Calcutta High Court Sets Aside Arbitral Award Against Company Officials Without Impleading Companies

The Calcutta High Court has set aside an arbitral award after finding that it was passed against two officials of state-owned power companies instead of the companies that were parties to the arbitration agreement. A Division Bench of Justices Debangsu Basak and Md. Shabbar Rashidi held that the award, which fastened liability on the managing director of Bihar State Power Generation Company Limited and the chairman of Bihar State Power Holding Company Limited, could not be sustained since the...

Kerala High Court Sets Aside Arbitral Award For Relying On Findings Of Set-Aside Award

The Kerala High Court has recently set aside an arbitral award after holding that the arbitrator committed a jurisdictional error by treating findings from an earlier arbitral award, which had already been set aside, as 'alive and final.'A bench comprising Chief Justice Soumen Sen and Justice Syam Kumar V. M. observed the arbitrator was required to consider the dispute afresh but failed to do so. Instead, the arbitrator proceeded on the assumption that conclusions recorded in the earlier...

Delhi High Court Reaffirms Arbitral Award Allowing AIIMS To Encash 50% Of Contractor's Bank Guarantee

The Delhi High Court has upheld an arbitral award permitting the All India Institute of Medical Sciences, New Delhi, to encash 50% of a contractor's Performance Bank Guarantee after short payment of wages to sanitation workers was established. A Division Bench of Justices Anil Kshetarpal and Amit Mahajan held that neither the arbitral award nor the district court's order dismissing objections to it suffered from perversity or patent illegality warranting interference. The court noted that the...

Pending CBI Probe Not Adjudication: Bombay High Court Upholds Arbitral Award Against Central Railway

The Bombay High Court on Wednesday held that Central Railway cannot withhold undisputed payments to a contractor merely because a criminal case is pending in relation to another supply. The Court said a CBI investigation does not amount to adjudication under a contract and cannot, by itself, justify retaining money that is otherwise payable. A single bench of Justice Gauri Godse held that the Railways were required to first raise a recovery claim and subject it to adjudication before...

Delhi High Court Reiterates Referral Court Cannot Limit Arbitrator To Specific Claims

The Delhi High Court recently reiterated that a Referral Court under Section 11 of the Arbitration and Conciliation Act, 1996, cannot dictate which disputes an arbitrator should hear. Its role is limited to appointing an arbitrator, leaving all substantive claims and defences for the arbitrator to decide. Justice Harish Vaidyanathan Shankar imposed costs of Rs. 50,000 on Puri Constructions, the petitioner, for attempting to restrict the arbitration to selective claims while appointing Hon'ble...

Arbitral Tribunals Cannot Grant Equity-Based Relief Unless Authorised By Contract: Bombay High Court

The Bombay High Court has held that arbitral tribunals must decide disputes strictly in accordance with the contract and applicable law and cannot grant relief based on "notions of equity or fairness" unless the parties have expressly authorised such an approach. Setting aside an arbitral award directing a refund of brokerage, the court held that arbitrators are not courts of law empowered to dispense equitable relief and that once transactions are held to be authorised, their contractual...

Madras High Court Sets Aside ₹7.77-Crore Award Against New India Assurance

The Madras High Court has recently set aside a Rs 7.77-crore arbitral award passed against New India Assurance Company Limited, holding that the arbitral tribunal failed to properly examine whether the claimant had the right to maintain the insurance claim after transferring its entire business. Allowing the insurer's challenge, Justice N. Anand Venkatesh held that the tribunal ignored a threshold issue going to the root of the dispute and returned findings that were “bereft of any materials”...

SARFAESI Involves Enforcement, Not Adjudication; Does Not Bar Arbitration: Bombay High Court

The Bombay High Court on Monday held that initiation of proceedings under the SARFAESI Act does not bar arbitration between a lender and a borrower. The court clarified that SARFAESI proceedings are meant only for enforcement of security and do not involve adjudication of disputes. Arbitration, it held, is an adjudicatory process and can proceed in parallel. Justice Sandeep V. Marne made the observations while hearing petitions filed by Tata Capital Housing Finance Ltd seeking appointment of...

Arbitration Can Resume Without Fresh Notice After Award Is Set Aside: Karnataka High Court

The Karnataka High Court has held that once an arbitral award is set aside, the disputes stand revived and can be referred back to arbitration without requiring the parties to issue a fresh notice under Section 21 of the Arbitration and Conciliation Act, 1996.Section 21 deals with the commencement of arbitral proceedings through notice to the opposing party. Justice Suraj Govindaraj held that this requirement is procedural and not jurisdictional and cannot be invoked to block arbitration after...

Delhi High Court Slaps ₹1 Lakh Cost On Litigant For 'Calculated Attempt' To Delay Arbitral Award Execution

The Delhi High Court has imposed Rs 1 lakh in costs on a litigant for what it called a “calculated attempt” to stall enforcement of a decade-old arbitral award. Justice Harish Vaidyanathan Shankar dismissed the objection application, holding that repeated attempts to delay execution, as in the present case, cannot be justified as an exercise of legal rights. The court underscored that the award, passed on December 31, 2014, had already attained finality. “The approach adopted by the Objector...

Delhi High Court Rejects Reliance Industries' Objections To Centre's Appeal In $3.86 Billion Dispute

The Delhi High Court on Monday ruled that the Centre's appeal against the refusal to enforce a foreign arbitral award in a $3.86 billion dispute with Reliance Industries can proceed. The court rejected RIL's objections to the Centre's appeal against a single judge order refusing to enforce the foreign arbitral award.The dispute relates to production sharing contracts for the Tapti and Panna Mukta oil and gas fields and a claim of USD 3,856,734,582. A Division Bench of Justice Navin Chawla and...

Delhi High Court Upholds Arbitral Award Directing Zreyah To Supply Switches, Refund ₹2.84 Crore To OYO

The Delhi High Court has ruled in favour of OYO Hotels and Homes Pvt. Ltd. in a dispute over the supply of electronic switches. The Court upheld an arbitral award directing Zreyah Semiconductors Private Limited to deliver 11,000 switches to OYO and refund Rs 2.84 crore with interest. It said the arbitrator's conclusions were plausible and did not call for interference. The case was heard by Justice Avneesh Jhingan. The court agreed with the arbitrator's reading of the contract. It refused to...