Delhi High Court Sets Aside Part Of Arbitral Award Over 'Cryptic Observations'

The Delhi High Court recently held that an arbitral tribunal cannot reject a claim through "cryptic" reasoning and that such an award is open to interference even within the limited scope of review under arbitration law. The matter was decided by Justice Harish Vaidyanathan Shankar, who emphasised that giving reasons is a core requirement of arbitral decision-making. “The insistence on reasons is not a mere empty formality,” the Court said, adding that reasons must show how the decision-maker...

Bombay High Court Says Award-Holder Has No Right to Retain Deposit After Arbitral Award Is Set Aside

The Bombay High Court recently held that Rashtriya Chemicals and Fertilizers Limited has no right to retain Rs 218.45 crore deposited by Thermax after the arbitral award in its favour was set aside, making it clear that the pendency of an appeal cannot be used to hold on to the money. A Division Bench of Chief Justice Shree Chandrashekhar and Gautam A. Ankhad said the legal position was straightforward once the award no longer existed. The court noted, “There is no arbitral award in...

Arbitration Cases Weekly Digest [26th January - 1st February, 2026]

Nominal Index Jan De Nul Dredging India Pvt. Ltd. v. Tuticorin Port Trust, 2026 LLBiz SC 15Jagdeep Chowgule v. Sheela Chowgule and Ors, 2026 LLBiz SC 30 M/s Angel One Limited v. S.X.J. Vasan, 2026 LLBiz HC (MAD) 30M/s Ramacivil India Construction Pvt. Ltd. v. Central Public Works Department, 2026 LLBiz HC (DEL) 77Arun Mehrotra Versus Kishan Lal, 2026 LLBiz HC (DEL) 85 To ReaVedanta Limited v. Gujarat State Petroleum Corporation Ltd., 2026 LLBiz HC (DEL) 88IFFCO TOKIO General Insurance...

Delhi High Court Moves Interim Relief Plea From Court To Arbitration Forum After Parties Consent

The Delhi High Court has moved a plea for interim relief out of the courtroom and into arbitration after the parties agreed that their dispute should be resolved through arbitration. Justice Harish Vaidyanathan Shankar was hearing a petition arising from a Memorandum of Understanding dated 3 November 2025 between IPEX Infrastructure Pvt. Ltd. and Krishna Constructions, in which interim protection was sought. During the hearing, both sides told the Court that instead of deciding the plea on...

Delhi High Court Upholds Arbitral Award Ordering NHAI To Pay ₹12.18 Crores To Toll Operator For Revenue Loss

The Delhi High Court has dismissed a challenge by the National Highways Authority of India (NHAI) against an arbitral award granted to Kochi Aroor Tollways Private Limited (KATPL), upholding a compensation amount of approximately ₹12.18 crores.The award addressed losses KATPL sustained on the Edapally–Vyttila–Aroor road stretch in Kerala, specifically due to incorrectly fixed toll rates, delays in declaring the Commercial Operation Date, and the costs associated with issuing free monthly passes...

Arbitration Law Bars Interim Relief Against Third Party Once Award Is Unenforceable: Bombay High Court

The Bombay High Court has dismissed a petition filed by Ningbo Aux Imp & Exp Co. Ltd. seeking interim relief against Vijay Sales, holding that such relief cannot be granted once a foreign arbitral award has already been found unenforceable against that party. Justice Sandeep V. Marne noted that the foreign arbitral award in the case was passed only against Amstrad Consumer India Pvt. Ltd. Vijay Sales was not a party to the arbitration and had already been deleted from the award enforcement...

Money Decrees Ordinarily Not Stayed: Allahabad High Court Upholds Release of 75% MSME Arbitral Award Deposit

The Allahabad High Court's Lucknow Bench has upheld an order of the Commercial Court permitting release of 75% of the amount deposited under Section 19 of the MSME Act in favour of Genebio Healthcare Pvt. Ltd. Justice Jaspreet Singh noted that the amount was released to avoid grave hardship to the MSME while the challenge to the arbitral award remains pending. The court also upheld the direction requiring the challenger to furnish security for the remaining 25% of the award amount. It...

Bombay High Court Says Arbitrator Right To Decide Claim on Work Performed, Not Alleged Admission

The Bombay High Court has refused to interfere with an arbitral award after finding that the contractor itself chose to press a claim based on the value of work carried out, and could not later ask the court to enforce a higher amount on the basis of an alleged admission of liability. Dismissing a petition filed by Kanti Builders Pvt Ltd, the Court said the arbitral tribunal was justified in deciding the dispute on evidence of work executed rather than on letters or a dishonoured cheque relied...

'Justice Must Appear to Be Done': Delhi High Court Sets Aside IFFCO Tokio–Unison Arbitration Award Over Delay

The Delhi High Court on Friday set aside an arbitral award arising out of an insurance dispute between IFFCO Tokio General Insurance Company Limited and Unison Hotels Private Limited, holding that the tribunal's two-year delay in pronouncing the award after reserving it had vitiated its findings. The case was heard by a Single Judge Bench of Justice Avneesh Jhingan. The court reiterated that the object of arbitration is speedy dispute resolution. It also observed that “it is trite law that the...

Arbitration Cannot Be Invoked Beyond Contractually Agreed Monetary Limits: Bombay High Court

The Bombay High Court has held that where parties have contractually agreed to restrict arbitration only to disputes up to a specified percentage of the contract value, courts cannot compel arbitration for claims exceeding that agreed limit. Justice Sandeep V. Marne emphasised that arbitration is founded on party autonomy, under which parties are free to determine not only whether disputes will be arbitrated but also which categories or value of disputes will be subject to arbitration. ...

Delhi High Court Allows NHPC To Pursue Delayed Challenge To Parbati Project Arbitral Award

The Delhi High Court has allowed NHPC Limited to pursue a delayed challenge to an arbitral award arising from works executed for the Parbati Hydroelectric Project, after accepting its explanation for the time spent litigating before courts later found to lack territorial jurisdiction.Justice Subramonium Prasad noted that NHPC approached the Delhi High Court within 30 days of the Supreme Court settling the jurisdiction question. The court also took into account that NHPC first had to obtain the...

Arbitration Award Challenge Not Inadmissible Solely For Lack Of Condonation Of Delay Plea: Allahabad High Court

The Allahabad High Court has recently reiterated that a challenge to an arbitral award under Section 34 of the Arbitration and Conciliation Act does not become not maintainable merely because it is not accompanied by a separate application seeking condonation of delay. The court said what matters is whether the party has, in the petition itself, set out reasons for the delay or sought the benefit of limitation law, and whether the court has applied its mind to those pleadings. Justice...