Time Spent In Earlier Arbitration Must Be Excluded From Limitation After Award Set Aside: Bombay High Court

The Bombay High Court recently reiterated that when an arbitral award is set aside, the period between the commencement of the earlier arbitration and the date of the court's order is required to be excluded while computing limitation for initiating fresh arbitral proceedings. A single bench of Justice Sandeep V. Marne applied Section 43(4) of the Arbitration and Conciliation Act and relied on Supreme Court rulings in Arif Azim Co. Ltd v Aptech Ltd and SBI General Insurance Company Ltd v Krish...

'Purported Award' Can Be Challenged Under Section 34 Of Arbitration Act: Calcutta High Court

The Calcutta High Court on Friday held that the scope of challenge under Section 34 of the Arbitration and Conciliation Act, 1996 extends beyond existing awards to include a “purported award” where the very existence of the award is in dispute. A Single Bench of Justice Sabyasachi Bhattacharyya set aside two alleged arbitral awards relied upon by Roadwings International Private Limited in its dispute with SREI Equipment Finance Limited, holding that only photocopies of the awards were produced...

Arbitration Act | Karnataka High Court Upholds Refusal Of Interim Measures In Coorg Cineplex Lease Dispute With Landlord

The Karnataka High Court has recently upheld a Commercial Court order rejecting a plea for interim measures filed by Coorg Cineplex and its partners, holding that after the expiry of the lease, the landlord cannot be restrained from raising objections before the licensing authority regarding the renewal of a theatre licence. A Division Bench comprising Chief Justice Vibhu Bakhru and Justice C.M. Poonacha dismissed the appeal filed by the Cineplex, which had sought directions to the licensing...

Telangana High Court Restrains RUSAL-Linked Firm From Transferring Pioneer Aluminium Shares In ₹2840 Crore Arbitral Award Enforcement

The Telangana High Court has recently restrained AL Plus Holding LLC, a subsidiary of award-debtor United Company RUSAL International PJSC, from transferring its 26% shareholding in Pioneer Aluminium Industries Limited while hearing enforcement proceedings of foreign arbitral awards worth about Rs 2,840 crore obtained by OWH SE i.L. A single bench of Justice T. Madhavi Devi directed that “this Court is inclined to direct the respondent No.2 not to transfer its shares in Pioneer Aluminum...

Survey Report Based On Memory Alone Cannot Determine Insurance Claim: Delhi High Court Sets Aside Award

The Delhi High Court has set aside an arbitral award, holding that an arbitral tribunal cannot rely solely on a defective surveyor's report while ignoring material evidence placed on record. The court observed that although a surveyor's report is an important piece of evidence in insurance disputes, it is not sacrosanct and cannot be treated as conclusive when it suffers from serious infirmities. Justice Jasmeet Singh observed,“The Award is squarely based on a survey report which, though...

J&K & Ladakh High Court Refers Contract Dispute To Arbitration, Leaves Limitation Issue To Tribunal

The High Court of Jammu & Kashmir and Ladakh has recently reiterated that while deciding petitions for appointment of an arbitrator, the court cannot undertake a detailed inquiry into limitation, and such issues must be decided by the arbitral tribunal. The court was hearing four petitions filed under Section 11(6) of the Arbitration and Conciliation Act, seeking appointment of an independent arbitrator to adjudicate disputes arising between Ace Consultants, a proprietorship firm, and...

Calcutta High Court Dismisses Contractor's Appeal In Arbitration Dispute Over Kolkata East-West Metro Tunneling Accident

The Calcutta High Court recently dismissed an appeal filed by a contractor, affirming a single judge's decision that had set aside an arbitral award arising out of the 2019 Kolkata East-West Metro tunnel accident. A Division Bench of Justice Debangsu Basak and Justice Md. Shabbar Rashidi held that the arbitral tribunal committed patent illegality by discarding expert evidence on the basis of its own technical assumptions drawn from personal expertise rather than material on record. The bench...

Partner's Son Not Bound By Arbitration Clause In Partnership Deed: Madras High Court Refuses Arbitration In Trademark Case

The Madras High Court has refused to refer a trademark infringement and passing-off dispute over the snuff brand “J.S. Madras Snuff” to arbitration, holding that the arbitration clause in a partnership deed covering disputes between partners cannot bind a non-signatory merely because the alleged infringer is the partner's son. Justice Senthilkumar Ramamoorthy examined Clause 13 of the partnership deed and observed, “The language of such clause makes it clear that it pertains to disputes or...

Once Parties Agree To Institutional Arbitration, Its Commencement Is Governed By Institutional Rules: Karnataka High Court:

The Karnataka High Court has recently observed that the commencement of arbitral proceedings will be governed by agreed institutional rules and not necessarily by Section 21 of the Arbitration and Conciliation Act, since the provision applies only “unless otherwise agreed by the parties." Dismissing a contractor's appeal against a Rs 7.99-crore arbitral award, the court observed that “It is apparent from the plain language of Section 21 of the A&C Act that the arbitral proceedings are...

Madras High Court Sets Aside SHRC Order In Contract Dispute, Cites Dispute Resolution and Arbitration Mechanism

The Madras High Court has recently set aside a recommendation of the Tamil Nadu State Human Rights Commission directing payment of ₹1 lakh compensation in a dispute arising out of a funding agreement between the Tamil Nadu State AIDS Control Society (TANSACS) and an NGO, holding that the matter was governed by a contractual dispute-resolution clause providing for grievance redressal and arbitration. The order was passed by a Division Bench of Justice Dr. G. Jayachandran and Justice Shamim Ahmed...

MP High Court Pulls Up MPRTC For Delay In Paying Arbitral Award, Notes ₹1.5 Crore Grew To ₹6 Crore With Interest

The Madhya Pradesh High Court has recently pulled up the Madhya Pradesh Road Transport Corporation (MPRTC) for delaying payment of a Rs 1.5-crore arbitral award for years, observing that the liability has now escalated to more than Rs 6 crore due to accumulated interest, resulting in “misuse and wastage of public money.” Setting aside an order of the executing court that had dismissed the execution proceedings for non-payment of process fee, a Division Bench of Justices Vivek Rusia and Pradeep...

Arbitral Award Not Invalid Merely Because MSME Party Could Have Approached Facilitation Council: Bombay High Court

The Bombay High Court on Tuesday observed that an arbitral award passed through ad hoc arbitration cannot be invalidated merely because one of the parties is an MSME supplier who could have approached the Facilitation Council under the MSMED Act.Justice Sandeep V. Marne dismissed a petition filed by Bharat Sanchar Nigam Limited (BSNL) challenging an arbitral award passed in favour of Microtex Energy Pvt. Ltd,an MSME. “Therefore, if parties opt for ad hoc arbitration, the award is not...