Contractual Limits On Termination Liability Cannot Be Ignored: Delhi HC Upholds Setting Aside ₹911 Cr Arbitral Award

The Delhi High Court recently observed that contractual words restricting termination liability must be given effect, holding that parties to a long-term public infrastructure concession could not have inserted such limitations without intending them to operate as a cap.A Division Bench comprising Justice Anil Kshetarpal and Justice Shail Jain made the observation while upholding the setting aside of an arbitral award granting ₹911.13 crore to Kurukshetra Expressway Private Limited as...

Arbitration Clause In Articles Of Association Operates Independently Of Companies Act: Calcutta High Court

On Monday, 28 September, the Calcutta High Court held that an arbitration clause contained in a company's Articles of Association operates as an independent agreement and does not make disputes covered by the clause subject exclusively to the jurisdiction of the National Company Law Tribunal (NCLT). A Division Bench comprising Justices Sabyasachi Bhattacharyya and Sandip Kumar De made the observation while allowing an appeal filed by Ambica Beri against the District Judge's refusal to grant...

Karnataka High Court Upholds Award Rejecting ₹1.37 Crore Contractor Claim In Mysuru Zoo Park Project

The Karnataka High Court on 23 September dismissed contractor C. C. Kondaiah's appeal against the Commercial Court's decision not to interfere with an arbitral award rejecting his claims for additional expenditure, price escalation and idling costs against the Mysore City Corporation. A Division Bench of Justices Anu Sivaraman and T.P. Vivekananda reiterated that an appellate court cannot reappreciate evidence or substitute the reasoning of an arbitral tribunal while exercising jurisdiction...

Bank's Lack Of Consent No Bar To Arbitrator Appointment Under SARFAESI: Delhi High Court

The Delhi High Court on 25 September held that a bank's lack of consent does not bar appointment of an arbitrator where an inter-se dispute between banks falls within the statutory arbitration mechanism under the SARFAESI Act. Justice Om Prakash Shukla appointed Advocate Mohit Kumar Mudgal as sole arbitrator to adjudicate Indian Bank's dispute with Bank of Baroda and others over competing claims of priority and charge over certain mortgaged properties. The Bench observed: “The absence of...

LiveLawBiz Arbitration Cases Weekly Digest: September 21 - September 27, 2026

NOMINAL INDEXKinetic Green Energy and Power Solutions Limited v. Saera Electric Auto Limited, 2026 LLBiz SC 319Union of India & Others v. Hariom Projects Pvt. Ltd., 2026 LLBiz SC 316Mahanadi Coalfields Ltd. & Ors. v. M/s GSCO (Gurmeet Singh and Company) Infrastructure Pvt. Ltd., 2026 LLBiz SC 315North Eastern Electric Power Corporation Limited (NEEPCO) v. Astra Construction Private Limited, 2026 LLBiz SC 314M/s Ahluwalia Contracts (India) Limited (ACIL) v. Airports Authority of India...

Appointing Arbitrator Unilaterally Does Not Amount To Waiving Ineligibility: Delhi High Court

The Delhi High Court has held that a party's unilateral appointment of an arbitrator cannot by itself amount to an express waiver of the arbitrator's statutory ineligibility under Section 12(5) of the Arbitration and Conciliation Act, 1996.A Division Bench of Justice Anil Kshetarpal and Justice Vimal Kumar Yadav upheld the setting aside of an arbitral award partly in favour of Ahluwalia Contracts (India) Limited (ACIL), despite the Airports Authority of India (AAI) having appointed the...

Pending Arbitration Does Not Bar Wilful Defaulter Proceedings Against Borrower: Calcutta High Court

On 23 September, the Calcutta High Court held that the pendency of arbitration proceedings cannot prevent a lender from issuing a show-cause notice to declare a borrower a wilful defaulter. Justice Krishna Rao dismissed Kitply Industries' writ petition challenging SREI Equipment Finance Ltd.'s (SEFL) show-cause notice alleging that it had disposed of assets securing its credit facility without the lender's approval. The Bench observed: “Pendency of the arbitration proceeding could not debar...

Gujarat High Court Says Casual Award Challenges Burden Courts, Imposes ₹3 Lakh Costs On Housing Board

The Gujarat High Court on 18 September held that courts can impose costs to deter casual challenges to arbitral awards, observing that frivolous applications under Sections 34 and 37 of the Arbitration and Conciliation Act, 1996 burden courts with unnecessary litigation. A Division Bench of Chief Justice Sunita Agarwal and Justice D.N. Ray dismissed the Gujarat Housing Board's challenge to a Rs. 3.97 crore arbitral award in favour of Cube Construction Engineering Ltd. and imposed Rs. 3 lakh...

Bombay High Court Restrains Parle Agro's Franchisee From Selling SURE Water Competing With BAILLEY

The Bombay High Court has granted interim protection to Parle Agro Private Limited in its arbitration dispute with its franchisee Udayak Agro Products Pvt. Ltd. and Udayak's connected entity, K.L. Beverages LLP, over the manufacture and sale of competing packaged drinking water. Justice Amit Borkar found a prima facie case that the manufacture of SURE water by K.L. Beverages was covered by the indirect competition restrictions in Parle Agro's franchise agreement with Udayak. Under the...

Writ Against Order U/S 37 Arbitration Act Not Barred By Second Appeal Restriction: Orissa High Court

The Orissa High Court on 21 September held that a writ petition under Articles 226 and 227 of the Constitution can be maintained against an order passed by a District Judge under Section 37 of the Arbitration and Conciliation Act, 1996, despite Section 37(3) barring a second appeal. Justice B.P. Routray rejected the preliminary objection to the maintainability of the writ petitions filed by the state and other, holding that the High Court's constitutional jurisdiction does not constitute a...

Foreign Arbitral Tribunal Interim Relief May Fail In India Without Direct Enforcement: Bombay High Court

On Tuesday, 22 September, the Bombay High Court held that interim relief granted by a foreign arbitral tribunal may be rendered ineffective in India where there is no direct mechanism to enforce such an order. A Division Bench of Justices A.S. Gadkari and Kamal Khata allowed an appeal by Singapore-based Sunfield Global Pte Limited against Liberty Investments Private Limited, set aside a Single Judge's order refusing interim protection and directed Liberty to secure Sunfield's admitted USD...

Visakhapatnam Courts Have Jurisdiction Over RINL Arbitration Challenge Despite Delhi Seat: Andhra Pradesh High Court

The Andhra Pradesh High Court has held that the courts at Visakhapatnam have jurisdiction to hear Rashtriya Ispat Nigam Ltd.'s challenge to an arbitral award, despite the arbitral tribunal later recording New Delhi as the seat of arbitration.Justice Balaji Medamalli observed that the parties had agreed to the exclusive jurisdiction of the Visakhapatnam courts while separately providing for different venues for conducting the arbitration.“In the instant case, Article 18 of the agreement clearly...