Exclusive Jurisdiction Clause Prevails Over Seat Of Arbitration Clause If It Expressly Covers Proceedings Relating To Arbitration: Delhi HC

The Delhi High Court bench of Justice C. Hari Shankar has observed that generally if an agreement contains both exclusive jurisdiction clause and seat of arbitration clause, then judicial proceedings relating to arbitration would lie only before the court having territorial jurisdiction over the arbitral seat/venue. However, as in the instant case, if the exclusive jurisdiction clause...

International Commercial Arbitration | How To Determine Law Governing Arbitration Agreement? Supreme Court Discusses Tests

In a significant judgment relating to International Commercial Arbitration, the Supreme Court today (March 18) ruled that in the absence of an express law governing the arbitration agreement, the applicable law should be determined based on the parties' intentions, with a strong presumption in favor of the law governing the main contract (lex contractus). The bench comprising Chief...

Setting Aside Of Arbitral Award Leaves It Open To Parties To Choose To Arbitrate Again: Bombay High Court

The Bombay High Court Bench of Justice Somsekhar Sundaresan has observed that once an arbitral award has been set aside by the court in the exercise of its powers under Sections 34 and 37 of the Arbitration and Conciliation Act, 1996, the parties would be restored to the original position and a fresh arbitration in such circumstances would not amount to the proverbial “second bite at...

Tendering Authority Is Best Judge To Decide T&C Of Tender, Judicial Interference Permissible Only When Terms Are Arbitrary: Calcutta HC

The Calcutta High Court bench of Chief Justice T.S. Sivagnanam and Justice Chaitali Chatterjee (Das) has held that tender issuing authority is the best judge to decide terms and conditions of a tender. Such terms and conditions cannot be tinkered with by the Judicial Authority unless they are found to be arbitrary or whimsical. Brief Facts: A writ petition was filed by...

Arbitral Tribunal Is Sole Judge Of Evidence, Court Not Required To Re-Evaluate Evidence U/S 34 Of Arbitration Act: Delhi High Court

The Delhi High Court bench of Justice Vibhu Bakhru and Justice Tejas Karia held that the arbitrator is the ultimate master of the quantity and quality of evidence to be relied upon when he delivers his arbitral award. An award would not be held invalid merely because the award is based on little evidence or on evidence which does not meet the quality of a trained legal mind. Also,...

Application U/S 34 Of Arbitration Act Not Maintainable If Not Filed With Copy Of Arbitral Award: Delhi High Court

The Delhi High Court division bench of Justice Yashwant Varma and Justice Harish Vaidyanathan has held that an application under Section 34 of the Arbitration and Conciliation Act, 1996 is non-maintainable if it is not accompanied by a copy of the impugned award. The court held that the filing of the award is not a mere procedural requirement but a mandatory prerequisite for...

Order Passed U/S 23(3) Of Arbitration Act Is Procedural & Not An Interim Award, Cannot Be Challenged U/S 34 Of Arbitration Act: Delhi High Court

The Delhi High Court Bench of Justice Subramonium Prasad has held that an order dismissing an application under Section 23(3) of the Arbitration & Conciliation Act is only a procedural order and does not qualify as an 'interim award' amenable to challenge under Section 34 of the Arbitration & Conciliation Act Brief Facts of the case: The petitioner issued a tender...

Filing Written Statement Does Not Waive Right To Arbitration If Preliminary Objection Is Raised At Outset: Jammu & Kashmir High Court

The Jammu and Kashmir High Court bench of Justice Rajnesh Oswal held that mere filing of the written statement in a suit does not constitute a waiver of right to arbitration if the party has raised a preliminary objection in respect of the arbitration clause at the outset. Brief Facts: The matter pertained to a judgment issued by the Principal District Judge, Jammu. The trial...

Writ Petition Is Not Maintainable When Effective And Efficacious Remedy In Form Of Arbitration Is Available: Calcutta High Court

The Calcutta High Court Bench of Chief Justice T.S. Sivagnanam and Justice Hiranmay Bhattacharyya held that it cannot entertain a writ petition if an effective and efficacious remedy, in the form of arbitration, is available. It said that the High Court would normally exercise its jurisdiction in 3 contingencies namely (i) when the writ petition was filed for enforcement of any...

Party Entering Settlement Agreement, Agreeing To Consent Award Cannot Later Object To Its Enforcement On Grounds Of Lack Of Knowledge: Delhi HC

The Delhi High Court bench of Justice Anish Dayal has rejected an objection raised by the Award Debtor against the enforcement of an Award on the ground that it was contrary to public policy since it was not informed by the Award Holder about a previous settlement with the Judgment Debtor's subsidiary. The Court deprecated the stance taken by the Award Debtor, as in view of the facts of...

Serious Allegations Of Fraud Constituting Criminal Offense Are Non-Arbitrable: Delhi High Court

The Delhi High Court bench of Justice Subramonium Prasad held that the allegations of fraud which are extremely serious and potentially constitute a criminal offense are non-arbitrable. The court noted that the plea of fraud is of such a nature that it impacts the entire contract, including the arbitration agreement. Consequently, the court held that such a dispute is not arbitrable...

Withdrawal Of MSMED Council Application Does Not Preclude Arbitration U/S 11, Even Without Council's Response: Delhi High Court

The Delhi High Court bench of Justice Subramonium Prasad held that withdrawal of an application before the MSMED Council does not bar a party from seeking the appointment of an arbitrator under Section 11 of the Arbitration and Conciliation Act, 1996, even in the absence of any corresponding response from the MSMED Council. Brief Facts: Respondent No. 2 and 3 approached...

Arbitration Clause In Invoices Can Be Binding On Parties When They Acted Upon The Invoices And No Objections Were Raised: Bombay HC

The Bombay High Court bench of Justice Somasekhar Sundaresan has observed that where the correspondence between the parties included invoices which contained an arbitration clause and the parties acted upon those invoices without protesting, then it could be deemed that the party had accepted the arbitration clause. Background Facts and Issue The Respondent had availed of...

Loss Of Profit In Works Contracts Can Be Awarded Upon Illegal Termination, Even In Absence Of Direct Proof: Calcutta High Court

The Calcutta High Court division bench of Justice Soumen Sen and Justice Biswaroop Chowdhury has held that once a contractor establishes an illegal and unjustified termination of the contract by the employer, there is no need to prove the actual loss suffered. A reasonable expectation of profit is implicit in a works contract, and compensation must be awarded accordingly. The...

Veracity Of Allegations Against Settlement Agreement Cannot Be Looked Into By Court In Application U/S 11 Of Arbitration Act: Delhi High Court

The Delhi High Court bench of Justice Manoj Kumar Ohri has reiterated that the scope of inquiry under Section 11 of the Arbitration and Conciliation Act, 1996, is limited to examining the prima facie existence of the arbitration agreement. It was further observed that if either party contests a prior settlement agreement, then such allegations cannot be looked into by the Court under...

Anti-Arbitration Suit Giving Short-Shrift To Sec 16 A&C Act Is Hit By Order 7 Rule 11(d) Of CPC: Telangana High Court Reiterates

The Telangana High Court has reiterated and clarified that suits initiated before Civil Courts to curb arbitration proceedings ignore section 16 of the Arbitration and Conciliation Act,1996, and deserve to be rejected under Order 7, Rule 11(d) as being barred by statute.The order was passed in a commercial court appeal by a Division Bench of Justice Moushumi Bhattacharya and...

Threshold To Prove Fraud & Corruption In Arbitral Award Is Much Higher Than Merely Criticising Findings Of Arbitrator: Calcutta High Court

The Calcutta High Court bench of Justice Shampa Sarkar has observed that in order to prove that the making of the award was vitiated by fraud, the petitioner would have to demonstrate that the unethical behaviour of the arbitrator surpassed all moral standards. The Court reiterated that an honest mistake or incorrect appreciation of the terms of the contract cannot be either fraud...

Arbitration Agreement Valid Without Specifying 'Applicable Law', 'Seat' Or 'Venue' If Intent To Refer Dispute To Private Tribunal Is Clear: Calcutta HC

The Calcutta High Court bench of Justice Shampa Sarkar has held that for an arbitration agreement to be binding, neither the applicable law nor the seat or venue needs to be mentioned. As long as the clause indicates that the parties had agreed and there was a meeting of minds to refer any dispute to a private tribunal for adjudication of the disputes, the clause would constitute...

Arbitral Awards Can Be Granted On The Basis Of Evidentiary Admissions: Delhi High Court

The Delhi High Court bench of Justice Prateek Jalan has observed that the power to pass an award on admissions is wide, and evidentiary admissions (admissions contained outside pleadings) can also form the basis of an arbitral award. The Court observed that while it is true that admissions in pleadings are placed on a higher footing to the extent that they may require nothing more for...

Arbitration Clause Cannot Be Invoked Again Over Matters Which Have Already Been Adjudicated: Karnataka High Court

The Karnataka High Court has said the Arbitration clause in the lease agreement cannot be invoked for matters that have already been adjudicated upon and concluded by both the Arbitral Tribunal and the competent courts.Justice Sachin Shankar Magadum held thus while dismissing a petition filed by Starlog Enterprises Limited, who had approached the court praying for the appointment of a...