Top Stories
When Can Court Remand Arbitral Award To Tribunal Under S.34/37 Arbitration Act ? Supreme Court Explains
The Supreme Court Constitution Bench recently held that the powers of Courts to remand arbitral awards back to the Tribunal under S. 34(4) of the Arbitration and Conciliation Act 1996 cannot be seen as a straight-jacket formula. The Court observed that an award should be remitted back only if there is a possibility to correct a defect in the award, but if the entire award suffers from substantial injustice and patent illegality, remittance should be avoided. The Constitution...
Courts Can Modify Arbitral Awards In Certain Circumstances Under S.34/37 Arbitration Act: Supreme Court By 4:1
Answering a reference, a Constitution Bench (by 4:1) of the Supreme Court held that Appellate Courts have limited powers to modify arbitral awards while exercising powers under either Section 34 or 37 of the Arbitration and Conciliation Act, 1996.The majority judgment by Chief Justice of India Sanjiv Khanna held that the Courts have a limited power under Section 34/37 to modify arbitral awards. This limited power can be exercised in the following circumstances :1. When the award is severable by...
S. 8 IBC | Service Of Demand Notice On Corporate Debtor's Key Managerial Personnel Is Valid To Trigger Insolvency Process : Supreme Court
The Supreme Court on Tuesday (April 29) upheld the delivery of a demand notice under Section 8 of the Insolvency and Bankruptcy Code, 2016 (“IBC”) to the corporate debtor's Key Managerial Personnel (KMP), stating that the delivery of the notice to the KMP substantially complies with the requirement of Section 8 of IBC. Setting aside the National Company Law Appellate Tribunal (NCLAT) ruling, the bench of Justices JB Pardiwala and R Mahadevan allowed the Operational Creditor's appeal, stating...
S.34 Arbitration Act | Respect Arbitral Autonomy; Judicial Interference Should Be Minimal : Supreme Court
The Supreme Court reiterated that the courts cannot go beyond the scope of Section 34 of the Arbitration & Conciliation Act, 1996 (“Arbitration Act”) while deciding an application for setting aside of an award."the role of the court under Section 34 of the 1996 Act is clearly demarcated. It is a restrictive jurisdiction and has to be invoked in a conservative manner. The reason is that arbitral autonomy must be respected and judicial interference should remain minimal otherwise it will...
Central Excise Tariff Act | Test Reports Justifying Reclassification Must Be Disclosed to Manufacturer : Supreme Court
The Supreme Court ruled that when a test report forms the basis for reclassification of the petrochemical products, necessitating a higher duty, than the copy of such test reports ought to be furnished to the manufacturer-taxpayer. The bench of Justices Abhay S. Oka and Ujjal Bhuyan set aside the ₹2.15 crore central excise duty demand against M/s Oswal Petrochemicals Ltd., holding that the revenue authorities had violated principles of natural justice by failing to share key evidence—such as...
Arbitral Award For Claims Not Included In IBC Resolution Plan Can't Be Enforced: Supreme Court
The Supreme Court recently allowed an appeal challenging the enforcement of an arbitral award passed by the Micro and Small Enterprises Facilitation Council (MSEFC) against Electrosteel Steels Ltd., holding that the award was non-executable in view of the resolution plan approved under Section 31 of the Insolvency and Bankruptcy Code (IBC), 2016.“we have no hesitation to hold that upon approval of the resolution plan by the NCLT, the claim of the respondent being outside the purview of the...
Copyright Claim Over Songs In Restaurants: Supreme Court Stays Delhi HC Direction In Phonographic Performance Ltd's Plea
The Supreme Court has stayed Delhi High Court's direction to Azure Hospitality Pvt. Ltd. to pay Phonographic Performance Ltd. (PPL) as per the tariff of Recorded Music Performance Ltd. (RMPL), as if PPL were a member of RMPL, for playing songs from PPL's catalogue.A bench of Justice Abhay S. Oka and Justice Ujjal Bhuyan issued notice in PPL's special leave petition challenging the judgment of the division bench of the High Court that modified a temporary injunction granted by a single judge...
Supreme Court Flags Long Submissions In S.34/37 Arbitration Act Proceedings, Says Timelimit Needs To Be Imposed
On April 21, the Supreme Court expressed its displeasure over the prolonged arguments and submissions made by members of the Bar in arbitration proceedings under Sections 34 and 37 of the Arbitration and Conciliation Act, 1996.The Court noted that excessively long oral submissions force judges to invest significant time in reviewing extended arguments, often supported by a large volume of case law, regardless of their relevance. This practice, particularly in high-stakes matters, leads to...
'In Policy Domain' : Supreme Court Dismisses Plea Seeking Guidelines Against Fraudulent Cryptocurrency Transactions
The Supreme Court recently dismissed a petition seeking guidelines from the Court in exercise of its jurisdiction under Article 142 of the Constitution to prevent and penalize fraudulent transactions involving cryptocurrencies.A bench of Justices BR Gavai and AG Masih passed the order, being of the view that the prayers made were within the domain of the legislature and the executive. Be that as it may, the bench left it open for the petitioners to make a representation before the appropriate...
Arbitral Tribunal Can Proceed Against Party Though They Weren't Served With S.21 Notice Or Made Party In S.11 Application : Supreme Court
The Supreme Court recently observed that not being served with the notice invoking arbitration under Section 21 of the Arbitration and Conciliation Act, and not being made a party in the Section 11 application (for appointment of arbitrator), are not sufficient grounds to hold that a person cannot be made party to arbitral proceedings. "A notice invoking arbitration under Section 21 of the ACA is mandatory...and it is a prerequisite to filing an application under Section 11. However, merely...