Supplier's Alleged Non-Registration Under MSMED Act Does Not Nullify Arbitral Award: J&K High Court

The High Court of Jammu, Kashmir and Ladakh on 30 September held that an arbitral award passed under the Micro, Small and Medium Enterprises Development Act, 2006 does not become a nullity merely because the supplier was allegedly not registered under the Act when the underlying transaction took place. Justice Sanjay Dhar dismissed three revision petitions filed by Kashmir Confectionary Store, Mehak Trading Co. and Naugraein Traders, challenging the execution of arbitral awards obtained by...

Calcutta High Court Upholds ₹24.30 Lakh Award To Contractor After Union Failed To Provide Site

On 5 October, the Port Blair Circuit Bench of the Calcutta High Court upheld an arbitral award of Rs. 24.30 lakh in favour of K.P. Trading and Company, holding that the award of loss of profit was supported by the material on record and did not warrant interference. Justices Madhuresh Prasad and Prasenjit Biswas dismissed the Union of India's appeal under Section 37 of the Arbitration and Conciliation Act, 1996, against the 15 September 2017 arbitral award and the Additional District Judge's...

SARFAESI Possession Of Property Doesn't Bar Redevelopment If Security Is Protected: Bombay High Court

The Bombay High Court on 7 September held that a secured creditor's possession of mortgaged property under the SARFAESI Act does not, by itself, prevent redevelopment of the property, provided the creditor's security remains protected. Justice Amit Borkar permitted redevelopment of flats in Virani Towers, over which the State Bank of India (SBI) had taken possession under SARFAESI proceedings, while directing that the Bank's security should not be diluted or extinguished. The Bench observed: ...

Partner's Claim For Contribution From Co-Partners Arbitrable Despite Guarantor Status: Delhi High Court

On 5 October, the Delhi High Court held that a partner's claim against co-partners for money paid towards a firm's liability remains arbitrable even if the partner made the payment as a guarantor. It also clarified that the nature of the claim, and not merely the capacity in which the bank proceeded against the partner, determines whether it is covered by the arbitration agreement. A Division Bench comprising Justices Anil Kshetarpal and Bharat Parashar restored an arbitral award in favour of...

Delhi High Court Asks RBI To Caution Banks After Axis Bank's Unilaterally Appointed Arbitrator Handles 4,155 Cases

The Delhi High Court has directed the Reserve Bank of India to caution banks against unilateral appointments of arbitrators and consider remedial measures or guidance for banks and financial institutions on the issue.The direction came after the Court was informed that an arbitrator appointed by Axis Bank had handled 4,155 arbitrations concerning the Bank over four to five years. The Bank also informed the Court that around 76,000 awards had been passed pan-India by such sole arbitrators...

Karnataka High Court Upholds Forfeiture Of Developer's Advance After 7-Year JDA Delay

The Karnataka High Court on 22 September upheld the forfeiture of a developer's advance under an arbitral award after the developer failed to implement a Joint Development Agreement (JDA) for seven years. A Division Bench of Justices D.K. Singh and H. Shanthi Bhushan dismissed the developers' appeal and allowed the landowner's appeal concerning a Bengaluru-based multistoried housing project, restoring the forfeiture portion of the arbitral award which the Commercial Court had set aside. The...

Writ Court Cannot Appoint Arbitrator Where Contract Mandates Statutory Mechanism: Patna High Court

The Patna High Court on 29 September held that a writ court cannot appoint an arbitrator under the Arbitration and Conciliation Act, 1996 when the parties' agreement provides for resolution of disputes through a statutory arbitration mechanism. A Division Bench comprising Justices Sudhir Singh and Rajesh Kumar Verma set aside the Single Judge's order appointing a sole arbitrator in a dispute between Bihar's Mines and Geology Department and Mahadev Enclave Pvt. Ltd., noting that Clause 9 of the...

NHAI Cannot Take Technical Ground Against Landowners, Having Knowledge Of Arbitration Proceedings: Madras High Court

The Madras High Court has restored arbitral awards enhancing compensation for land acquired for a national highway, holding that the National Highways Authority of India (NHAI) could not rely on a technical objection over notice despite having knowledge of the arbitration proceedings. The court questioned why NHAI had remained a “lame duck” despite knowing about the proceedings and held that a public authority could not take such a technical ground to deny landowners their rights under Article...

Interim Arbitration Relief Plea Cannot Be Rejected At Threshold Merely Because It Covers Two Agreements: Rajasthan High Court

The Rajasthan High Court has held that an application seeking interim relief in aid of arbitration cannot be rejected at the threshold under Order VII Rule 11 merely on an objection that it covers two separate agreements containing separate arbitration clauses.Justice Anand Sharma observed, “The question whether two agreements are wholly independent or are interrelated is not necessarily capable of determination merely by looking at the title of the agreements or the fact that they contain...

MSCS Act Arbitration Not Invalid For Absence Of Separate Notice Under Arbitration Act: Karnataka High Court

The Karnataka High Court has held that arbitration under the Multi-State Co-operative Societies Act, 2002 cannot be treated as invalid merely because no separate notice was issued under Section 21 of the Arbitration and Conciliation Act, 1996.Justice Sachin Shankar Magadum observed, “The absence of a separate notice under Section 21, in the circumstances pleaded in these petitions, does not by itself render the appointment of the learned Arbitrator under Section 84 of the MSCS Act invalid, nor...

Changing Rent Claim To Mesne Profits Without Changing Quantum Not Patent Illegality: Gujarat High Court

The Gujarat High Court on 24 September held that recasting an arbitral claim from “rent” as “mesne profits” does not amount to patent illegality warranting interference with an award when the monetary liability remains unchanged. A Division Bench comprising Chief Justice Sunita Agarwal and Justice D.N. Ray dismissed Indus Towers' challenge to an arbitral award directing it to pay the landowners Rs. 25,800 per month, with contractual escalation, until it handed over vacant possession, describing...

Party Choosing Pre-Suit Mediation Must End It Before Invoking Arbitration: Madras High Court

The Madras High Court on 28 September held that a party cannot invoke the Arbitration and Conciliation Act, 1996 while pre-institution mediation proceedings it had voluntarily initiated under Section 12A of the Commercial Courts Act, 2015 remain pending. Justice K. Kumaresh Babu dismissed Grand Blue Projects Pvt Ltd's application under Section 9 of the Arbitration Act, seeking to restrain True Value Home India Pvt Ltd and TVH Estates Chennai Pvt Ltd from dealing with the disputed property. The...