Informal Association Resolution Not Arbitral Award, Cannot Operate As Res Judicata: Telangana High Court

The Telangana High Court on 8 June 2026 held that an unproven resolution stated to have been passed by a trade association cannot be treated as an arbitral award and cannot operate as res judicata to bar statutory arbitration proceedings under the Arbitration and Conciliation Act, 1996. Justice Suddala Chalapathi Rao dismissed an appeal filed by J. Srisailam Reddy and another and upheld the arbitral award in favour of Vishnu Rice Mill, affirming the order of the District Court under Section 37...

Self-Created Urgency No Ground To Skip Pre-Institution Mediation: Telangana High Court

The Telangana High Court has held that a party cannot avoid the mandatory pre-institution mediation process in a commercial dispute by claiming urgency that is of its own making. A Division Bench of Justices Nagesh Bheemapaka and Vakiti Ramakrishna Reddy dismissed a plea by Trident Chemphar Limited. The company had challenged an order returning its proposed suit against ongoing ICC arbitration proceedings for failure to first undergo pre-institution mediation. “The urgency, if any, is thus of...

Financial Hardship Alone Cannot Justify Payment Of Disputed Claim: Bombay High Court

The Bombay High Court on Tuesday held that financial hardship by itself cannot justify directing payment of a disputed claim at an interim stage. Refusing to order Ullu Digital Ltd. to secure or deposit about ₹2.58 crore claimed by the producer of the web series 'KINK 2', the Court observed that treating financial pressure as a sufficient reason for payment would blur the distinction between admitted and contested claims. Justice Amit Borkar held that the material on record did not warrant...

Arbitral Tribunals Must Respect Contract Terms While Ensuring Business Efficacy: Bombay High Court

The Bombay High Court on 12 June held that Section 28(3) of the Arbitration and Conciliation Act, 1996 does not permit arbitral tribunals to ignore contractual terms but requires them to interpret the contract in a manner that gives effect to business efficacy. A Bench of Justice Somasekhar Sundaresan partly allowed petitions filed by the Maharashtra Public Works Department (PWD) and upheld the arbitral award dated 14 April 2023 in favour of Khare and Tarkunde Infrastructure Pvt Ltd (KTIPL) on...

Stock Exchange Bye-Laws Cannot Compel Arbitration Of Fraud Disputes: Bombay High Court

The Bombay High Court on 9 June held that although stock exchange bye-laws carry statutory force, they cannot compel arbitration of every shareholder dispute, particularly where serious allegations of fraud arise and the dispute falls outside the scope of arbitrability. Justice Somasekhar Sundaresan allowed the challenge and quashed an arbitral award dated 6 August 2024, which had directed ABB India Ltd to restore 1,550 ABB shares and 310 Hitachi Energy India shares to shareholder Sunil Hariram...

Partial Settlement On Interest In Arbitration Not Binding On All Claims: Delhi High Court

The Delhi High Court on 26 May held that a partial settlement reached during arbitral proceedings fixing interest for specific claims cannot bind all pending claims and counter-claims, and the Arbitral Tribunal retains full discretion under Section 31(7)(b) of the Arbitration and Conciliation Act, 1996. A Bench of Justice Jasmeet Singh dismissed cross petitions under Section 34 of the Act arising from a dispute between Atlanta Infra Assets Ltd. and the National Highways Authority of India...

High Court Cannot Review Section 11 Arbitrator Appointment After Becoming Functus Officio: Madras HC

The Madras High Court on 8 June held that once it appoints an arbitrator under Section 11 of the Arbitration and Conciliation Act, 1996, it becomes functus officio and cannot later review or invalidate that appointment because the Act does not confer such power. Justice Abdul Quddhose dismissed review applications filed by Maavadi Soft Tech Ventures (India) Pvt. Ltd., True Value Homes India Private Limited and N. Ravichandran against Anir Tech Park Private Limited, refusing to revisit the...

Courts Cannot Grant Unconditional Stay Of Arbitral Money Awards Without Exceptional Case: MP High Court

The Madhya Pradesh High Court on 27 May held that courts cannot grant an unconditional stay on the execution of an arbitral money award unless the award is vitiated by fraud or corruption or the award debtor establishes an “exceptional case”. A Division Bench of Justices Vivek Jain and Ajay Kumar Nirankari allowed the petition filed by Lite Bite Foods Pvt. Ltd., set aside the District Court's order granting an unconditional stay in favour of the Airports Authority of India (AAI), holding that...

SC Issues Notice on Afghanistan Cricket Board's Plea Seeking Arbitrator In Content Monetisation Dispute With Indian Firm

The Supreme Court on Tuesday issued notice in a petition filed by the Afghanistan Cricket Board seeking appointment of a sole arbitrator in a dispute with Mumbai-based Nimayate Corporate Solutions Pvt Ltd over alleged non-payment of dues under a content monetisation agreement. The matter was taken up by a Bench of Chief Justice Surya Kant and Justice V. Mohana. According to the plea, the Afghanistan Cricket Board and Nimayate Corporate Solutions entered into a Content Monetisation Agreement on...

Kerala HC Stays NH 66 Compensation Arbitration, Prima Facie Questions District Collector's Eligibility As Arbitrator

The Kerala High Court has recently stayed an order of the Ernakulam District Collector and directed that arbitration proceedings concerning compensation for land acquired for the widening of National Highway 66 remain in abeyance. The court found that the landowner had made out a strong prima facie case in challenging the Collector's continuation as arbitrator in the dispute. Justice C. Jayachandran passed the interim order while considering a writ petition filed by a landowner whose...

Arbitration Plea Must Be Filed Before Leave-to-Defend Application In Summary Suit: Madras High Court

The Madras High Court has recently held that a defendant in a summary suit cannot seek reference of the dispute to arbitration after first filing an application for leave to defend, ruling that such an application constitutes the first statement on the substance of the dispute.A Division Bench of Justices P. Velmurugan and K. Govindarajan Thilakavadi rendered the ruling while dismissing an appeal filed by ETA General Private Limited against an order refusing to refer a USD 19 million recovery...

Interim Relief Under Arbitration Act Cannot Extend Rights Beyond Parties' Agreement: Bombay High Court

The Bombay High Court recently reiterated that interim protection in arbitration matters is not meant to extend rights beyond what parties have agreed between themselves. The court made the observation while refusing Oil and Natural Gas Corporation Ltd.'s request to continue a USD 14.82 million bank guarantee furnished by Swiber Offshore Construction Pte. Ltd. The request came after an arbitral tribunal rejected ONGC's liquidated damages claim and directed return of the security. A...