises under the Arbitration and Conciliation Act, would be the commercial court and an appeal would, therefore, lie only before the Commercial Appellate Court being the District Court. Brief Facts: The appellant is the owner of 4 acres 875...

Writ Petition Maintainable If Arbitrator Refuses To Entertain Application U/S 3G(5) Of National Highways Act: Kerala High Court

The Kerala High Court bench of A. Muhamed Mustaque and S. Manu JJ. while hearing a writ petition has held that when an arbitrator appointed by the Central Government refuses to entertain an application u/s 3G(5) of the National Highways Act, 1956, the Courts can entertain a petition under Article 226 to the limited extent of referring the dispute to arbitration. Section 3G(5) places a statutory obligation upon the District Collector, who acts as an arbitrator, to receive applications...

Notice To Appoint Another Arbitrator To Continue Arbitration Proceedings Satisfies Mandate Of S.21Of A&C Act: Kerala High Court

The Kerala High Court bench of Justice Syam Kumar V.M., while hearing a Section 11 petition, has held that a notice to revive a stalled arbitration proceedings by appointing another arbitrator satisfies the mandate of Section 21 of the A&C Act. Facts: The petitioner and respondent were partners of a firm named Orchard Builders and Developers; the same was registered with the Registrar of Firms, and a copy of the acknowledgement of firm registration was issued by the Registrar's...

While Commercial Speech Falls Within Free Speech, Contract Prohibit Adverse Remarks: Bombay HC Imposes 90-Day Injunction On Wonderchef's Distributor

Observing that commercial speech is a part of 'free speech' guaranteed by the Constitution of India, the Bombay High Court imposed a 90-day injunction against an Australia-based distributor of Wonderchef Home Appliances, owned by Celebrity Chef Sanjeev Kapoor, from making any comments or communications which could harm the reputation of the company, due to a contractual clause preventing them from doing so.Single-judge Justice Somasekhar Sundaresan while imposing the injunction, also ordered...

Arbitration Cases Weekly Round-Up [20th January-26th January 2025]

Supreme Court Can HC Appoint Sole Arbitrator When Arbitration Clause Provides For Unilateral Appointment Of Arbitrator ? Supreme Court To Consider Case Detail : M/S R.S. CONSTRUCTION vs. BUILDING CONSTRUCTION DEPARTMENT SLP(C) No. 000979 - / 2025 The Supreme Court on Monday ( January 20) agreed to consider the issue of whether the High Court can appoint a sole arbitrator under the Arbitration and Conciliation Act 1996 if the arbitration agreement between parties provides for ...

[S.16 Arbitration Act] Jurisdiction Of Tribunal Cannot Be Challenged After Submission Of Defence: Allahabad High Court

The Allahabad High Court has held that as per Section 16(2) of the Arbitration and Conciliation Act, 1996, the jurisdiction of an arbitral tribunal cannot be challenged after submission of defence and that the arbitral tribunal is empowered to adjudicate on its own jurisdiction.The bench of Justice Siddhartha Varma and Dr. Justice Yogendra Kumar Srivastava held “Section 16 of the Arbitration and Conciliation Act, 1996 provides for challenge to the jurisdictional authority of the Arbitral...

Appointment Of Arbitrator In International Commercial Arbitration By HC Does Not Vitiate Award: Delhi High Court

The Delhi High Court Bench of Justice C. Hari Shankar has held that the appointment of the Arbitrator in an International Commercial Arbitration (“ICA”) by the Chief Justice of the High Court, does not vitiate the impugned award. The bench held that the objection to the appointment of the arbitrator should have been raised during the arbitration proceedings. Since the parties failed to do so, they were deemed to have waived their right to object. Brief Facts of the case: Cross...

Arbitration Act | Appellate Courts Can't Reassess Awards, Must Limit Enquiry On Public Policy Breach : Supreme Court

The Supreme Court reaffirmed that arbitral awards should only be interfered with in cases of perversity, violation of public policy, or patent illegality. It emphasized that appellate courts cannot reassess the merits of awards and must limit their inquiry to whether the award breaches Section 34(2)(b)(ii) of the Arbitration Act i.e., if the award is against the public policy of India.The bench comprising Justices Abhay S Oka and Ujjal Bhuyan was hearing the case where the dispute arose...