Executing Court Can Direct Award-Debtor To Deposit Decretal Amount In Court Until Petition U/S 34 Of Arbitration Act Is Disposed Of: P&H High Court

The Punjab and Haryana High Court bench of Justice Suvir Sehgal has held that executing court under section 36 of the Arbitration Act can direct the award debtor to deposit the decretal amount in the court registry till the disposal of the petition under section 34 of the Arbitration Act. The court also observed that while deciding an application under Section 36 (3) of the Arbitration Act, whereby stay has been sought by the judgment debtor, the merit of the objections filed under Section...

Procedural Orders Cannot Be Considered As Interim Award Or Challenged U/S 34 Of Arbitration Act: Delhi High Court

The Delhi High Court Bench of Justice Subramonium Prasad has held that a procedural order given by an Arbitral Tribunal, such as rejecting an application seeking impleadment of a party, does not qualify as an interim award. So, it cannot be challenged under Section 34 of the Arbitration and Conciliation Act, 1996. Brief Facts: The petition was filed under Section 34 of the Arbitration and Conciliation Act, 1996 challenging the order, by which an application under Order I Rule 10...

Well Reasoned Award Cannot Be Interfered With Under Section 37 Of Arbitration Act: Delhi High Court

The Delhi High Court bench of Justices Vibhu Bakhru and Tara Vitasta Ganju affirmed that Courts should not customarily interfere with Arbitral Awards that are well reasoned, and contain a plausible view.Judges, by nature, may incline towards using a corrective lens, however, under Section 34 of the Arbitration Act, this corrective lens is inappropriate especially under Section 37 of the Arbitration Act. It was held that the error in interpreting a Contract is considered an error within...

When Multiple Agreements Are Not Interconnected, Arbitration Clause In Any One Agreement Can't Justify Referring All Disputes To Arbitration: Telangana HC

The Telangana High Court bench of Chief Justice Alok Aradhe and Justice Sreenivas Rao, affirmed that where multiple agreements are interconnected and form part of a single commercial transaction then only the presence of an arbitration clause in one or more agreements can justify referring all disputes, involving all agreements and parties, to arbitration. This is true even if some agreements lack an arbitration clause. In this case, the court found that agreements were not interconnected.Brief...

S.29A Arbitration | 'Sufficient Cause' To Extend Time For Award Should Be Interpreted To Facilitate Effective Dispute Resolution : Supreme Court

Extending the time for an arbitral tribunal to pass its award, the Supreme Court recently observed that extension can be allowed even after the expiry of the statutory period and the phrase "sufficient cause" under Section 29A of the Arbitration and Conciliation Act should take color from the underlying purpose of the arbitration process (ie facilitating effective dispute resolution)."The meaning of 'sufficient cause' for extending the time to make an award must take colour from the underlying...

Calcutta High Court Injuncts State Govt, WBIDC From Disposing Of Property In KMC Area Over Essex Arbitral Award Case

The Calcutta High Court bench of Justice Shampa Sarkar has injuncted the West Bengal Government and WBIDC from disposing of subject matter of the Award in the execution petition filed by the award-holder in Essex case.Background:This execution petition stems from a dispute under a Share Purchase Agreement (SPA) which was signed between between Essex Development Investments (Mauritius) Limited (Essex), the Government of West Bengal (GoWB), and West Bengal Industrial Development Corporation...

Himachal Pradesh High Court Reiterates Limited Scope Of Court Intervention U/S 34 & 37 Of Arbitration & Conciliation Act

The Himachal Pradesh High Court bench of Justice Virender Singh has reiterated that the scope of interference with arbitral awards under Sections 34 and 37 of the Arbitration and Conciliation Act, 1996, is narrow and not akin to appellate jurisdiction. Courts may only interfere if the award exhibits patent illegality or arbitrariness that goes to the root of the matter.Brief Facts:The Government of India, by a notification under Section 3(A) of the National Highways Act, 1956, acquired land in...

Award In Which Damages Are Awarded In Absence Of Proven Loss Or Injury Can Be Set Aside U/S 34 On Grounds Of Patent Illegality: Delhi HC

The Delhi High Court bench of Justices Vibhu Bakhru and Sachin Datta has held that awarding damages by Arbitrator in the absence of proven injury or loss qualifies to be a patent illegality under section 34 of the Arbitration Act. Such an award is liable to be set aside under section 34..Brief FactsIndian Oil Corporation Ltd. (hereafter IOCL) has filed the present intra court appeal under Section 37 of the Arbitration and Conciliation Act, 1996 (hereafter the A&C Act) impugning an order...

S.12(5) Of Arbitration Act Would Be Applicable To Arbitral Proceedings Which Commenced Before 2015 Amendment Act: P&H High Court

The Punjab and Haryana High Court bench of Justice Suvir Sehgal has held that the provision of Section 12(5) of the Arbitration Act would applicable to arbitral proceedings which were initiated prior to 2015 Amendment came into force and continued thereafter.Brief FactsThis petition has been filed under Section 11 of the Arbitration and Conciliation Act, 1996 (for short 'the Arbitration Act') for constitution of an independent and impartial Arbitral Tribunal.A bid submitted by the petitioner for...

Arbitration Weekly Digest 11th November-17 th November 2024

Supreme Court S. 11(6) A&C Act | Referral Courts Should Limit Its Enquiry To Prima Facie Existence Of Arbitration Agreement : Supreme Court Case Title: GOQII TECHNOLOGIES PRIVATE LIMITED VERSUS SOKRATI TECHNOLOGIES PRIVATE LIMITED, Citation : 2024 LiveLaw (SC) 891 In a recent decision, the Supreme Court reiterated that the referral courts under Section 11(6) of the Arbitration & Conciliation Act, 1996 (“Act”) should refrain from conducting an in-depth factual analysis of...

Arbitration Clause From Another Contract Can Be Incorporated Into Contract Only By Specific Reference: Delhi High Court

The Delhi High Court bench of Justice Subramonium Prasad affirmed that the arbitration clause from another contract can be incorporated into the contract when there is a clear intention that arbitration clause contained in another contract would also be incorporated in the contract by which the disputes would be resolved. Brief Facts The present petition has been filed under Section 11(6) of the Arbitration and Conciliation Act, 1996 by the Petitioner seeking appointment of an...

Court's Supervisory Role Over Arbitral Proceedings Would Be Determined As Per CPC If No Neutral Location Is Specified: Delhi High Court

The Delhi High Court bench of Justice Jasmeet Singh affirmed that if there is a neutral location specified in the contract data, that location would be the place of arbitration and the court having supervisory jurisdiction over the place would have jurisdiction. If no such location is specified, the provisions of the CPC from sections 16 to 20 would be attracted for determining the supervisory jurisdiction of the court.Brief FactsThis is a petition filed under Section 11 of the Arbitration and...