Vague Or Ambiguous Arbitration Notice Cannot Validly Commence Arbitral Proceedings: Calcutta High Court

The Calcutta High Court has recently held that arbitral proceedings cannot be validly commenced on the basis of a vague or ambiguous invocation notice that fails to clearly identify the arbitration agreement or clause relied upon, or is not shown to have been received by the opposing party. Justice Gaurang Kanth held, “The Section 21 notice is not a mere procedural formality, rather it is a jurisdictional prerequisite that marks the very commencement of arbitration proceedings.”He added,...

Delhi HC Refers JioStar-Absolute Legends Dispute Over Legends League Cricket Media Rights To Arbitration

The Delhi High Court has referred disputes between JioStar India Pvt. Ltd. and Absolute Legends Sports Pvt. Ltd. over the media and commercial rights of the Legends League Cricket Masters T20 tournament to arbitration. It held that arbitral proceedings should not be unduly delayed once parties before the court agree to arbitrate. Justice Harish Vaidyanathan Shankar appointed Senior Advocate Kamal Nijhawan as sole arbitrator. The court also directed that franchise fee collections and ticket...

Arbitral Proceedings Cannot Be Terminated Twice; Recall Rejection Cannot Be Challenged As An Award: Delhi HC

Arbitral proceedings, once terminated, cannot be terminated a second time, the Delhi High Court has held while ruling that a party cannot treat an arbitrator's refusal to recall an earlier termination order as a fresh termination capable of challenge as an arbitral award. “Arbitral proceedings can be terminated only once and once terminated they cannot again be terminated a second time. The dismissal of the recall application could not, therefore, be treated as a second order terminating the...

Delhi High Court Halts Arbitration in Ramprastha–Rhine Power Dispute Pending Contempt Ruling

The Delhi High Court on 20 April upheld a Single Judge's order directing that arbitration proceedings between Ramprastha Promoters & Developers Pvt. Ltd. and investor Rhine Power Pvt. Ltd. remain stayed until the Court decides a pending contempt petition concerning alleged sale of fifteen flats in breach of a subsisting Section 9 injunction. A Division Bench comprising Chief Justice Devendra Kumar Upadhyaya and Justice Tejas Karia dismissed Ramprastha's intra-court appeal and affirmed the...

Allahabad High Court Refuses Writ Against MSME Council Award, Directs Recourse Under Section 34

The Allahabad High Court on 30 April reiterated that a writ petition challenging an ex-parte award passed by the Micro, Small and Medium Enterprises Facilitation Council under Section 18 of the Micro, Small and Medium Enterprises Development Act, 2006 is not maintainable when the statute provides an alternative remedy under Section 34 of the Arbitration and Conciliation Act, 1996. A Division Bench of Justices Saral Srivastava and Garima Prashad dismissed the writ petition filed by Shri Krishna...

Himachal Pradesh HC Says State Waived Arbitration Bid After Contesting L&T's Hydro Power Dispute For Seven Years

The Himachal Pradesh High Court has refused to send the ₹84 crore dispute between L&T Himachal Hydro Power Limited and the State government over the Reoli-Dugli hydropower project to arbitration. The court held that the State waited too long to seek that remedy after contesting the writ petitions for more than seven years. “As already noticed above, after the amendment carried out in the Act in the year 2015, if the party applies not later than date of submitting the first statement on the...

Pending IBC Proceedings Do Not Bar Arbitration Referral: Calcutta HC In SREI-Orissa Steel Dispute

The Calcutta High Court has referred a dispute between SREI group entities and Orissa Steel Expressway Private Limited to arbitration. It held that objections based on pending insolvency proceedings, allegations of fraud, and the status of a non-signatory claimant must be decided by the arbitral tribunal, not at the stage of appointing an arbitrator. “Thus, the question of arbitrability of the disputes and supremacy of IBC over the arbitral proceeding, will have to be decided by the learned...

Delhi HC Upholds Arbitral Award Limiting Payment To 25% For Cables Laid In Existing Ducts In BSNL Project

The Delhi High Court on Monday dismissed Sterlite Technologies Ltd.'s challenge to an arbitral award that limited its payment to 25% of the quoted service cost for optical fiber cables laid through other empty ducts already laid in the same multi-duct trench under a defence telecom project. Justice Avneesh Jhingan held that Clause 28(iii) of the purchase order independently governed the issue, regardless of the dispute over the applicability of the tender clause dealing with government ducts. ...

Delhi HC Sets Aside Disqualification Of Bid For Arbitration Centre Work Over 'Hyper-Technical' Objections

The Delhi High Court has set aside the disqualification of a company's technical bid for interior and fit-out work at the India International Arbitration Centre (IIAC), holding that “hyper-technical” objections relating to solvency certificates cannot defeat the objective of a fair and competitive tender process. A division bench of Justices Anil Kshetarpal and Amit Mahajan observed that the exclusion of bidders on a “myopic view or on hyper-technical grounds” would undermine the very...

Pre-Arbitration Mutual Discussion Clauses Are Directory, Not Mandatory: Delhi High Court

The Delhi High Court on 7 May held that failure to engage in pre-arbitral mutual discussions cannot bar invocation of an arbitration clause or appointment of an arbitrator under Section 11(6) of the Arbitration and Conciliation Act, 1996, since clauses requiring parties to first attempt amicable settlement are directory and not mandatory. Justice Mini Pushkarna appointed Advocate Isha Bhalla as sole arbitrator to adjudicate disputes between Orix Corporation India Ltd. and Peters Surgical India...

Gujarat High Court Says Arbitral Hearing Venue Cannot Alter Contractual Seat, Rejects Kirloskar's Plea

The Gujarat High Court on 8 May held that the juridical “seat” of arbitration cannot be shifted merely because arbitral proceedings were conducted elsewhere or because the arbitral tribunal recorded such a statement in procedural minutes, where the contract required any variation to be made only through a formal written amendment. A Division Bench of Chief Justice Sunita Agarwal and Justice D.N. Ray upheld a Commercial Court order refusing to shift the arbitration seat from Ankleshwar to...

Participation In Arbitration Cannot Validate Tribunal Not Constituted As Per Law: Calcutta High Court

Participation in arbitration proceedings cannot validate proceedings before a tribunal that was not constituted in accordance with law, the Calcutta High Court has held while setting aside an arbitral award in a dispute between Tata Steel Limited and MSP Sponge Iron Limited. “The participation of the petitioner before a forum which was not constituted as per law and did not have the jurisdiction to decide the dispute is inconsequential. A party who cannot act as an arbitrator, cannot also...