Calcutta High Court
Threshold To Prove Fraud & Corruption In Arbitral Award Is Much Higher Than Merely Criticising Findings Of Arbitrator: Calcutta High Court
The Calcutta High Court bench of Justice Shampa Sarkar has observed that in order to prove that the making of the award was vitiated by fraud, the petitioner would have to demonstrate that the unethical behaviour of the arbitrator surpassed all moral standards. The Court reiterated that an honest mistake or incorrect appreciation of the terms of the contract cannot be either fraud or corruption. Background Facts The dispute referred to arbitration arose out of an agreement for...
Arbitration Agreement Valid Without Specifying 'Applicable Law', 'Seat' Or 'Venue' If Intent To Refer Dispute To Private Tribunal Is Clear: Calcutta HC
The Calcutta High Court bench of Justice Shampa Sarkar has held that for an arbitration agreement to be binding, neither the applicable law nor the seat or venue needs to be mentioned. As long as the clause indicates that the parties had agreed and there was a meeting of minds to refer any dispute to a private tribunal for adjudication of the disputes, the clause would constitute an arbitration clause. Brief Facts The petitioner filed the application for appointment of an...
Original Side Rules On Accepting Counterclaim & Reply Need Amending Due To Rigidity Of S.18 Of Commercial Courts Act: Calcutta HC Frames Guidelines
The Calcutta High Court has held that the court's original side rules on accepting of plaint and counterclaim need to be amended due to the rigidity of Section 18 of the Commercial Courts act. In doing so, the bench of Justices Soumen Sen and Biswaroop Chowdhury also framed guidelines for the same till the amended rules were implemented. The Court held: In view of the stringent provisions in the Commercial Court Act, with regard to filing of pleadings and more particularly written statement...
Referral Court Can Reject Arbitration Only In Exceptional Cases Where Plea Of Fraud Appears To Be Ex Facie Devoid Of Merit: Calcutta HC
The Calcutta High Court bench of Justice Shampa Sarkar observed that unless the arbitration agreement prima facie appeared to be inoperative on account of fraud, the referral Court should not indulge in a roving inquiry as such an inquiry is within the domain of the arbitrator. The fact whether the agreement was induced by fraud would entail a detailed consideration of the evidence lead by the parties and these issues cannot be decided by the referral court. Background The loan...
[CGST ACT] Dept Can't Seize Goods If Quantity Or Weight Of Goods Is Found Correct On Physical Verification: Calcutta High Court
The Calcutta High Court stated that GST department cannot seize the goods if the quantity or weight of the goods is found correct on physical verification. The Division Bench of Chief Justice T.S Sivagnanam and Justice Hiranmay Bhattacharyya noted that the quantity or the weight of the goods, which were carried in the vehicle, has been found to be correct by the department on physical verification and there is no discrepancy. The bench further stated that “the inspecting authority...
[Arbitration Act] Pre-Referral Jurisdiction Of Court U/S 11(6) Includes Inquiry On Whether Claims Are Ex-Facie & Hopelessly Time Barred: Calcutta HC
The Calcutta High Court Bench of Justice Shampa Sarkar has held that while the scope of adjudication by referral court is limited and entails a mere examination of whether the arbitration agreement exists or not, the referral court is not precluded from examining whether the claim is deadwood or ex facie barred. Background Facts The agreement between the parties was entered into on December 31, 2004 and the work order was issued sometime in 2006. It is contended by the Petitioner...
Gratuity Dues Of Workers Do Not Form Part Of 'Liquidation Estate' Of Corporate Debtor, Must Be Paid In Full: Calcutta High Court
The Calcutta High Court bench of Justice Shampa Dutt (Paul) has held that gratuity dues are statutorily protected under the Payment of Gratuity Act, 1972, and do not form part of the liquidation estate of the Corporate Debtor under the Insolvency and Bankruptcy Code, 2016 (IBC). The court held that gratuity payments are outside the waterfall mechanism under Section 53 of the IBC and must be paid in full, irrespective of the resolution plan. It further observed that Section 14 of the Payment of...
[Arbitration Act] Referral Courts Can't Indulge In Enquiry Into Whether Claims Are Time-Barred: Calcutta High Court
The Calcutta High Court bench of Justice Shampa Sarkar has held that in an application under section 11 of the Arbitration and Conciliation Act, 996, it would not be proper for the referral court to indulge in an intricate evidentiary enquiry into the question of whether the claims raised by the petitioner were time-barred or not. “Courts, at the referral stage, can interfere only when it is manifest that the claims are expressly time barred and dead or when there are no subsisting...
Calcutta High Court Upholds Arbitral Award Directing KMDA To Refund Amount Deposited By South City Projects Under MoU
The Calcutta High Court bench of Justices Harish Tandon and Madhuresh Prasad has held that findings of the Arbitrator based material cannot be interfered with within the limited scope of proceedings under section 37 of the Arbitration and Conciliation Act, 1996 (Arbitration Act). Brief Facts: The present appeal has been filed under section 37 of the Arbitration Act against an order passed by the court under section 34 of the Arbitraton Act by which the arbitral award in favor of...
Plaint Cannot Be Rejected Even If No Satisfaction Is Recorded By Court On Bypassing Pre-Institution Mediation U/S 12A Of Commercial Courts Act: Calcutta HC
The Calcutta High Court bench of Justice Raja Basu Chowdhury has held that admission of the plaint by the Commercial Court without recording satisfaction as to whether the requirement of pre-institution mediation under section 12A of the Commercial Courts Act, 2015 (“Commercial Courts Act”) can be bypassed and a case for urgent relief is established, cannot be said to be fatal and the plaint cannot be rejected on this ground alone. Brief Facts: The present revisional application has...
AO Duty Bound To Dispose Of Assessee's Written Objections To Proposed Re-Assessment By Passing Speaking Order: Calcutta High Court
The Calcutta High Court recently upheld an ITAT order deleting the addition of over ₹4 crore made to the income of an assessee under the Income Tax Act, 1961 in reassessment action.A division bench of Chief Justice TS Sivagnanam and Justice Bivas Pattanayak held that the Assessing Officer had erred in not disposing of the written objection submitted by the assessee against the reopening of the assessment.It observed, “The duty cast upon the assessing officer is to decide the written objections...
Govt Authority Must Furnish Security Before Getting Stay On Award U/S 36(3) Of A&C Act, No Special Treatment Can Be Given: Calcutta High Court
The Calcutta High Court bench of Justice Shampa Sarkar has held that special treatment cannot be given to the government while hearing a petition seeking stay on the enforcement of the award under section 36(3) of the Arbitration Act. Every petitioner including the government will have to furnish security or deposit the awarded amount before a stay on the enforcement of the award can be granted. Brief Facts: The present application has been filed seeking stay on the enforcement of...