Award Suffers From Patent Illegality When Adjudication Is Done Without Giving Any Reasons: Himachal Pradesh High Court

The Himachal Pradesh High Court bench of Justice Satyen Vaidya, while a Section 34 petition, has held that when an award has been found to be rendered without giving any reasoning regarding the adjudication of the disputes, the said award suffers from patent illegality apparent on the face of the award, and liable to be set aside. Facts: The petitioner was awarded a contract to carry out certain construction activities on Chilladhar-Bihar road and Jibhi-Bahu road by Respondent No. 2...

Petition Filed After Expiry Of Limitation Period U/S 34(3) Of Arbitration Act Cannot Be Entertained Unless Sufficient Cause Is Shown: Himachal Pradesh HC

The Himachal Pradesh High Court bench of Justice Jyotsna Rewal Dua has held that petition under section 34 of the Arbitration Act cannot be entertained which is filed beyond the prescribed period of 3 months under section 34(3) of the Act in the absence of sufficient cause being shown. Brief Facts Award was passed on 06.11.2023 in favour of the non-applicant/respondent by the learned Sole Arbitrator. The State of Himachal Pradesh, feeling aggrieved against the aforesaid award, has...

Himachal Pradesh High Court Reiterates Limited Scope Of Court Intervention U/S 34 & 37 Of Arbitration & Conciliation Act

The Himachal Pradesh High Court bench of Justice Virender Singh has reiterated that the scope of interference with arbitral awards under Sections 34 and 37 of the Arbitration and Conciliation Act, 1996, is narrow and not akin to appellate jurisdiction. Courts may only interfere if the award exhibits patent illegality or arbitrariness that goes to the root of the matter.Brief Facts:The Government of India, by a notification under Section 3(A) of the National Highways Act, 1956, acquired land in...

While Hearing Appeal U/S 37 Of Arbitration Act, Court Must Confine Itself To Grounds U/S 34 Of Arbitration Act: Himachal Pradesh HC

The Himachal Pradesh High Court bench of Ms. Justice Jyotsna Rewal Dua affirmed that supervisory role of Courts is very restricted in dealing with appeals under Section 37 of the Arbitration Act. Scope of interference in a petition under Section 34 of the Act is very narrow. Jurisdiction under Section 37 of the Act is narrower.Therefore, Courts must be very conservative while dealing with arbitral awards and confine themselves to the grounds strictly available under Section 34 of the Act.Brief...

Deposit Of Awarded Amount In Court Registry Sufficient To Extinguish Liability Arising Under Award: Himachal Pradesh High Court

The Himachal Pradesh High Court bench of Mr. Justice Bipin Chander Negi has held that the deposit of awarded amount in pursuance of an order of the court into the court registry would be equivalent to payment under section 31 of the Arbitration Act. This will extinguish the liability arising under the award for which execution petition would then not be maintainable. Brief Facts The present petition has been filed laying challenge to the impugned judgment dated 23.08.2019, whereby...

Punjab Roadways Cannot Deprive Himachal Pradesh Govt Of Passenger Tax, Interest On Delayed Payment When Its Buses Are Plying On Territory: HC

The Himachal Pradesh High Court recently directed the Punjab Roadways to clear the interest due upon it for delayed payment of passenger tax and surcharge to the HP government. A division bench of Acting Chief Justice Tarlok Singh Chauhan and Justice Satyen Vaidya observed that the body first failed to deposit any tax with the authorities of Himachal Pradesh despite the fact that it had been running its buses within its territory, and then disputed liability of interest. “Thus, in...

Award Cannot Be Set Aside On Grounds Of Mere Illegality Unless Patent Illegality Is Established U/S 34 Of Arbitration Act: Himachal Pradesh HC

The Himachal Pradesh High Court bench of Ms. Justice Jyotsna Rewal Dua, affirmed that 'patent illegality' in the award calls for interference under section 34 of the Arbitration Act but a mere illegality is not patent illegality. It ought to be apparent on the face of the award and not the one which is culled out by way of a long drawn analysis of pleadings and evidence. Brief Facts The National Highway Authority of India (for short 'NHAI') feeling aggrieved against the dismissal of...

Himachal Pradesh HC Upholds Levy Of GST On Mining Royalty Payable Under Mining Concession Granted By State

The Himachal Pradesh High Court has dismissed a writ petition challenging notifications issued by the Central government for levy of GST on Royalty paid by a Mineral Concession Holder for mining concession granted by the State. The Petitioner, a firm engaged in stone crushing, was issued notices and summons under Section 70 of Central Goods and Services Tax Act, demanding GST on royalty. Petitioner's challenge in the year 2023 was based on a seven-Judge Bench decision of the Supreme...

Objection To Tribunal's Jurisdiction U/S 16 Of Arbitration Act Must Be Raised Before Or At Time Of Statement Of Defence: Himachal Pradesh HC

The Himachal Pradesh High Court bench of Justice Jyotsna Rewal Dua affirmed that a party is bound by virtue of Section 16(2) of the Arbitration Act to raise any objection it may have to the jurisdiction of the Tribunal before or at the time of submission of its statement of defence, and at any time thereafter it is expressly prohibited. Brief Facts Objections preferred by the appellants under Section 34 of the Arbitration and Conciliation Act, 1996 (in short 'the Act') against the...

S. 29A Of Arbitration Act Not Applicable To Arbitration Proceedings Which Commenced Before 2015 Amendment: Himachal Pradesh HC

The Himachal Pradesh High Court bench of Justice Jyotsna Rewal Dua affirmed that provisions of Section 29A of the Act will not be applicable to the arbitration proceedings that had started before the Arbitration & Conciliation (Amendment) Act, 2015 came into force.Brief Facts The National Highway Authority of India (for short 'NHAI') feeling aggrieved against the dismissal of its applications on 04.12.2021 under Section 34 of the Arbitration & Conciliation Act, 1996 (for short 'the...

Applicability Of Section 5 Of Limitation Act To Petition U/S 34 Of Arbitration Act Is Excluded: Himachal Pradesh HC

The Himachal Pradesh High Court Bench of Ms. Justice Jyotsna Rewal Dua held that the prescribed period under Section 34(3) of the Arbitration Act is three months and further that given the language used in proviso to Sub-Section 3 of Section 34 of the Act, applicability of Section 5 of Limitation Act to the petition under Section 34 of the Act has been excluded.Brief FactsAward was passed by the learned Arbitrator on 20.02.2023.Signed copy of the award was received by the applicants/objectors on...

Himachal Pradesh High Court Affirms Clean Slate Theory, Declares Tax Authorities' Charge Over Properties After Acquisition Plan Void And Illegal

In an important judgment delivered by the Himachal Pradesh High Court, the claims and red entries of the state tax department over the properties of Su-Kam Power Systems Ltd.(Corporate Debtor) were quashed. The corporate debtor was sold as a going concern under the provisions of the Insolvency and Bankruptcy Code (IBC). The court held that once the company was acquired and resolution plan was approved, all prior claims including claims of the tax authorities are extinguished. Brief...