Allahabad High Court Refuses Writ Against MSME Council Award, Directs Recourse Under Section 34

The Allahabad High Court on 30 April reiterated that a writ petition challenging an ex-parte award passed by the Micro, Small and Medium Enterprises Facilitation Council under Section 18 of the Micro, Small and Medium Enterprises Development Act, 2006 is not maintainable when the statute provides an alternative remedy under Section 34 of the Arbitration and Conciliation Act, 1996. A Division Bench of Justices Saral Srivastava and Garima Prashad dismissed the writ petition filed by Shri Krishna...

Himachal Pradesh HC Says State Waived Arbitration Bid After Contesting L&T's Hydro Power Dispute For Seven Years

The Himachal Pradesh High Court has refused to send the ₹84 crore dispute between L&T Himachal Hydro Power Limited and the State government over the Reoli-Dugli hydropower project to arbitration. The court held that the State waited too long to seek that remedy after contesting the writ petitions for more than seven years. “As already noticed above, after the amendment carried out in the Act in the year 2015, if the party applies not later than date of submitting the first statement on the...

Pending IBC Proceedings Do Not Bar Arbitration Referral: Calcutta HC In SREI-Orissa Steel Dispute

The Calcutta High Court has referred a dispute between SREI group entities and Orissa Steel Expressway Private Limited to arbitration. It held that objections based on pending insolvency proceedings, allegations of fraud, and the status of a non-signatory claimant must be decided by the arbitral tribunal, not at the stage of appointing an arbitrator. “Thus, the question of arbitrability of the disputes and supremacy of IBC over the arbitral proceeding, will have to be decided by the learned...

Delhi HC Upholds Arbitral Award Limiting Payment To 25% For Cables Laid In Existing Ducts In BSNL Project

The Delhi High Court on Monday dismissed Sterlite Technologies Ltd.'s challenge to an arbitral award that limited its payment to 25% of the quoted service cost for optical fiber cables laid through other empty ducts already laid in the same multi-duct trench under a defence telecom project. Justice Avneesh Jhingan held that Clause 28(iii) of the purchase order independently governed the issue, regardless of the dispute over the applicability of the tender clause dealing with government ducts. ...

Delhi HC Sets Aside Disqualification Of Bid For Arbitration Centre Work Over 'Hyper-Technical' Objections

The Delhi High Court has set aside the disqualification of a company's technical bid for interior and fit-out work at the India International Arbitration Centre (IIAC), holding that “hyper-technical” objections relating to solvency certificates cannot defeat the objective of a fair and competitive tender process. A division bench of Justices Anil Kshetarpal and Amit Mahajan observed that the exclusion of bidders on a “myopic view or on hyper-technical grounds” would undermine the very...

Pre-Arbitration Mutual Discussion Clauses Are Directory, Not Mandatory: Delhi High Court

The Delhi High Court on 7 May held that failure to engage in pre-arbitral mutual discussions cannot bar invocation of an arbitration clause or appointment of an arbitrator under Section 11(6) of the Arbitration and Conciliation Act, 1996, since clauses requiring parties to first attempt amicable settlement are directory and not mandatory. Justice Mini Pushkarna appointed Advocate Isha Bhalla as sole arbitrator to adjudicate disputes between Orix Corporation India Ltd. and Peters Surgical India...

Gujarat High Court Says Arbitral Hearing Venue Cannot Alter Contractual Seat, Rejects Kirloskar's Plea

The Gujarat High Court on 8 May held that the juridical “seat” of arbitration cannot be shifted merely because arbitral proceedings were conducted elsewhere or because the arbitral tribunal recorded such a statement in procedural minutes, where the contract required any variation to be made only through a formal written amendment. A Division Bench of Chief Justice Sunita Agarwal and Justice D.N. Ray upheld a Commercial Court order refusing to shift the arbitration seat from Ankleshwar to...

Participation In Arbitration Cannot Validate Tribunal Not Constituted As Per Law: Calcutta High Court

Participation in arbitration proceedings cannot validate proceedings before a tribunal that was not constituted in accordance with law, the Calcutta High Court has held while setting aside an arbitral award in a dispute between Tata Steel Limited and MSP Sponge Iron Limited. “The participation of the petitioner before a forum which was not constituted as per law and did not have the jurisdiction to decide the dispute is inconsequential. A party who cannot act as an arbitrator, cannot also...

Bombay High Court Allows Builder To Pursue Fresh Arbitration Despite Appeal Against Earlier Award

The Bombay High Court has allowed Vardhaman Builders to pursue fresh arbitration for damages over the termination of a redevelopment agreement, despite a pending appeal against an earlier arbitral award in the same dispute. Justice Sandeep V. Marne noted that the Supreme Court had refused to interfere with an earlier Bombay High Court order that allowed Vardhaman Builders to pursue fresh arbitration limited to damages. He held, “The Apex Court has permitted continuation of parallel...

Nine Years Of Silence In Arbitration Equals Abandonment Under Section 32(2)(c): Bombay High Court

The Bombay High Court on 8 May held that prolonged inactivity in arbitral proceedings, coupled with absence of any steps for nearly nine years, amounted to implied abandonment, resulting in termination of proceedings under Section 32(2)(c) of the Arbitration and Conciliation Act, 1996. Justice Sandeep V. Marne dismissed the plea seeking appointment of a substitute arbitrator, holding that the arbitral proceedings stood terminated and could not be revived. He observed: “It is incomprehensible...

Bombay High Court Holds Denial Of 30% Solatium Is Computational Error In NH Land Acquisition Cases

The Bombay High Court recently held that denial of 30% solatium in arbitral awards arising from compulsory land acquisition for National Highways projects constitutes a computational error, which can be corrected under Sections 34 and 37 of the Arbitration and Conciliation Act, 1996, without undertaking a merits review. Justice Somasekhar Sundaresan allowed a batch of appeals filed by landowners, including Prashant Vasant Koregaonkar and others, challenging arbitral awards in proceedings...

Calcutta High Court Upholds ₹151 Crore Arbitral Award On Restitution In Coal Block Dispute

The Calcutta High Court on 5 May upheld major portions of an arbitral award of about Rs. 151 crore in favour of Trans Damodar Coal Mining Pvt Ltd in a dispute arising from cancellation of coal block allocation after the Supreme Court's 2014 judgments. Justice Shampa Sarkar held that even though the mining contract became void after the Supreme Court struck down coal block allocations in 2014, the arbitral tribunal could still grant limited restitutionary relief under the Contract Act and the...