India’s Arbitration/Alternate Dispute Redressal Mechanism – Is It A Trap Or A Genuine Redressal Mechanism ?
6 years, 3 months ago

India’s Arbitration/Alternate Dispute Redressal Mechanism – Is It A Trap Or A Genuine Redressal Mechanism ?

Live Law  

Undoubtedly, the Indian Arbitration Act of 1940 had failed. Pointing at this gaping lacunae and suggesting immediate rectification, Justice Hegde pithily wrote - “However, we do notice that this automatic suspension of the execution of the award, the moment an application challenging the said award is filed under Section 34 of the Act leaving no discretion in the court to put the parties on terms, in our opinion, defeats the very objective of the alternate dispute resolution system to which arbitration belongs”. Second, for a forensic appreciation, let us examine a few instances of judicial intervention in the recent past – in ONGC vs Saw Pipes, the arbitral award was passed on 02.05.1999, while the SLP was finally decided by judgment dated 17.04.2003, consuming a period of more than 4-years; in Associate Builders vs DDA, the arbitral award was passed on 23.05.2005, the objection under Section 34 was dismissed on 03.04.2006, the Appeal under Section 37 was decided on 08.02.2012 and the SLP finally decided by judgment dated 25.11.2014, consuming a period of more than 9-years; in National Highways Authority of India vs ITD Cementation India Limited 14 SCC 21, the arbitral award was passed on 12.05.2006, the objection under Section 34 were dismissed on 14.05.2007, the Appeal under Section 37 was decided on 30.11.2007 and the SLP was finally decided by judgment dated 24.04.2015, consuming a period of more than 9-years; and in Centrotrade Minerals and Metal Incorporated vs Hindustan Copper Limited, the Arbitrator / Tribunal at London passed their foreign award on 29.09.2001. Consequently, all those seeking to repose faith and confidence on India’s arbitration mechanism, are impelled to ask, if arbitration is – “a binding voluntary alternative dispute resolution process….”*; whose findings should normally “be accepted without demur”*; where the Court are expected to discharge a mere “supervisory role”*; “a speedy, expeditious and cost-effective method of dispute reconciliation”*; aimed at “avoidance of vexation, expense and delay……”*, would it be right and thus lawful to place an award so procured through this system of triple hurdles? As we foray further and as the law suggests, that - the Act is an exhaustive self-contained code, that arbitration proceedings must necessarily be fair, speedy and inexpensive without unnecessary delay or expense, where the “legislative intent underlying the 1996 Act is to minimize the supervisory role of Court in the arbitral process….”, can it even be vaguely countenanced, that an arbitral award be subjected to such three-tier challenge and more so, permitted and prescribed by our lawmakers.

India Justice Arbitration Dispute Party Mechanism Act Limited Award Desai Ongc Slp Section 37 Scc Section 34 Hindustan Copper Limited  award  arbitrationalternate  justice  indias  trap  mechanism  genuine  vs  dispute  courts  limited  34  arbitration  redressal  scc  act

History of this topic

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

Live Law  

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 …

India aims to be global arbitration hub. And cut costs for its biggest litigant.
5 months ago

India aims to be global arbitration hub. And cut costs for its biggest litigant.

Live Mint  

New Delhi: The Union law ministry has commissioned a study of the legal frameworks in top international commercial centers as part of its efforts to position India as a global arbitration hub. The ministry is looking to address challenges in India’s arbitration system and improve the execution of arbitral awards, or out-of-court settlements, two officials said, declining to be identified. …

'India Is Arbitration-Friendly' : Justice SK Kaul Says At International Legal Forum Of Asia-Pacific Region
1 year, 3 months ago

'India Is Arbitration-Friendly' : Justice SK Kaul Says At International Legal Forum Of Asia-Pacific Region

Live Law  

Justice Sanjay Kishan Kaul, judge of the Supreme Court, participated in the 12th International Legal Forum of the Asia-Pacific Region on Thursday. The topic of the forum was, "Balance of Protection of National Interests and Rights of Participants of International Economic Relations".In his address, Justice Kaul said that the judiciary should exercise restraint in interfering. In his address, Justice Kaul …

Arbitration, Invoked Without Authority, The Defect Can't Be Ratified With Fresh Board Resolution: Bombay High Court
2 years, 2 months ago

Arbitration, Invoked Without Authority, The Defect Can't Be Ratified With Fresh Board Resolution: Bombay High Court

Live Law  

The Bombay High Court has ruled that the issue whether the arbitration was invoked and the Statement of Claim was filed, by a person duly authorized by the claimant, goes to the root of the matter, with respect to which the arbitral tribunal may make a final arbitral award. Thus, the Court held that the order passed by the arbitral …

Arbitration Cases Weekly Round-Up: 23 To 29 October, 2022
2 years, 2 months ago

Arbitration Cases Weekly Round-Up: 23 To 29 October, 2022

Live Law  

Bombay High Court: Execution Of Agreement, In Bid Document As Condition Precedent; Failure To Execute, Not A Concluded Contract: Bombay High Court Case Title: Kalpataru Limited versus Middle Class Friends Co-operative Housing Society Limited The Bombay High Court has ruled that where reference to a future contract is made in the tender documents and in the Letter of Intent issued …

Arbitration Court Reckoner : April & May 2021
3 years, 6 months ago

Arbitration Court Reckoner : April & May 2021

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By way of the present column, an attempt is made to briefly review the salutary judgments pronounced by the Courts in the month of April & May 2021 under the Arbitration & Conciliation Act, 1996. Claim admitted in balance sheets liable to be secured in view of Respondent's poor financial health In Savita Jain Sole Proprietor Of M S Navkar …

Arbitration Court Reckoner : February 2021
3 years, 9 months ago

Arbitration Court Reckoner : February 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 February 2021 under the Arbitration & Conciliation Act, 1996. Section 9 Court required to mould relief to secure claim of applicant in arbitral proceedings where Respondent has no assets at all or its assets are fully …

Arbitration Court Reckoner : January 2021
3 years, 10 months 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, 5 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 …

Efficacy of Investment Treaty Arbitration: Justice Ravindra Bhat[Video And Full Text Of Speech]
4 years, 11 months ago

Efficacy of Investment Treaty Arbitration: Justice Ravindra Bhat[Video And Full Text Of Speech]

Live Law  

During the FICCI International Conference, Justice S. Ravindra Bhat spoke at length about the adverse effect of investor-state dispute settlement system on international trade agreements. He asserted that even though arbitration has become the "predominant means" of dispute resolution in investment treaties, the ISDS framework is extremely controversial and "threatens to jeopardise" several trade agreements. The practise of negotiating and …

Limited Scope Of Interference With An International Commercial Arbitration: Delhi HC [Read Judgment]
4 years, 11 months ago

Limited Scope Of Interference With An International Commercial Arbitration: Delhi HC [Read Judgment]

Live Law  

In a significant ruling while discussing the scope of judicial interference with awards of an international commercial arbitration, the Delhi High Court on Tuesday dismissed a German manufacturer's claim for damages against BHEL, India. "the scope of interference for International Commercial Arbitration, in India, subsequent to the amendment of Section 34 of the Act, has been narrowed down and even …

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