“Every Day's Delay” Rule Not Pedantic, Bureaucratic Delay May Be Condoned: Himachal Pradesh High Court

The Himachal Pradesh High Court on 22 May held that Courts must adopt a common-sense approach while considering delay condonation applications filed by government authorities under Section 34 of the Arbitration and Conciliation Act, 1996, and that bureaucratic decision-making processes may constitute sufficient cause where the explanation is bona fide. A Division Bench comprising Chief Justice Gurmeet Singh Sandhawalia and Justice Bipin Chander Negi allowed the appeal filed by the State of...

Delhi High Court Refers 'Intertwined' Builder JV, Settlement And Mortgage Deed Disputes To Arbitration Without Fresh Notice

The Delhi High Court has referred to arbitration a fresh round of disputes between Jiangxi Construction Engineering Group Co. Ltd. and Varaha Infra Ltd., holding that claims arising from their joint venture agreements, settlement arrangement, consent arbitral award and mortgage deeds were too closely connected to be separated. Justice Mini Pushkarna appointed former Delhi High Court judge Justice (Retd.) Jayant Nath as sole arbitrator to adjudicate the disputes between the parties. The court...

Courts Must Call For Arbitral Records Before Deciding Challenge To Arbitral Award: Sikkim High Court

The Sikkim High Court has reiterated that a court hearing a challenge to an arbitral award cannot decide the matter without first calling for the records of the arbitral tribunal. A Division Bench of Chief Justice A. Muhamed Mustaque and Justice Bhaskar Raj Pradhan observed: “The Court entertaining the application under Section 34 is required, imperatively, to look into the records of the Arbitral Tribunal to satisfy whether any grounds under Section 34 have been made out or not. Without...

Winding Up Of Company Will Not Automatically Stay Arbitral Proceedings Against Promoters: Kerala High Court

The Kerala High Court has held that a company's winding up does not automatically halt arbitral proceedings or shield its promoters from contractual obligations undertaken in their personal capacity. Justice T.R. Ravi held, “Sections 278 and 279 of the Companies Act can have operation only with regard to claims against the Company and a winding up order will not automatically operate as a stay of further proceedings before the Arbitrator. ” It added, "The petitioner sought to place reliance on...

Tenancy Disputes Under 2001 Act Non-Arbitrable, Rent Tribunal Has Exclusive Jurisdiction: Rajasthan HC

The Rajasthan High Court on 22 May held that landlord–tenant disputes governed by the Rajasthan Rent Control Act, 2001 are non-arbitrable and fall within the exclusive jurisdiction of the Rent Tribunal, even where the lease agreement contains an arbitration clause. A Division Bench of Justices Arun Monga and Sandeep Shah, however, set aside the Commercial Court's order and restored the arbitral award in favour of the legal representatives of late Ramesh Chandra Patel against City Pulse...

Delhi High Court Upholds ₹1.22 Crore Award Against Delhi Tourism & Transportation Development Corporation

The Delhi High Court on 21 April dismissed Delhi Tourism & Transportation Development Corporation's challenge to a majority arbitral award in favour of contractor Gammon India Ltd in a dispute over escalation payments under a construction contract for a bridge project over the Yamuna river. Justice Harish Vaidyanathan Shankar held that the arbitral tribunal's interpretation of the contract was a plausible one and did not warrant interference. DTTDC had entered into the contract with Gammon...

Power To Correct Clerical Errors In Arbitral Awards Can't Be Used To Substantially Modify Them: Supreme Court

The Supreme Court on Tuesday reiterated that the limited power to correct clerical, computational, or typographical errors in an arbitral award cannot be used to substantially modify it by replacing simple interest with compound interest. Setting aside Gujarat High Court and Commercial Court orders, the Court held that Saryu Plastics Pvt. Ltd. was entitled only to simple interest at 21.675% during the pendency of arbitration, reversing a modification that had increased Gujarat Water Supply and...

Denial Of Compensation Under A Particular Head Under NH Act Can Be Arbitrated: Rajasthan High Court

The Rajasthan High Court has held that the expression “amount determined” under the National Highways Act includes even cases where compensation is completely denied under a particular head, allowing landowners to challenge such decisions before an arbitrator. Justice Sanjeet Purohit ruled, “The expression 'amount determined' cannot be confined to the narrower meaning of 'amount quantified.' Determination is a process whereby a claim is examined in light of the material available on record and...

Delhi High Court Denies Interim Relief To Buyer As Developer's Claims Fail In Arbitration

The Delhi High Court has refused interim protection to a purchaser seeking to restrain the creation of third-party rights and maintain status quo over the first floor of a Greater Kailash-I property, holding that the claim could not survive once the developer's claimed authority to create such rights stood rejected in arbitrationJustice Harish Vaidyanathan Shankar held that the buyer's claim was entirely derivative of the Collaboration Agreement executed between developer Aditya Bhutani and the...

Delhi High Court Refuses Interim Relief To Commercial Space Licensee Against Delhi Metro Rail Corporation

The Delhi High Court has refused interim relief to QC One Solutions Pvt. Ltd. against Delhi Metro Rail Corporation's termination of a licence agreement for commercial spaces at three metro stations. The court prima facie found that the company had repeatedly defaulted on payment of licence fees and electricity dues despite multiple opportunities to cure the breaches. Justice Vikas Mahajan, in an order passed on May 20, held that QC One Solutions had failed to establish a prima facie case for...

Extension Without Liquidated Damages Does Not Bar Damages Or Bank Guarantee Invocation: Delhi HC

The Delhi High Court on 25 May held that extension of time without levy of liquidated damages does not, by itself, prevent a party from later invoking contractual remedies, including liquidated damages and enforcement of an unconditional bank guarantee, where disputes relating to delay and termination require arbitral adjudication. A Bench of Justice Mini Pushkarna declined relief to Kalpataru Projects International Limited and refused to grant interim protection under Section 9 of the...

Delhi HC Sets Aside ₹55 Lakh Arbitral Award To Budhiraja Electricals, Rejects Clause 10CC-Based Damages

The Delhi High Court on 22 May set aside arbitral awards granting Rs. 38.96 lakh towards escalation and Rs. 16.23 lakh towards loss of profits to Budhiraja Electricals in its dispute with the Public Works Department, Government of NCT of Delhi. Justice Harish Vaidyanathan Shankar held that an arbitral tribunal cannot use Clause 10CC of the General Conditions of Contract as a substitute for proof of actual loss once it finds the clause inapplicable to the extended period, and reiterated that...