Madhya Pradesh High Court Holds ICA Award Void, Says Only CJI Can Appoint Arbitrator

The Madhya Pradesh High Court has held that an arbitral award against Ssangyong Engineering and Construction Company Ltd is a nullity in law, as the dispute was an international commercial arbitration and, under Sections 11(9) and 11(12) of the Arbitration and Conciliation Act, 1996, only the Chief Justice of India or a person or institution designated by him could appoint the arbitrator. The court noted that Ssangyong is a company incorporated in the Republic of Korea, and therefore the...

Arbitration Can Proceed Despite Parallel Criminal Proceedings In Private Disputes: Madhya Pradesh High Court

The Madhya Pradesh High Court recently reiterated that parallel criminal proceedings between private parties do not bar arbitration unless the allegations have a public character and proceeded to appoint an arbitrator in a dispute arising out of purchase orders between the parties. A single bench of Justice Vivek Jain emphasised, observing, “Be that as it may be, but it is settled in law that even where criminal proceedings are pending parallelly, then also arbitration proceedings can continue...

Kerala High Court Allows Arbitration In Insurance Dispute, Says Discharge Voucher Not A Bar

The Kerala High Court has recently allowed an arbitration request filed by Coco-Latex Exports Private Limited against National Insurance Company Limited, holding that execution of a discharge voucher towards full and final settlement does not bar invocation of arbitration. “Therefore, I find that objection raised by the respondent on the basis of the discharge voucher issued by the respondent is not sustainable,” the Court said. Justice S. Manu was dealing with a plea arising out of an...

Faridkot Courts, Not Bathinda, Have Jurisdiction In NH-15 Arbitration Dispute: Punjab & Haryana High Court

The Punjab and Haryana High Court has held that courts at Faridkot would have jurisdiction to entertain challenges to arbitral awards arising out of the NH-15 Amritsar–Bathinda project, and not courts at Bathinda, as the arbitral proceedings were conducted and the awards were passed at Faridkot.A coram of Justice Jasgurpreet Singh Puri observed that "Although the present cases pertain to statutory arbitration but it is an admitted fact that the arbitration has been conducted at Faridkot with the...

Delhi High Court Sets Aside Arbitral Award Against Indian Sugar Exim, Says Damages Cannot Be Based On Guesswork

The Delhi High Court has recently set aside an arbitral award passed against Indian Sugar Exim Corporation Ltd., holding that damages under Section 73 of the Indian Contract Act cannot be awarded on mere guesswork in the absence of proof of actual loss. Justice Avneesh Jhingan held that “the law is well settled that for claiming damages under Section 73 of the Contract Act, actual loss or damage suffered is to be proved and only in cases where such proof is not possible, a honest genuine...

Only Express Waiver Can Cure Arbitrator Ineligibility, Not Conduct Or Panel Appointment: Delhi High Court

On 13 April, the Delhi High Court held that an arbitral award is vitiated where the sole arbitrator is ineligible under Section 12(5) of the Arbitration and Conciliation Act, 1996, and clarified that such ineligibility cannot be cured by implied consent, procedural participation, or panel-based appointments unless there is an express written waiver after disputes arise. A Division Bench of Justices C. Hari Shankar and Om Prakash Shukla dismissed the appeals filed by Titagarh Rail Systems...

Arbitration Clause In Sevens Football Association Bylaws Does Not Bar Suit For Members Disputes: Kerala HC

The Kerala High Court has held that the arbitration clause in the bylaws of the Sevens Football Association does not bar a civil suit in disputes among its members or office bearers, as the clause is limited to disputes between the association's units. A coram of Justice S. Manu made the observation while dismissing an appeal challenging an interim injunction granted by the Additional District Court, Thrissur in a dispute over the use of the name “Sevens Football Association”, its...

Stockbroker Cannot 'Wriggle Out' Of Liability For Agent's Unauthorized Acts: Bombay High Court

The Bombay High Court on 21 April, held that a stockbroker remains liable for unauthorised and fraudulent trades executed by its sub-brokers and agents, particularly where such acts arise in the course of agency and result in abnormal brokerage gains at the client's expense. Justice Arun R. Pedneker upheld the arbitral award directing IIFL Capital Services Limited to pay Rs. 14.37 lakh to investor Sukhadeo Gorakha Bhil and dismissed the appeal filed under Section 37 of the Arbitration and...

MSMED Act Overrides Arbitration Act In MSME Cases; 75% Pre-Deposit To Challenge Award Mandatory: Madras HC

The Madras High Court has held that in arbitration under the Micro, Small and Medium Enterprises Development Act, 2006, while the procedure is governed by the Arbitration and Conciliation Act, 1996, key substantive provisions such as the mandatory 75% pre-deposit for challenging an award will prevail in case of conflict. The court clarified that only those provisions of the Arbitration Act apply which are not inconsistent with the MSMED Act. Justice Abdul Quddhose observed that "MSMED Act is a...

Arbitral Award Executable Against SPV Members Not Party To Proceedings: Allahabad High Court

The Allahabad High Court on 9 April held that members of a special purpose vehicle (SPV) fall within the expression “persons claiming under them” under Section 35 of the Arbitration and Conciliation Act, 1996, and allowed arbitral awards to be executed against them even if they were not parties to the arbitration proceedings. Justice Pankaj Bhatia delivered the ruling while dismissing petitions challenging execution proceedings initiated by Adani Enterprises Ltd. against shareholders of an SPV...

Reconstructed Record Gaps No Ground To Set Aside Award: Tripura High Court

The Tripura High Court on 1 April, held that a Court hearing a challenge to an arbitral award cannot rely on gaps in a reconstructed record to question the Arbitrator's findings or the existence of material that was before the Arbitrator at the time of adjudication. A Bench comprising Chief Justice M.S. Ramachandra Rao and Justice Bishawajit Palit set aside the Commercial Court's order, and upheld the arbitral award. They held: “...merely because they were not found in the reconstructed...

Sports Association Election Disputes Under Rajasthan Sports Act, 2005, Must Go Through Arbitration: Rajasthan HC

The Rajasthan High Court has recently held that disputes touching the constitution, management, or election of a sports association are required to be resolved through the statutory mechanism of conciliation and arbitration under the Rajasthan Sports (Registration, Recognition and Regulation of Association) Act, 2005, and not by invoking the writ jurisdiction of the court. A Division Bench of Justice Inderjeet Singh and Justice Ashok Kumar Jain allowed a special appeal filed by the Rajasthan...