Unexplained Delay Bars Exclusion Of Time Spent Before Wrong Forum From Limitation Period: MP High Court

The Madhya Pradesh High Court has held that a party cannot seek exclusion of time spent before a wrong forum under the Limitation Act if it fails to explain why it did not challenge the arbitral award within the prescribed period Justice Deepak Khot delivered the ruling while dismissing an appeal filed by Ashish and others against the National Highways Authority of India (NHAI). The Court upheld an order rejecting their challenge to an arbitral award as barred by limitation. The court observed...

Sub-Contract Dispute Clause Bars Import Of Arbitration Clause From Principal Contract: Gauhati HC

The Gauhati High Court on 3 June held that a sub-contract that contains its own specific dispute resolution clause cannot import the arbitration clause from the principal contract, even if it describes the principal contract as “part and parcel” of the sub-contract. The Bench of Justice Sanjay Kumar Medhi dismissed a petition filed by Yumiko Global Infra Tech Private Limited (Yumiko) against PRL-Gepong JV (PRL) under Section 11(6) of the Arbitration and Conciliation Act, 1996 seeking...

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...

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...