The Contours of “Prima Facie”: Section 11 and the Recent Trends of the Evolving Expansion of Pre-Arbitral Judicial Review in Indiaby
Pallavi Singh Rao*, Sukanya Singh** and Tridib Mandal***
Appointment of arbitrator
Can a Permissive Clause in a Partnership Deed be a Valid Arbitration Agreement? Supreme Court Stays Proceedings
At the hearing, it was contended that the said clause was permissive in nature and does not constitute a binding arbitration agreement within the meaning of Section 7.
Not Orwell’s ‘Big Brother’: Supreme Court Clarifies Which Court Can Extend Arbitral Mandate Under Section 29-A
“The ‘Court’ under Section 29A shall be the Civil Court of ordinary original jurisdiction in a district and includes the High Court in exercise of its original civil jurisdiction under Section 2(1)(e), and shall not be the High Court or the Supreme Court under Section 11(6) of the Act.”
Delhi High Court: Disputes arising after execution of settlement agreement remain arbitrable
“Execution of a full and final settlement may not preclude a party from taking recourse to arbitration if a dispute arises from the settlement itself”
Referral Court has jurisdiction to examine whether a non-signatory is a veritable party to arbitration agreement: Supreme Court
If the referral court finds that a party is not a veritable party, the matter will not be left to the Arbitral Tribunal as it will relegate the referral court to the status of a monotonous automation.
Delhi High Court rules on Binding Nature of Arbitration Clause in Insurance Policies Issued After 2023 IRDAI Circular
The respondent submitted that no arbitration clause existed in light of the IRDAI Circular dated 27-10-2023 and Gazette Notification dated 23-1-2024, which had de-notified and superseded arbitration clauses in fire insurance policies.
Whether non-operation of arbitration clause due to statutory amendments would negate the entire arbitration mechanism? Supreme Court explores
“The arbitration agreement must be interpreted in a purposive manner, but not literally so as to enable the parties to pursue the intended dispute redressal mechanism of contract”.
Madhya Pradesh HC appoints Retd. Justice Alok Verma as arbitrator for dispute concerning development of Hukumchand Mill Area
A dispute had arisen between the M.P. Housing and Infrastructure Development Board and the applicant regarding non-performance of their consulting services in a given timeline as per their agreement.
A party alone cannot decide to appoint an Arbitrator of their choice when 2nd party has not given consent: MP High Court
“Proviso to Section 12(5) gives a discretion to the parties to waive the applicability of the appointment of an Arbitrator by one party, but the word ‘may’ has been used”.
Gauhati High Court appoints Retd. District and Sessions Judge, Nagaland as an arbitrator in lottery printing dispute with Nagaland Government
The petitioner submitted that it filed an arbitration petition before Punjab and Haryana High Court, as part of the agreement was executed at Chandigarh. However, the Punjab and Haryana High Court was unable to decide the petition due to territorial bar. Hence, the present petition is filed.
Delhi HC: Invoking S.18 of MSMED Act for dispute resolution not mandatory, but once invoked, party cannot seek appointment of arbitrator
“Once the mechanism under MSME Act is triggered by any party, the procedure has to be taken to its logical end. However, once there is no trigger by invoking the jurisdiction of the Council, party cannot be precluded from resorting to any other mechanism for resolution of its disputes.”
‘Limitation period for invoking Arbitration begins from date of notice’; Rajasthan High Court appoints Sole Arbitrator in BSNL Contract Dispute
“The agreement executed between the parties is not disputed. This fact is not in dispute that the contract of the petitioner has been terminated and the money has been forfeited by the respondents in the month of October, 2019.”
Delhi HC appoints Justice Arvind Sangwan as sole arbitrator in a petition filed by Dixon Technologies
The arbitration would take place under the aegis of the Delhi International Arbitration Centre and would abide by its rules and regulations.
SC clarifies scope of judicial scrutiny under Section 11 of Arbitration Act: Sets aside Bombay HC ruling on appointment of arbitrator
Supreme Court clarified that the limited jurisdiction of the referral Courts under Section 11 must not be misused by parties in order to force other parties to the arbitration agreement to participate in a time-consuming and costly arbitration process.
Supreme Court Crystallises the Law on Independence and Impartiality of Arbitrators in Indian Law: An Analysis of the Verdict in CORE II
by Vasanth Rajasekaran* and Harshvardhan Korada**
‘Existence of arbitration agreement in license agreement and share subscription agreement not in dispute’, Supreme Court refers matter to DIAC for appointment of sole arbitrator
“We have not expressed any opinion on the merits of the claim of either party including regarding the arbitrability of the dispute. All contentions and pleas are kept open for the parties to raise before the arbitral tribunal.”
Unilateral appointment clauses in public-private contracts violative of Article 14 of Constitution; Arbitrator’s selection from PSUs panel not a mandate: SC
The Arbitration and Conciliation Act, 1996 does not prohibit Public Sector Undertakings from empanelling potential arbitrators, however, an arbitration clause cannot mandate the other party to select its arbitrator from the panel curated by PSUs.
Application for extension of time for passing arbitral award under Section 29A of Arbitration Act is maintainable even after 18-month deadline for making of award: SC
“Section 29A intends to ensure the timely completion of arbitral proceedings while allowing Courts the flexibility to grant extensions when warranted. Prescribing a limitation period, unless clearly stated in words or necessary, should not be accepted. Bar by limitation has penal and fatal consequences.”
Top cases on Arbitration Law from July to August 2024
A quick recap of the latest rulings on Arbitration Law by the High Courts.
Confidentiality in Arbitration: Legal and Practical Challenges in India
by Vasanth Rajasekaran* and Harshvardhan Korada**