Madhya Pradesh High Court Holds MPIR Execution Not Barred by Limitation, Reads Down Rule 48-A

The Jabalpur Bench of the Madhya Pradesh High Court on 21 April held that execution proceedings under the Madhya Pradesh Industrial Relations Act, 1960 (MPIR Act) are not barred by limitation even when initiated after more than a decade of the award. Justice Vivek Jain further read down Rule 48-A of the Madhya Pradesh Industrial Relations Rules, 1961, holding that it cannot override Section 108 of the Act by prescribing a limitation period for execution and dismissed a petition filed by the...

Delhi High Court Upholds ₹25,000 Nominal Damages In IOCL Dispute, Rules Price Difference Not Proof Of Loss

The Delhi High Court on 22 April upheld an arbitral award arising from a supply contract between Indian Oil Corporation Limited (IOCL) and Hazel Mercantile Ltd, where the arbitrator had granted nominal damages of Rs. 25,000. Justice Avneesh Jhingan held that a mere price difference does not, by itself, establish proof of loss and declined to interfere under Section 34 of the Arbitration and Conciliation Act. He observed: “The quantification of the nominal damages is a discretion exercised by...

Delay In Challenging Arbitral Award Not Condoned When Party Lacks Due Diligence: Calcutta High Court

The Calcutta High Court on 20 May held that a party cannot invoke Section 14 of the Limitation Act, 1963 to save a delayed challenge to an arbitral award after pursuing proceedings before the wrong forum without due diligence and bona fide conduct. A Division Bench of Justices Debangsu Basak and Md. Shabbar Rashidi also held that once the High Court entertains an application under Section 29A of the Arbitration and Conciliation Act, 1996, exclusive jurisdiction thereafter vests in it for all...

Arbitral Tribunal Need Not Seek MSME Council Approval Before Passing Final Award: Delhi High Court

The Delhi High Court has held that the MSMED Act and the Arbitration and Conciliation Act do not envisage any intermediary mechanism requiring an arbitral institution to submit a recommendatory report to a Micro and Small Enterprises Facilitation Council for approval or confirmation. Once a dispute is referred by the Council under the MSMED Act, the arbitral institution can independently render a final arbitral award, the Court held. Justice Harish Vaidyanathan Shankar dismissed a challenge to...

Delhi High Court Rejects Pandrol Rahee's Extra Payment Claim, Affirms Fixed-Price Nature Of IRCON Contract

The Delhi High Court on 20 May upheld an arbitral award rejecting Pandrol Rahee Technologies Pvt. Ltd.'s claim for additional payment from IRCON International Ltd. for supplying extra components for ballastless track fastening systems, holding that the contract remained a fixed-price “set-based” agreement despite variations in quantity. Justice Avneesh Jhingan observed that, “if the argument is taken to its logical end, it would mean that upon variation, the contract would change from a...

Dispute Over Partnership Deed Validity Cannot Defeat Arbitration Agreement: Calcutta High Court

The Calcutta High Court on 18 May held that a party cannot defeat an arbitration agreement merely by disputing the validity or genuineness of partnership deeds containing the arbitration clause. It observed that allowing such a challenge at the referral stage would undermine the doctrine of Kompetenz-Kompetenz under Section 16 of the Arbitration and Conciliation Act.Justice Gaurang Kanth allowed a Section 11 petition filed by Juli Bhagat and appointed Advocate Chayan Gupta as sole...

Arbitration Clause Survives In Continuing Commercial Transactions Absent Clear Waiver: Calcutta High Court

The Calcutta High Court on 19 May held that where a series of agreements form part of a single, continuous commercial transaction, an arbitration clause in the original agreement survives in subsequent arrangements unless the later agreement clearly and unambiguously shows an intention to abandon arbitration. Justice Gaurang Kanth allowed a Section 11 petition filed by The Peerless General Finance and Investment Company Ltd and appointed former Judge of the Calcutta High Court, Justice Indra...

Kerala HC Refers Malabar Group Companies' Dispute With Shareholders Over Non-Compete Breach To Arbitration

The Kerala High Court has recently referred to arbitration a dispute between three Malabar Group companies and certain shareholders over allegations that the shareholders breached non-compete provisions in the companies' Articles of Association by becoming involved in rival jewellery businesses. Justice S Manu was dealing with petitions filed by Malabar International Gold Designs Private Limited, Luster Gold Palace (India) Private Limited and Malabar Gold Supermarket (Kannur) Private Limited...

Pending Arbitration Does Not Bar Eviction Proceedings Under West Bengal Public Land Act: Calcutta High Court

The Calcutta High Court has recently held that pending arbitration over a lease dispute does not by itself prevent public authorities from initiating eviction proceedings under the West Bengal Public Land (Eviction of Unauthorised Occupants) Act against an alleged unauthorised occupant of public land. Justice Om Narayan Rai, however, set aside the impugned eviction notice after finding that the statutory authority had acted with a prejudged and influenced mind. Explaining why the pending...

Non-Signatory Group Companies Cannot Be Automatically Impleaded In Arbitration: Bombay High Court

The Bombay High Court has recently held that every group company connected to a commercial transaction cannot automatically be dragged into arbitration just because it belongs to the same corporate group as a signatory party or played some role in the underlying transaction. Explaining the scope of the “group of companies” doctrine, Justice Somasekhar Sundaresan held, “What becomes clear is that whether a non-signatory is a veritable party to the arbitration agreement is the subject matter...

Arbitrator's Mandate Can't Be Denied Extension Because It May Remove Challenge Ground: Delhi High Court

The Delhi High Court has extended an arbitrator's mandate after an arbitral award had already been pronounced, holding that an extension cannot be refused merely because it would eliminate a ground to challenge the award. Justice Avneesh Jhingan observed, “Merely as the outcome of the arbitration proceedings was known to the parties and with extension of the mandate one of the ground to challenge award under Section 34 of the Act may not survive, cannot be the consideration for rejection...

Arbitral Tribunal's Refusal To Implead Proposed Parties Is Appealable: Bombay High Court

The Bombay High Court has held that where an arbitral tribunal finds it lacks jurisdiction over persons sought to be added to arbitration proceedings, such a decision can be challenged, though it declined to interfere with such a refusal in a dispute between two partners in a property development firm. Justice Somashekar Sundaresan held that such intervention may be necessary because, “if the arbitration proceedings are conducted entirely without the involvement of someone who is later...