No. 14 of 2020 -
(04/11/2020) -
(1) This Ordinance may be called the Arbitration and Conciliation (Amendment) Ordinance, 2020. (2) Save as otherwise provided in this Ordinance, it shall come into force at once....
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The decision of Arbitral Tribunal is termed as ‘Arbitral Award’ under the Arbitration and Conciliation Act, 1996 ( Arbitration Act). Pursuant to Section 28(2) of the Arbitration Act, the Arbitral Tribunal shall decide ex aequo et bono [in justice and in good faith] or as amicable compositeur only if the parties expressly authorised it...
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A dispute arises as soon as a person is born and this carries out throughout his life. A small child has a dispute with his parent with regards to his choice of food he eats, games he plays. Dispute can arise between parties where they have common interest in a thing but they have different of opinion on the method of fulfilling that inte...
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With the passage of time, the populace of the country is on hike and so are their opinions. Their opinion forms the basis for their interpretation, it may be a good or a bad interpretation. What would happen in the situation where people starting interpreting the laws? We might be flooded with several interpretations. The […]...
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Section 34 of the Arbitration and Conciliation Act, 1996 (Act) provides for setting aside of an arbitral award by making an application to the Court, on the grounds stated therein. It would not be wrong to say that section 34 of the Act has evolved since 1996 to what we read today. This evolution can […]...
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The arbitrability of disputes for which statutory remedy is provided for becomes a difficult question to answer. Arbitrability refer to whether a dispute could be subjected to arbitration or not.[1] Section 242 and 243 of the Companies Act, 1956 are analogous to sections 397, 398 and 402 of the Companies Act, 1956 which deals with [&helli...
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Indus Biotech Private Limited Vs Kotak India Venture Fund-I (National Company Law Tribunal) -
Indus Biotech Private Limited Vs Kotak India Venture Fund-I (National Company Law Tribunal) FACTUAL BACKGROUND In the present case, the Indus Biotech Pvt. Ltd. (Corporate Debtor) has filed a Interlocutory application under Section 8 of the Arbitration and Conciliation Act, 1996 (Arbitration Act, 1996) where in the underlying Insolvency pe...
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Tecnimont Private Limited & Anr. Vs ONGC Petro Additions Limited (Delhi High Court) -
A petition under Section 34 of the Act is only for setting aside an Arbitral Award on the limited grounds provided under Section 34 of the Act. Therefore, the mere pendency of Section 34 proceedings cannot afford a ground for a party to assert that it has a dispute regarding contractual performance....
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Gammon India Ltd. & Anr. Vs National Highways Authority of India (Delhi High Court) -
The Court concluded that the findings of a Subsequent Award would not render the previous Award illegal or contrary to law. To find the validity of the Award, the Award had to be tested as on the date when it was pronounced, on its own merits....
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In re Cognizance for Extension of Limitation (Supreme Court) -
In re Cognizance for Extension of Limitation (Supreme Court) With reference to the prayer, that the period of validity of a cheque be extended, we find that the said period has not been prescribed by any Statute but it is a period prescribed by the Reserve Bank of India under Section 35A of the Banking […]...
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Patel Engineering Ltd. Vs North Eastern Electric Power Corporation Ltd. (“NEEPCO”) (Supreme Court) -
An arbitral tribunal must decide in accordance with the terms of the contract, but if an arbitrator construes a term of the contract in a reasonable manner, it will not mean that the award can be set aside on this ground. Construction of the terms of a contract is primarily for an arbitrator to decide unless the arbitrator construes the c...
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In case titled ‘Sundaram Finance v Abdul Samad & Anr. (Civil Appeal No 1650 of 2018)‘ decided on 15.02.2018, the Hon’ble Supreme Court of India has clarified the anomaly with regard to the appropriate jurisdiction for enforcement of an arbitral award. The Hon’ble Supreme Court has held that enforcement of an Arbit...
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Afcons Infrastructure Limited Vs Konkan Railway Corporation Limited (Bombay High Court) -
Despite the repeated appraisal of arbitral clauses in contracts between parties by both the legislature and judiciary as the key to arbitration becoming the preferred mode for commercial dispute resolution as long as such clauses remain impartial, several Government organizations and Public Sector Undertakings have one-sided clauses for d...
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Centrotrade Minerals and Metal Inc. Vs. Hindustan Copper Ltd. (Supreme Court of India) -
The Court herein has settled that when the party has been given enough opportunity accorded to them and has failed to take advantage of the same during the arbitral proceedings, it cannot later go on to say that fair hearing was not given to the party....
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The term Artificial Intelligence itself explains that technology having human capabilities of performing tasks that require human intelligence. This topic is intuitively interesting that one day our disorderly, frenzied human disputes will be determined by the calm, all-knowing logic of a fair and neutral electronic decision maker. While ...
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The Respondent initiated arbitration proceedings for the outstanding fees and the Plaintiff had failed to pay such charges. As the proceedings are substantially for recovery of money, it leads to a commercial relationship between the parties under Section 45 of the Act;...
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What is Statutory Arbitration? There are various statutes providing for dispute resolution by way of arbitration, even though parties did not have an express arbitration clause between them i.e., Section 7-B of Telegraph Act,1885, Section 52 of Electricity Act, Section 76(2) of Electricity (Supply) Act, etc. In the same manner even Sec...
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It is incumbent upon the Courts to see the validity of an arbitration agreement, that it passes the test of the requirement of Indian Stamp Act, 1899, before considering an application under Section 11 of the Arbitration & Conciliation Act, 1996....
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Quippo Construction Equipment Limited Vs Janardan Nirman Pvt. Limited (Supreme Court); Civil Appeal No. 2378 of 2020; Dated: 29/04/2020 FACTS The Respondent, a business of infrastructure development activities approached the Claimant who is engaged in a business of providing equipment for infrastructure activities. The Claimant gave cer...
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Introduction: 1. Arbitration has become exceptionally strong and widely accepted as a means of resolving disputes. ‘ 2. Exactly how widely accepted is probably impossible to know, but some commentators have suggested that a figure as high as 90% of all international contracts are governed by an arbitration clause. 3. Rapid globalization...
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Do I believe in arbitration? I do. But not in arbitration between the lion and the lamb, in which in the morning the lamb is found inside the lion. – Mr. Samuel Gompers Besides all the advantages and amenities available to refer the disputes to arbitration, it is one of the cornerstone drawbacks of the […]...
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South East Asia Marine Engineering and Construction Ltd. Vs Oil India Ltd. (Supreme Court) -
South East Asia Marine Engineering and Construction Ltd. Vs Oil India Ltd. (Supreme Court) It is a settled position that a Court can set aside the award only on the grounds as provided in the Arbitration Act as interpreted by the Courts. Recently, this Court in Dyna Technologies Pvt. Ltd. v. Crompton Greaves Ltd. [2019 […]...
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Spentex Industries Ltd. Vs Quinn Emanuel Urquhart & Sullivan LLP (Delhi High Court) -
Spentex Industries Ltd. Vs Quinn Emanuel Urquhart & Sullivan LLP (Delhi High Court) In the given case, the plaintiff is seeking the main relief to pass a decree of declaration, declaring that the Letter of Engagement as well as arbitration clause being Article 16 of the Letter of Engagement is null and void, inoperative and […]...
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It is the speedy and effective settlements of dispute which are the two most important attributes for the proper functioning of the justice delivery system and also important with respect to the faith of the business entities upon such system. Considering such a scenario, arbitration has emerged as an efficient alternative to the public j...
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Arbitration is of the most popular method of ADR and infact it has gained immense popularity amongst business entities and the results are quite positive and this resulted in having the Statutory Arbitration under the provisions of MSME. Arbitration is a simplified version of a trial proceedings involving limited discovery and simplifie...
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INTRODUCTION – ALTERNATIVE DISPUTE RESOLUTION MECHANISM The Indian judicial system is known for its heavy burden, long years of litigation which is the reason, alternative dispute resolution mechanisms have been put into place to resolve disputes speedily and arrive at a settled situation for parties under a commercial understanding. Ar...
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INTRODUCTION – SECTION 29A OF THE ARBITRATION & CONCILIATION ACT, 1996 Section 29A of the Arbitration & Conciliation Act, 1996 was amended vide Arbitration & Conciliation (Amendment) Act, 2015 w.e.f. 23.10.2015 to set ‘Time Limit for arbitral award’ wherein it was stated that an award shall be rendered within twe...
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In re Cognizance for Extension of Limitation (Supreme Court) -
It is hereby ordered that all periods of limitation prescribed under the Arbitration and Conciliation Act, 1996 and under section 138 of the Negotiable Instruments Act 1881 shall be extended with effect from 15.03.2020 till further orders to be passed by this Court in the present proceedings....
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Quippo Construction Equipment Limited Vs Janardan Nirman Pvt. Limited (Supreme Court) -
It was possible for the respondent to raise submissions that arbitration pertaining to each of the agreements be considered and dealt with separately. It was also possible for him to contend that in respect of the agreement where the venue was agreed to be at Kolkata, the arbitration proceedings be conducted accordingly....
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National Agricultural Cooperative Marketing Federation of India v. Alimenta S.A. (Supreme Court of India) -
The Court was satisfied that enforcement of such foreign award shall be against the public policy of India and therefore, the award was denied enforcement. This Court further held that the award could be enforced as per Section 7 (1) (a) (i) of the Foreign Awards Act which protects the parties who are under inability to perform their obli...
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Today the current scenario in India in regard to Business and Market, there is one answer with all the Business Houses and in one word “that the market is bad, very bad” and the reasons for the same is being shifted to Government of India and its policies and newly sated laws. There is no […]...
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Buying Home is a pleasant event for every person and owning a beautiful Home might be the biggest dream of their life. A person invests his hard earned money to get a shelter for his family but at times all these dreams are shattered....
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Enforceability of Arbitration Clause in an Unstamped Arbitration Agreement Vis-À-Vis Section 9 and Section 11 of the Arbitration and Conciliation Act, 1996; A Conundrum...
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Mankastu Impex Private Limited Vs Airvisual Limited (Supreme Court) -
Since the reference to Hong Kong as 'place of arbitration' was not a simple reference as the 'venue' for the arbitral proceedings; but a reference to Hong Kong was for final resolution by arbitration administered in Hong Kong...
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Arbitration comprises of a panel of Arbitrators which can be selected by the parties and such process is a very common gesture to analyse and consummate a dispute through understanding the disparity between any contractual obligations or indenture. Notwithstanding, such freedom of process imparted to the parties, “The Arbitration and Co...
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Oriental Insurance Co. Ltd. Vs M/s Tejparas Associates & Exports Pvt. Ltd. (Supreme Court of India) -
Wherein condonation of delay sought was not for filing the petition under Section 34 of Arbitration Act, 1996 for the first time but for the delay of 8 days in re-presenting the petition beyond the date fixed after it was returned under Order 7 Rule 10 of the Civil Procedure Code before the District Judge,...
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M/s. Canara Nidhi Limited Vs M. Shashikala And Others (Supreme Court) -
M/s. Canara Nidhi Limited Vs M. Shashikala And Others (Supreme Court) Conclusion: Since proceedings under Section 34 were summary proceedings and was not in the nature of a regular suit and in the arbitration proceedings, the parties had sufficient opportunity to adduce oral and documentary evidence, therefore, there was no necessity of a...
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Notification No. S.O. 3154(E) -
(30/08/2019) -
Central Government hereby appoints the 30th August, 2019 as the date on which the provisions of the section 1, section 4 to section 9 [both inclusive], section 11 to section 13 [both inclusive] and section 15 of Arbitration and Conciliation (Amendment) Act, 2019. MINISTRY OF LAW AND JUSTICE (Department of Legal Affairs) NOTIFICATION New...
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Notification No. 33 of 2019 -
(09/08/2019) -
(1) This Act may be called the Arbitration and Conciliation (Amendment) Act, 2019.
(2) Save as otherwise provided in this Act, it shall come into force on such date as the Central Government may, by notification in the Official Gazette, appoint and different dates may be appointed for different provisions of this Act and any reference ...
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While there has been a plethora of legislative changes, the air of arbitration as a quicker and preferred mode of dispute resolution mechanism has also been contributed by judiciary through its pronouncements. The courts in India recently have made consistent efforts to free arbitration from laches....
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Responding to the claims of inefficiency and unpredictability of the Arbitration Act, 1940, the Indian Government enacted the 1996 Arbitration and Conciliation Act based upon the UNCITRAL Model Law. The new Act reflected the Parliament’s will to expedite the arbitration process, modernize the arbitration regime, increase acceptance to p...
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South Delhi Municipal Corporation Vs South Delhi Municipal Corporation (Supreme Court of India ) -
The agreement between the parties provides the competent officer and the Commissioner with supervisory control over the execution of work and administrative control over it from time to time and thus to prevent disputes. The intention is not to provide for a forum for resolving disputes. Thus, no Arbitrator could have been appointed by th...
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Notification No. S.O. 5674(E) -
(12/11/2018) -
In the Fourth Schedule to the Arbitration and Conciliation Act, 1996, under the heading ‘Sum in dispute’, against the entry ‘Above Rs.10,00,00,000 and up to Rs.20,00,00,000’, the model fee is inadvertently mentioned as ‘Rs.12,37,500 plus 0.75 per cent. of the claim amount over and above Rs.1,00,00,000/’ instead of ‘Rs.12,37,...
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Col. J.P.S. Yadav Vs South Eastern Coalfields Limited (High Court Chhatisgarh) -
Col. J.P.S. Yadav Vs South Eastern Coalfields Limited (High Court Chhatisgarh) Consequently, evaluating the facts, the finding that the notices were sent under the camouflage cover of SECL concealing the name of the sole arbitrator on 20.9.1993 and 28.10.1993 would be important. Further, the Court held that no service was affected to ...
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Whether incorporating the ‘Arbitration Clause’ in any ‘Contract Agreement’ is commendable? OR, the Independent ‘Agreement of Arbitration’ is better?...
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Sudhir Gopi Vs Indira Gandi National Open Univercity and ANR. (Delhi High Court) -
Decision of the arbitral tribunal to pierce the corporate veil is fundamentally flawed. It falls foul of the fundamental policy of Indian law that recognises that a company is an independent juristic person....
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Jhansi-Orai Tollyway Pvt. Ltd. Vs Bank of India (Chhattisgarh High Court) -
Oppugning legality, validity and correctness of the order dated 10-2-2014 passed by the trial Court (judicial authority) in Civil Suit No. 207-A/2013 by which that Court in exercise of power conferred under Section 8(1) of the Arbitration and Conciliation Act, 1996 (hereinafter called as the ‘AC Act, 1996’) relegated the parties to ar...
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Rahul Somani Vs Ramgopal Somani (Chhattisgarh High Court) -
Application for termination of mandate of an Arbitrator under Section 14(1) of the Arbitration and Conciliation Act, 1996, is maintainable before the principal Civil Court of original jurisdiction i.e. the District Judge and not before the High Court....
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M/s. Shakti International Private Limited Vs M/s. Excel Metal Processors Private Limited (Bombay High Court) -
The above Court Receivers Report dated 28th December, 2016 (Report) is filed by the Court Receiver, High Court, Bombay, seeking directions on Whether the Registry should accept the matters wherein the Arbitral Tribunal appoints the Court Receiver, High Court, Bombay, as a Receiver for execution of orders passed by it etc....
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Comments invited on working paper of high level committee (HLC) to review Institutionalisation of Arbitration Mechanism in India by 7 April 2017...
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In order to ensure speedy resolution of commercial disputes and to facilitate effective conduct of international and domestic arbitrations raised under various agreements Government has decided to constitute a High Level Committee (HLC) in the Ministry of Law and Justice...
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While the Indian Government is going all out to create a positive India outline, however, it is a reality that the World Bank's Ease of Doing Business 2015 report puts India as low as 186 on the criteria of contract enforcement. India strongly believes in the rule of law but an important aspect in doing business is factored out of the eas...
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NO. 3 OF 2016 -
(31/12/2015) -
in the case of an arbitration other than international commercial arbitration, the principal Civil Court of original jurisdiction in a district, and includes the High Court in exercise of its ordinary original civil jurisdiction, having jurisdiction to decide the questions forming the subject-matter of the arbitration if the same had been...
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The Delhi high court has held that the foreign arbitration award in the dispute between US firm Penn Racquet Sports and Indian company Mayor International Ltd was enforceable in this country according to the Arbitration and Conciliation Act. The awar...
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The Supreme Court (SC) ruled last week that a guarantor outside an arbitration agreement cannot be made a party to the arbitration proceedings. It reversed the judgment of the Delhi high court which had asked the guarantor to comply with the award of...
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Purpose of Arbitration Act is to provide quick redressal to commercial dispute by private Arbitration. Quick decision of any commercial dispute is necessary for smooth functioning of business and industry. Internationally, it is accepted that normally commercial disputes should be solved through arbitration and not through normal judicial...
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The Supreme Court stated last week that concealment of facts from an arbitrator is an act of fraud and new facts which have a bearing on the award should be allowed to be brought before him. The court stated so while allowing the appeal of US-based Venture Global Engineering against the ruling of the Andhra Pradesh high court in its dispu...
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The Supreme Court has stated that the Arbitration and Conciliation Act would apply to all civil disputes, and not merely to commercial disputes. It set aside the view of the Karnataka high court in the case, H Srinivas Pai vs H V Pai, in which the high court remarked that the law will apply only to “commercial agreement matters and inte...
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In an arbitration dispute, the intention of the parties as reflected in the agreement should be followed, a division bench of the Delhi high court stated last week while setting aside the order of the single judge bench in a dispute between Prime Industries and Seil Ltd. In this case, the agreement stated that in case of disputes, they sh...
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The Delhi high court last week declared that the award of the sole arbitrator appointed by the International Court of Arbitration in the dispute between Fittydent International GmBH and Brawn Laboratories was enforceable in India. The award was in favour of the foreign firm, which had a licence agreement with the Indian firm for manufactu...
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A company cannot enter into an arbitration agreement even before it is formally registered under the Companies Act, the Supreme Court (SC) ruled in the case, Andhra Pradesh Tourism Development Corporation vs Pampa Hotels Ltd. However, the promoters of the company can enter into such an agreement if it was warranted by the terms of incorpo...
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Dr.M.Veerappa Moily, Minister of Law and Justice will release a paper on Proposed Amendments in Arbitration and Conciliation Act, 1996 here tomorrow. The Arbitration and Conciliation Act, 1996 deals with law relating to domestic arbitration, international commercial arbitration and enforcement of foreign arbitral awards. The objects and ...
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Dalco Engineering Pvt. Ltd. Vs Shree Satish (Supreme Court of India) -
The Supreme Court (SC) last week dismissed the appeal of Maharashtra against the order of the Bombay high court in an arbitration dispute with Hindustan Construction Company Ltd. The company was given Stage IV of the Koyna Hydro Electric Project and differences arose over the amounts due and other issues. The disputes were referred to arb...
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With a very laudable objective of speedy disposal of cases, Alternative Dispute Resolution Mechanism (ADR) is mooted. Among the modes of Alternative Dispute Resolution Mechanism, Arbitration is most discussed issue always as many agreements or contracts contain an Arbitration Clause now-a-days. The difference between Arbitration Mechanis...
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Unless there is an express bar under law and when there is an arbitration agreement either express or implied, a dispute between or among the parties can be referred to an Arbitrator or panel of Arbitrators as specifically agreed to. As everybody knows, Alternative Dispute Resolution Mechanism is mooted to reduce the burden in traditional...
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The Supreme Court has ruled that an arbitral tribunal has no power to direct payment of compound interest or interest on interest on the award amount from the date of the award to the date of payment. It declared in the appeal case, State of Haryana vs SL Arora & Co, that the Punjab Haryana high court was wrong in taking a contrary view. ...
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A brief about Arbitration Mechanism: In order to reduce the delay in courts in the process of traditional adjudication mechanism, the Alternative Disposal Mechanism (ADR) was mooted. The dispute resolution through Conciliation, Arbitration and Mediation etc., is regarded as alternative mechanism to resolve the disputes between or among th...
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Kwality Spinning Mills Ltd. & Anr. Vs. India Cements Capital Finance Ltd. & Anr. (Madras High Court) -
The First Respondent had filed a claim petition against the Petitioners before the arbitrator seeking a sum of over Rs.57 lakhs stated to be due under a hire-purchase agreement. The Petitioners raised a specific plea before the arbitrator that the claim petition was not maintainable as the first Petitioner had been declared a sick industr...
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