Sec 8 Arbitration Act - Court Can't Adjudicate Bifurcability Of Causes Of Action Or Presence Of Necessary Parties After 2015 Amendment: Calcutta HC
3 years, 1 month ago

Sec 8 Arbitration Act - Court Can't Adjudicate Bifurcability Of Causes Of Action Or Presence Of Necessary Parties After 2015 Amendment: Calcutta HC

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The Calcutta High Court on Friday had the opportunity to expound on the issue as to whether Courts should consider the dictum of the Supreme Court as laid down in Sukanya Holdings Ltd. v. Jayesh H. Pandya regarding non-permissibility of bifurcation of subject-matter or causes of action in a suit while adjudicating upon an application filed under section 8 of the Arbitration and. The Calcutta High Court on Friday had the opportunity to expound on the issue as to whether Courts should consider the dictum of the Supreme Court as laid down in Sukanya Holdings Ltd. v. Jayesh H. Pandya regarding non-permissibility of bifurcation of subject-matter or causes of action in a suit while adjudicating upon an application filed under section 8 of the Arbitration and Conciliation Act, 1996. Observations Parties must be referred to arbitration if a valid arbitration agreement exists in suits filed post-2015 amendment The Court noted that Section 8 of the Arbitration Act mandates a judicial authority before which an action is brought to refer a matter which is the subject matter of an arbitration agreement to arbitration. Furthermore, Justice Bhattacharya noted that the 2015 amendment to Section 8 was recommended by the Law Commission Report No.246 in the wake of the verdict of the Supreme Court in Sukanya Holdings Pvt Ltd 5 SCC 531 which held that arbitration reference was not maintainable against parties not covered by the arbitration agreement. In this regard, the Court clarified, "However, this recommendation did not find place in the final amendment which instead brought '…notwithstanding any judgment, decree or order of the Supreme Court or any Court…' in section 8" Pursuant to a reference to a host of Supreme Court judgments in this regard, Justice Bhattacharya ruled, "The only conclusion which emerges from the above interpretations and decisions is this: a Court must keep a hands-off approach – as opposed to a face-off with the arbitration process − and give a decisive push to the arbitral process once the court is satisfied, prima facie, that a valid arbitration agreement exists in a matter which is arbitrable.

Supreme Court Arbitration Parties Application Reference Agreement Bhattacharya Sec Cal Filed Section 8 Prima Facie Holdings Causes Section 8 Of Necessary Necessary Parties Sukanya Sukanya Holdings 2015 Amendment Justice Bhattacharya  necessary  holdings  causes  supreme  court  sec  presence  bifurcability  calcutta  reference  filed  sukanya  application  arbitration  agreement  parties  hc  cant

History of this topic

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
1 week, 1 day ago

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

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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 as being barred by statute. The appellant herein filed an injunction suit before the trial court seeking to stop the Arbitration proceeding initiated …

Specific Exclusion Clause In Agreement Renders Dispute Non-Arbitrable: Punjab & Haryana High Court
3 months ago

Specific Exclusion Clause In Agreement Renders Dispute Non-Arbitrable: Punjab & Haryana High Court

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The Punjab and Haryana High Court bench of Justice Jagmohan Bansal has held that when there is a specific exclusion clause in the agreement, the matter shall not be referred to Arbitration. It was submitted by the applicant that the court under section 11 cannot check whether the matter is non arbitrable or not as per Supreme Court judgment in …

[Arbitration Act] S.2(1)(f) Is Non-Derogable, Applicability Cannot Be Excluded Even By Mutual Consent Of Parties: Delhi High Court
3 months, 1 week ago

[Arbitration Act] S.2(1)(f) Is Non-Derogable, Applicability Cannot Be Excluded Even By Mutual Consent Of Parties: Delhi High Court

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The Delhi High Court bench of Justice Neena Bansal Krishna has held that section 2 of the Arbitration Act which defined the International Commercial Arbitration is a non derogable provision and its applicability cannot be excluded even by mutual consent of the parties. However, certain Sections of the Act, like S.2 which is the definition section, form the basic structure …

Referral Court Has Limited Role U/S 11 Of Arbitration Act To Verify Existence Of Arbitration Agreement: Rajasthan High Court
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4 months ago

Referral Court Has Limited Role U/S 11 Of Arbitration Act To Verify Existence Of Arbitration Agreement: Rajasthan High Court

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The Rajasthan High Court bench of Justice Sudesh Bansal affirmed that the scope of arbitration application, in view of Section 11 of the Arbitration Act, 1996 is confined and limited to the extent of examining the existence of arbitration agreement between the parties for resolution of dispute. Brief Facts Applicant has filed instant arbitration application under Section 11 of the …

Court U/S 45 Of Arbitration Act Must Refer Parties To Arbitration Unless Agreement Is Void Or Inoperative: Delhi High Court
4 months ago

Court U/S 45 Of Arbitration Act Must Refer Parties To Arbitration Unless Agreement Is Void Or Inoperative: Delhi High Court

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The Delhi High Court bench of Justice Dinesh Kumar Sharma affirmed that Section 45 of the Arbitration Act casts a statutory mandate on Courts to refer parties to an arbitration agreement to arbitration. The only limited exception carved in Section 45 is if the Court is of the prima facie opinion that the arbitration agreement is null and void; or …

Arbitration Weekly Round-Up: 4th November To 10th November 2024
4 months, 1 week ago

Arbitration Weekly Round-Up: 4th November To 10th November 2024

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Supreme Court Government Entity Can't Be Given Differential Treatment While Staying Operation Of Arbitral Award : Supreme Court Case Title: International Seaport Dredging Pvt Ltd Versus Kamarajar Port Limited, Case Number- Civil Appeal No 12097 of 2024 Recently, the Supreme Court disapproved of a High Court's decision to exempt a government entity from depositing other amounts in addition to the …

Chief Justice Or Their Designate Cannot Adjudicate Merits Of Dispute Under Section 11 Of Arbitration Act: Calcutta High Court
8 months, 2 weeks ago

Chief Justice Or Their Designate Cannot Adjudicate Merits Of Dispute Under Section 11 Of Arbitration Act: Calcutta High Court

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The Calcutta High Court bench of Justice Sabyasachi Bhattacharyya has held that it is completely beyond the domain of the Chief Justice and/or his designate, sitting in jurisdiction under Section 11 of the Arbitration and Conciliation Act, 1996, to adjudicate even prima facie on the merits of an arguable issue involved in the matter, which would fall categorically within the …

No Provision Under Arbitration Act To Spilt Parties Or Refer Part Of Subject Matter To Arbitration, Delhi High Court Dismisses S. 8 Petition
11 months, 2 weeks ago

No Provision Under Arbitration Act To Spilt Parties Or Refer Part Of Subject Matter To Arbitration, Delhi High Court Dismisses S. 8 Petition

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The Delhi High Court single bench of Justice Jasmeet Singh held that under the Arbitration and Conciliation Act, 1996 there is no provision for splitting of parties and referring part of the subject matter to arbitration. It held that where a suit encompasses matters outside the arbitration agreement and involves parties not party to the said agreement, Section 8 of …

Prima Facie No Arbitration Agreement Between Parties, Delhi High Court Dismisses Section 11(5) A&C Petition
1 year ago

Prima Facie No Arbitration Agreement Between Parties, Delhi High Court Dismisses Section 11(5) A&C Petition

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The Delhi High Court single bench of Justice Dinesh Kumar Sharma dismissed a petition filed under Section 11 of the Arbitration and Conciliation Act, 1996, noting that prima facie there was no arbitration agreement between Petitioner and Respondent. The High Court noted that Section 8, as amended in 2015, mandates the referral of parties to arbitration by a judicial authority …

Claims Related To Company Are Arbitrable Even Though It Is Non-Signatory To Arbitration Agreement, Delhi High Court Reinforces GOC Doctrine
1 year, 1 month ago

Claims Related To Company Are Arbitrable Even Though It Is Non-Signatory To Arbitration Agreement, Delhi High Court Reinforces GOC Doctrine

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The Delhi High Court bench comprising Justice Pratibha M. Singh held that the disagreements related to the partners' business activities, whether conducted through the firm or the company, fall within the scope of arbitrable matters. Ltd. and held that common business ventures of the partners, whether conducted through the firm or the Company, fell within the purview of the arbitration …

Arbitration Cases Weekly Round-Up: 14 To 20 May, 2023
1 year, 9 months ago

Arbitration Cases Weekly Round-Up: 14 To 20 May, 2023

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Supreme Court: Referral Court Has Duty To Conclusively Decide Issue Of ‘Existence & Validity Of Arbitration Agreement’ Raised At Pre-Referral Stage: Supreme Court Case Title: Magic Eye Developers Pvt. High Courts: Calcutta High Court: Arbitration: Calcutta High Court Allows S. 11 Application Being Consolidated Claim Under Different Purchase Orders Linked To A Single Main Contract Case Title: Godrej & Boyce …

Limited Scrutiny of Court Under Section 11 Of Arbitration Act Through The “Eye Of The Needle”, Is Necessary And Compelling: Supreme Court
1 year, 11 months ago

Limited Scrutiny of Court Under Section 11 Of Arbitration Act Through The “Eye Of The Needle”, Is Necessary And Compelling: Supreme Court

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The Supreme Court has ruled that the court while exercising jurisdiction under Section 11 of the Arbitration and Conciliation Act, 1996 is not expected to act mechanically, and that the limited scrutiny of the court at the pre-reference stage, through the “eye of the needle”, is necessary and compelling. While setting aside the High Court’s order, the Supreme Court observed …

Arbitration Cases Weekly Round-Up: 25 December To 31 December, 2022
2 years, 2 months ago

Arbitration Cases Weekly Round-Up: 25 December To 31 December, 2022

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Bombay High Court: Correspondence Between Parties Cannot Overrule Clear Intention Under Agreement Providing For Optional Arbitration: Bombay High Court Case Title: GTL Infrastructure Ltd. versus Vodafone India Ltd. Arbitration Can Be Invoked Against Party Deleted From Section 9 Application: Bombay High Court Case Title: Deccan Paper Mills Co. Ltd. versus M/s. Calcutta High Court: Disclosure Of Impartiality By Arbitrator Appointed …

Arbitration Cases Weekly Round-Up: 27 November To 3 December, 2022
2 years, 3 months ago

Arbitration Cases Weekly Round-Up: 27 November To 3 December, 2022

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Bombay High Court: Participation In Arbitral Proceedings, Does Not Disentitle Party To Challenge Award On Ground Of Unilateral Appointment Of Arbitrator: Bombay High Court Case Title: Naresh Kanayalal Rajwani & Ors. The Bombay High Court has ruled that merely because a party participated in the arbitration proceedings, it is not disentitled from challenging the arbitral award on the ground that …

Arbitration Cases Weekly Round-Up: 2 October To 8 October, 2022
2 years, 5 months ago

Arbitration Cases Weekly Round-Up: 2 October To 8 October, 2022

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Supreme Court: Arbitral Tribunal Must Give Reasons For Fixing Interest Rate; Award Holder Not Entitled To Interest For Delay Caused By It : Supreme Court Case Title: Executive Engineer versus Gokul Chandra Kanungo The Supreme Court recently held that a case where the award holder was responsible for delaying the proceedings which led to a huge lapse of time would …

Is Arbitration Clause In Unstamped Contract Valid? Supreme Court Constitution Bench Appoints Senior Advocate Gourab Banerji As Amicus
2 years, 5 months ago

Is Arbitration Clause In Unstamped Contract Valid? Supreme Court Constitution Bench Appoints Senior Advocate Gourab Banerji As Amicus

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A Constitution Bench of the Supreme Court, on Thursday, appointed Senior Advocate, Mr. Gourab Banerji as an Amicus Curiae to assist the Apex Court with the issue, whether the arbitration clause in a contract, which is required to be registered and stamped, but is not registered and stamped, is valid and enforceable. Justice Rastogi asked Mr. Banerji to name three …

Arbitration Cases Weekly Round-Up: 28 August To 3 September, 2022
2 years, 6 months ago

Arbitration Cases Weekly Round-Up: 28 August To 3 September, 2022

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Bombay High Court: Notice Under Section 21 Of A&C Act Issued; Court Not Barred From Exercising Jurisdiction Under Section 9: Bombay High Court Case Title: Relcon Infroprojects Ltd. & Anr. Refusal Of The Defendant To Amicably Settle The Dispute Satisfies The Requirement Of Pre-Litigation Mediation Under Commercial Courts Act: Delhi High Court Case Title: BOLT Technology OU versus Ujoy Technology …

Conduct Of The Parties Can't Substitute Arbitration Agreement: Calcutta High Court
2 years, 6 months ago

Conduct Of The Parties Can't Substitute Arbitration Agreement: Calcutta High Court

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The Calcutta High Court has held that the Court while exercising powers under Section 11 of the A&C Act is bound to examine the existence of the arbitration agreement, in absence of the agreement, it cannot refer the parties to arbitration merely because the respondent did not raise objections. The Court allowed the application by observing that the review applicant …

There Cannot Be Two Arbitration Proceedings With Respect To Same Contract/Transaction: Supreme Court
2 years, 7 months ago

There Cannot Be Two Arbitration Proceedings With Respect To Same Contract/Transaction: Supreme Court

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Observing that it is of the "firm opinion that there cannot be two arbitration proceedings with respect to the same contract/transaction", the Supreme Court stated that when a dispute has earlier been referred to arbitration and an award was passed on the claims made, then it is "rightful" to refuse to refer to arbitration- in exercise of Section 11 of …

On Procedural Aspects The Arbitration Act Must Yield To The Provisions Of The Commercial Courts Act: Orissa High Court
2 years, 11 months ago

On Procedural Aspects The Arbitration Act Must Yield To The Provisions Of The Commercial Courts Act: Orissa High Court

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The High Court of Orissa has observed that the Court for the purpose of deciding all the applications arising out of the arbitration agreement between the parties would be the Commercial Court as defined under the Commercial Courts Act which need not necessarily be the Principal Civil Court as provided under the Arbitration Act. As a corollary, the definition of …

Arbitration Court Reckoner : January 2021
4 years ago

Arbitration Court Reckoner : January 2021

Live Law  

By way of the present column, an attempt is made to briefly review the salutary judgments pronounced by the Courts in the month of January 2021 under the Arbitration & Conciliation Act, 1996. Merely because the Section 9 proceedings entails disputed facts does not lead to dismissal of a Section 9 application/petition In Luxe Passion Private Limited v Freedom Roost, …

Arbitration: Court Reckoner [June 2020]
4 years, 8 months ago

Arbitration: Court Reckoner [June 2020]

Live Law  

By way of the present column, an attempt is made to briefly review the salutary judgments pronounced by the Courts in the month of June 2020 under the Arbitration & Conciliation Act, 1996. In Rashmi Cement Ltd. v World Metals & Alloys & Anr., High Court of Delhi while dealing with a S. 9 Petition seeking certain interim measures in …

Sec 29A Arbitration Act :Power To Appoint Governs Power To Extend?
4 years, 9 months ago

Sec 29A Arbitration Act :Power To Appoint Governs Power To Extend?

Live Law  

The Arbitration & Conciliation Act, 2015 ushered in several sweeping changes in the Arbitration & Conciliation Act, 1996 with the laudable objective to make arbitration a preferred mode of dispute resolution of commercial disputes by seeking to make it efficacious, expeditious and cost effective. This question emerged as while the word used in S. 29A is 'Court', which would then …

How Not So Carefully Drafted One-Side Clause Can Backfire! Delhi HC Makes 2015 Amendments To Arbitration Act Applicable To Proceedings Initiated Under The 1996 Act
7 years, 11 months ago

How Not So Carefully Drafted One-Side Clause Can Backfire! Delhi HC Makes 2015 Amendments To Arbitration Act Applicable To Proceedings Initiated Under The 1996 Act

Live Law  

Yesterday on 11th April 2017, Justice S. Muralidhar in Ratna Infrastructure Projects Pvt. The Court interpreted the words “unless the parties otherwise agree” as used in the Section 26 of the Amendment Act in light of the standard agreement terms and held that the amendment act shall be applicable to the arbitral proceedings initiated before 23 October 2015, since the …

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