Delay In Receiving Award Due To Default In Paying Arbitral Fees Cannot Be Held Against Party Seeking To Challenge Award While Calculating Limitation: J&K HC

The Jammu and Kashmir High Court held that since the delivery of a signed copy of the arbitral award was the mandatory requirement under the arbitration act therefore, the limitation for challenging the said award would arise only after the said signed copy is received by the party seeking to challenge the same.The petitioner had not received the certified copy of the award dated 01.03.2024 as the arbitrator had exercised its power under the section 39 of the arbitration act for withholding the...

Filing Written Statement Does Not Waive Right To Arbitration If Preliminary Objection Is Raised At Outset: Jammu & Kashmir High Court

The Jammu and Kashmir High Court bench of Justice Rajnesh Oswal held that mere filing of the written statement in a suit does not constitute a waiver of right to arbitration if the party has raised a preliminary objection in respect of the arbitration clause at the outset. Brief Facts: The matter pertained to a judgment issued by the Principal District Judge, Jammu. The trial court held that the suit filed by S. Charanjeet Singh (“Appellant”) was not maintainable. It granted the...

Moratorium Period Under IBC Does Not Bar Payment Of Compensation Under NI Act: J&K High Court Orders ₹4 Crore Interim Compensation

The Jammu and Kashmir High Court held that the declaration of a moratorium would not bar the complainant from filing a complaint under the NI Act. The court said that the debtor cannot take refuge under the Code to frustrate proceedings under the NI Act if he is found liable to pay compensation in the proceedings.Justice Puneet Gupta held that Section 14 of the IBC, which places a moratorium on the institution of suits or the continuation of pending suits, does not include criminal proceedings,...

Party Cannot Be Forced To Accept Arbitrator Who Has Conflict Of Interest, Violates Principles Of Natural Justice And Fair Trial: J&K High Court

The Jammu and Kashmir High Court held that a party could not be forced to accept an arbitrator who has a conflict of interest, as the same would violate the principles of a fair trial. The court held that the Perpetual Lease Deed, as well as the Byelaws, which provide for the Registrar, Cooperative Societies to be the sole arbitrator for adjudicating disputes between the petitioner and the department, would be against the law.Chief Justice Tashi Rabstan observed that the Registrar, who was...

Contract Which Is Renewable Based On 'Criteria Of Performance' Is Deemed Renewed Unilaterally After Criteria Is Met, Cannot Be Terminated: J&K HC

The Jammu and Kashmir High Court held that where renewal of contract is based on the criteria of performance, the contract is deemed to have to been extended, if the said criteria is met. It also held that courts cannot interfere with the interpretation given by an Arbitrator if the same is reasonable and not opposed to logic.In this case, the Arbitrator was to determine legality of breach of agreement by interpreting the agreement-clause which said that “the agreement between the parties was...

Irregularity & Curable Defect Cannot Be Grounds For Dismissal Of Application U/S 34 Of Arbitration Act: J&K High Court

The Jammu & Kashmir and Ladakh High Court Bench of Justice Sanjeev Kumar and Justice Puneet Gupta held that the failure of the Chief Engineer to sign the pleadings, which were signed by the Garrison Engineer would only be an irregularity and a curable defect and would not entail dismissal of the application filed under Section 34 of the Arbitration Act without providing opportunity to the appellants to correct the irregularity. Additionally, the court held that the defect was...

Existence Of "Proceeds Of Crime" Is Pre-Condition For Money-Laundering: J&K High Court Quashes PMLA Complaints In Alleged ₹250 Cr Scam

Underscoring the necessity of the existence of "proceeds of crime" for constituting an offence under the Prevention of Money-Laundering Act, 2002 (PMLA) the Jammu and Kashmir and Ladakh High Court has reiterated that in the absence of such proceeds, no money-laundering offence could arise.Quashing complaints filed under the PMLA in an alleged 250 crore scam Justice Javed Iqbal Wani observed,“Having regard to the aforesaid position obtaining in the matter, inasmuch as the admitted facts noticed...

Award Passed By Ineligible Arbitrator Can Be Set Aside U/S 34 Of Arbitration Act: Jammu And Kashmir HC

The Jammu & Kashmir and Ladakh High Court bench of Justice Sanjay Dhar has held that award passed by an ineligible arbitrator is liable to be set aside under section 34 of the Arbitration Act. Brief Facts The present petition has been filed under section 34 of the Arbitration Act against an award passed by the Arbitrator by which the claimant has been has been held entitled to recover an amount of Rs.25,20,969/ along with interest @8% per annum. Petitioners started purchasing...

Fresh Arbitrator Can Be Appointed By Court U/S 14 Of Arbitration Act If Proposed Arbitrator Is Ineligible U/S 12(5): J&K And Ladakh HC

The Jammu & Kashmir and Ladakh High Court bench of Chief Justice Tashi Rabstan affirmed that when the arbitration clause is found to be foul with the amended section 12(5) of the Arbitration Act, the appointment of the arbitrator would be beyond the pale of the arbitration agreement. In such eventuality, the court can be approached under section 14 of the Arbitration Act for seeking substitution of the arbitrator.Brief FactsThe present petition has been filed by the petitioner under Sections...

HC Upholds J&K Govt's Decision To Withdraw Budgetary Support Scheme 2018 For Reimbursement Of IGST To Manufacturing Units

The Jammu and Kashmir and Ladakh High Court has upheld the UT government's decision to withdraw the 'Budgetary Support Scheme', notified in the year 2018 for providing budgetary support to manufacturing units in the UT, by reimbursement of Integrated Goods and Service Tax. A division bench of Justices Sanjeev Kumar and Rajesh Sekhri observed that the Scheme did not create any legitimate expectation in the units nor did it attract promissory estoppel on the government. It reasoned that the...

Any attempt To Modify Award Under Section 34 is not permissible: J&K High Court

The Jammu & Kashmir and Ladakh High Court has set aside a judgment from a subordinate court modifying an arbitral award while underscoring that under Section 34 of the J&K Arbitration and Conciliation Act, 1997, courts lack the authority to modify arbitral awards and can only either uphold or set aside the awards.The question arose from an award in which the Arbitral Tribunal directed the J&K Government to pay over ₹78.92 crores to the claimants, along with interest. The J&K...

Disputes Predominantly Civil But Involving Elements Of Criminality Not Automatically Excluded From Arbitration: Jammu and Kashmir High Court

The Jammu and Kashmir High Court bench of Chief Justice N. Kotiswar Singh has held that a dispute predominantly civil but involving elements of criminality is not automatically excluded from arbitration. The bench noted that unless there is a specific allegation of the parties engaging in an agreement amounting to criminal conspiracy, there should be no blanket prohibition on referring such disputes to arbitration. Brief Facts: M/s Tata Power Solar (Petitioner) successfully won...