MP High Court Sets Aside Arbitral Award In Insulator Supply Dispute For Patent Illegality

Setting aside an arbitral award in a dispute over the supply of disc insulators for transmission lines, the Madhya Pradesh High Court has found that the award was vitiated by patent illegality, noting that the arbitrator overlooked key provisions of the Contract Act and returned findings that did not align with the contractual record. The Bench of Justices Vivek Rusia and Pradeep Mittal said the November 16, 2018 award was marked by fundamental errors. It pointed out that the arbitrator had...

MP High Court Sets Aside Commercial Tax On Diamond Cement For Sale Of Food In Factory Canteen

The Madhya Pradesh High Court has, applying settled law, set aside the levy of commercial tax on subsidised food supplied in a factory canteen run as a statutory welfare measure in a 1995–96 assessment involving Diamond Cement, while upholding the rest of the demand.The court, however, upheld tax liability on scrap sales, coal purchases, and denial of set-off on certain items.The bench, consisting of Justice Vivek Rusia and Justice Pradeep Mittal, partly allowed the writ petition filed by...

Madhya Pradesh High Court Holds ICA Award Void, Says Only CJI Can Appoint Arbitrator

The Madhya Pradesh High Court has held that an arbitral award against Ssangyong Engineering and Construction Company Ltd is a nullity in law, as the dispute was an international commercial arbitration and, under Sections 11(9) and 11(12) of the Arbitration and Conciliation Act, 1996, only the Chief Justice of India or a person or institution designated by him could appoint the arbitrator. The court noted that Ssangyong is a company incorporated in the Republic of Korea, and therefore the...

Arbitration Can Proceed Despite Parallel Criminal Proceedings In Private Disputes: Madhya Pradesh High Court

The Madhya Pradesh High Court recently reiterated that parallel criminal proceedings between private parties do not bar arbitration unless the allegations have a public character and proceeded to appoint an arbitrator in a dispute arising out of purchase orders between the parties. A single bench of Justice Vivek Jain emphasised, observing, “Be that as it may be, but it is settled in law that even where criminal proceedings are pending parallelly, then also arbitration proceedings can continue...

Offences Under IBC Triable By Special Court Where Registered Office Is Located: Madhya Pradesh High Court

The Madhya Pradesh High Court on 9 April held that offences under the Insolvency and Bankruptcy Code, 2016 (IBC) must be tried by the Special Court having jurisdiction over the place where the company's registered office is situated, and not on the basis of the residence of directors or the place of alleged non-compliance. A Single-Judge Bench of Justice Rajesh Kumar Gupta directed the Insolvency and Bankruptcy Board of India to file its complaint against Vinay Bhadauria before the...

Delhi Only Venue, Bhopal Court Has Jurisdiction In Beyond Malls–Century 21 Dispute: MP High Court

The Madhya Pradesh High Court has recently held that since Beyond Malls LLP and Century 21 Malls Pvt Ltd had agreed that courts where the leased property is located would have jurisdiction, and Century 21 first approached the Bhopal court for interim relief, the Bhopal court alone would have authority over all subsequent arbitration proceedings. A Division Bench of Justice Vivek Rusia and Justice Pradeep Mittal observed, “Therefore, in view of the above and as per clause 17.9 of the Agreement,...

Even Consent Cannot Cure Lack of Jurisdiction In HC Appointment Of Arbitrator In ICA: MP High Court

The Madhya Pradesh High Court has held that an arbitrator appointed by a High Court in an international commercial arbitration has no authority in law to decide the dispute, and any award passed in such proceedings is void. A bench of Justice Vivek Rusia and Justice Pradeep Mittal said, “The conjoint reading of Section 11(6) and Section 11(12)(a), ACA makes it abundantly clear that the power to appoint an arbitrator in an ICA lies exclusively with the Supreme Court. The High Court has no...

Approved Resolution Plan Binding On Revenue, Stamp Authorities; Mutation Cannot Be Denied: MP High Court

The Madhya Pradesh High Court has held that an approved resolution plan under Section 31 of the Insolvency and Bankruptcy Code is binding on all authorities, including revenue and stamp authorities, and that refusal to carry out mutation in land records would be contrary to the statutory mandate.A single-judge Bench of Justice Sandeep N. Bhatt, while allowing an interim application, observed that the inaction of revenue authorities in mutating the petitioner's name despite an approved resolution...

Independence And Impartiality Required Of All Arbitrators, Not Just Presiding One: Madhya Pradesh High Court

The Madhya Pradesh High Court on 31 March held that every arbitrator in a tribunal, including party-appointed arbitrators, must remain independent and impartial under the Seventh Schedule and Section 12(5) of the Arbitration and Conciliation Act, 1996. Justice Vivek Jain appointed Justice K.K. Lahoti as the sole arbitrator to adjudicate the dispute between Hewlett Packard Enterprise India Private Limited (HP/petitioner) and Bhopal Smart City Development Corporation Limited (BSCC/respondent),...

MSME Council Justified In Proceeding To Arbitration Without Fresh Notice When Party Skips Conciliation: Madhya Pradesh HC

The Madhya Pradesh High Court has held that where a party, despite being granted an opportunity, fails to file a reply and declines to participate in conciliation proceedings, the MSME Facilitation Council is justified in proceeding to arbitration without issuing a separate notice. A Division Bench of Justice Vivek Rusia and Justice Pradeep Mittal observed, “Once the petitioner had declared that he was interested in participating in the conciliation proceedings, the Facilitation Council had no...

MP High Court Restores Suit, Says Bar On Unregistered Partnerships Not Applicable As Claim Not Made As Partner

The Madhya Pradesh High Court at Jabalpur has set aside a trial court order rejecting a suit at the threshold, holding that the bar on suits by unregistered firms could not be invoked where the plaintiff was seeking declaration of his rights in the land on the basis of the money he had invested. A single judge bench of Justice Deepak Khot observed, "In fact, it is a case of the appellant that the appellant has invested money with defendants, who are said to be partners in the partnership firm...

Apostilled Arbitral Awards From Hague Convention Signatory Countries Enforceable If Authenticity Undisputed: Madhya Pradesh HC

The Madhya Pradesh High Court at Indore has held that apostilled arbitral award copies (documents certified as genuine in countries with which India has reciprocal recognition of such authentication) are valid for enforcement where their authenticity is undisputed, while declaring a Texas-seated foreign award of USD 623,169.37 in favour of PerkinElmer US LLC enforceable. Rejecting objections by Ilishan Biotech Private Limited on non-production of original documents, a single-judge bench of...