No Clause, No Deduction: Delhi HC Sets Aside Arbitral Award Allowing MGCC Shortfall Deduction as Patently Illegal
“There cannot be quarrel with the proposition that no clause can be read into the contract entered between the parties.”
“There cannot be quarrel with the proposition that no clause can be read into the contract entered between the parties.”
“Scheme of the Arbitration Act does not envision arbitration proceedings to cease with the death of a party. Section 35, Arbitration Act, extends the finality of an arbitral award not only to parties to the award, but also to ‘parties claiming under them’.”
“TCS should consider itself lucky that Inspira was successful in selling TCS’s user-specific Servers… Otherwise, TCS would have been liable to pay the entire price.”
The Court was dealing with a case where the arbitrators forming part of the Arbitral Tribunal are not only lay persons, but are also, the family elders, who consented to resolve the dispute between two brothers considering the overall interest of the family and its business.
“The scope of the intervention of the court in arbitral matters is virtually prohibited, if not absolutely barred.”
by Arush Khanna* and Akarsh Pandey**
Explore latest Cases reported in SCC’s High Court Cases (HCC) on arbitration covering critical legal issues such as arbitrability, seat v. venue, limitations in filing, validity of arbitral awards under Section 34, appointment of arbitrators, and public policy considerations.
The present controversy arose because the Arbitration and Conciliation Act, 1996, does not expressly empower courts to modify or vary an arbitral award, and Section 34 of the 1996 Act only confers upon courts the power to set aside an award.
by Aashish Gupta*, Puneeth Ganapathy** and Rishab Aggarwal***
Section 34 of the Arbitration and Conciliation Act, 1996 provides the legal framework for challenging an arbitral award before a court, while Section 37 governs appeals against specific orders passed under the Act, including those made under Section 34.
“It is now trite law that State agencies cannot hide behind the conventional excuse of bureaucratic delays and inefficiency in the State’s capacity, to condone delays.”
The Court had ordered the attachment of the Bikaner House to enforce payment since neither did the Nagar Palika of the State of Rajasthan comply with the court order to file an affidavit of assets nor did it pay the petitioner per the arbitral award.
The Nagar Palika of the State of Rajasthan failed to comply with court order to file an affidavit of assets despite being given multiple opportunities and failed to pay the petitioner in accordance with the arbitral award.
This report covers the Supreme Court’s Never Reported Judgment, on common intention, dating back to the year 1953.
The Court held that the benefit of reasonable doubt shall be given to the appellants and therefore partly allowed both the appeals, by acquitting them under Section 302 of IPC, and releasing the incarcerated appellants sentenced under Section 307 of IPC, for having served the ordered sentence period.
“It is well settled principle that unilateral appointment of Arbitrator is not permissible under the law”
“The award is not required to be set aside until and unless it is vitiated by “patent illegality” appearing on the face of the record with a caveat that the award should not be set aside merely on the ground of erroneous application of law or by appreciation of evidence.”
“The expression ‘public policy’ is of wider amplitude and hence, where award passed by arbitral tribunal is against the terms of contract or against law of land for time being in force, such an award is against public policy of India and is liable to be set aside under Section 34 of Arbitration and Conciliation Act, 1996.”
“In the context of Section 14 of Limitation Act, 1963, what needs to be seen is whether appellant has brought on the record any evidence to show that he is prosecuting the previously instituted suit with due diligence.”
Calcutta High Court held Arbitrator’s refusal to decide question of interest under the MSMED Act constitutes a “decision” and therefore, can be challenged under Section 34 of the Arbitration and Conciliation Act, 1996.