Existence Of Contingent Contract U/S 31 Of Contract Act Is A Dispute To Be Referred To Arbitration: Telangana High Court
2 years, 7 months ago

Existence Of Contingent Contract U/S 31 Of Contract Act Is A Dispute To Be Referred To Arbitration: Telangana High Court

Live Law  

Recently, the Telangana High Court observed that existence of a "Contingent Contract" cannot be decided in the limited jurisdiction of Courts under Section 11 of Arbitration Act. Justice K. Lakshman, placing reliance on Supreme Court decision in Vidya Drolia v. Durga Trading Corporation observed that the scope of interference by the Courts under Section 11 of Arbitration Act is extremely limited: "The court should refer a matter if the validity of the arbitration agreement cannot be determined on a prima facie basis, as laid down above i.e. Findings of the Court Justice K. Lakshman noted that the respondent relied on existence of Contingent Contract within the definition of Section 31 of Contract Act, 1872. Since the parties had admitted that there existed an arbitration clause to determine the disputes, the Court exercising its limited jurisdiction under Section 11 referred the dispute to arbitration as the question whether the agreement was acted upon or not and whether the sanction was rejected because of the Respondents was to be decided by an arbitrator.

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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, 5 days 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

Live Law  

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 …

Land Acquisition Act | Right To Receive Compensation Crystalizes Only After Claims Over Dispute On Apportionment Is Decided: Telangana HC
3 weeks, 4 days ago

Land Acquisition Act | Right To Receive Compensation Crystalizes Only After Claims Over Dispute On Apportionment Is Decided: Telangana HC

Live Law  

The Telangana High Court has s that the entitlement to receive compensation under the Land Acquisition Act would crystallize only after the competent court–to whom a reference is made over a dispute as to the apportionment of compensation–decides the rival claims and rules in the claimant's favour. The high court referred to the court's decision in a 2024 writ petition …

[A&C Act] Non-Payment Of Part Of Mutually Agreed Amount After Settlement Of Dispute Not An Arbitrable Issue Under Arbitration Agreement: Andhra Pradesh HC
1 month, 2 weeks ago

[A&C Act] Non-Payment Of Part Of Mutually Agreed Amount After Settlement Of Dispute Not An Arbitrable Issue Under Arbitration Agreement: Andhra Pradesh HC

Live Law  

The Andhra Pradesh High Court has upheld the dismissal of an application filed under section 8 of the Arbitration and Conciliation Act, holding that once an amount has been mutually decided by the parties, the dispute itself is resolved and no arbitrable issue remains for consideration. A Division Bench of Justice Ravi Nath Tilhari and Justice V. Srinivas pointed out …

Telangana High Court Reiterates Limited Scope For Interference With Arbitral Awards U/S 34 Of Arbitration & Conciliation Act, 1996
4 months, 2 weeks ago

Telangana High Court Reiterates Limited Scope For Interference With Arbitral Awards U/S 34 Of Arbitration & Conciliation Act, 1996

Live Law  

The Telangana High Court bench comprising Chief Justice Alok Aradhe and Justice J. Sreenivas Rao has held that an interim order passed by an arbitral tribunal under section 17 of the Arbitration and Conciliation Act, 1996, restraining the encashment of a bank guarantee does not warrant interference under section 34 of the Act. The validity of the award was also …

Court Rules on Jurisdiction of Arbitral Tribunal: Determining Whether Dispute is Arbitrable under Section 16 of the Arbitration and Conciliation Act, 1996
4 months, 2 weeks ago

Court Rules on Jurisdiction of Arbitral Tribunal: Determining Whether Dispute is Arbitrable under Section 16 of the Arbitration and Conciliation Act, 1996

Live Law  

The Telangana High Court Bench of Chief Justice Alok Aradhe affirmed that the Arbitral Tribunal may rule on its own jurisdiction, including any objections with respect to the existence or validity of the arbitration agreement. However, the issue of limitation is a jurisdictional issue, which would be required to be decided by the arbitrator under Section 16, and not the …

Telangana HC Dismisses Property Purchaser's Appeal, Says Act Done In 'Wilful Disobedience' Of Injunction Order Is Liable To Be Reversed
5 months, 2 weeks ago

Telangana HC Dismisses Property Purchaser's Appeal, Says Act Done In 'Wilful Disobedience' Of Injunction Order Is Liable To Be Reversed

Live Law  

While hearing a matter concerning a property dispute, the Telangana High Court reiterated that an act which is done in violation of an injunction order is invalid and should be undone by the court putting back the parties in the same position as they were before such an order was passed. In reiterating so, the High Court dismissed an appeal …

Arbitration Cases Monthly Digest: July 2024
7 months, 1 week ago

Arbitration Cases Monthly Digest: July 2024

Live Law  

Supreme Court Avoid Bulky Pleadings & Lengthy Submissions In Arbitration Appeals : Supreme Court To Advocates Case Title: Bombay Slum Redevelopment Corporation Private Limited Versus Samir Narain Bhojwani Citation : 2024 LiveLaw 445 Expressing displeasure over the filing of bulky and lengthy submissions in the arbitral proceedings, the Supreme Court on Monday called upon the Bar to urge only the …

Arbitration Weekly Round-up: 1st April to 7th April 2024
11 months, 1 week ago

Arbitration Weekly Round-up: 1st April to 7th April 2024

Live Law  

High Courts Allahabad High Court Allahabad High Court Directs Inquiry Against Officers Who Failed To File Arbitration Appeals Within Prescribed Limitation Case Title: Executive Engineer Drainage Division v. Ms Ayush Construction And Another The Allahabad High Court has directed Principal Secretary/Additional Chief Secretary, Irrigation, Uttar Pradesh to conduct an inquiry against officers who were responsible for filing appeals under Section …

Unsuccessful Conciliation Proceedings Can't Be Converted Into Arbitration Without Prior Declaration Of Termination: Telangana High Court
1 year, 1 month ago

Unsuccessful Conciliation Proceedings Can't Be Converted Into Arbitration Without Prior Declaration Of Termination: Telangana High Court

Live Law  

The Telangana High Court single bench of Justice T. Madhavi Devi held that if the facilitation conciliation proceedings are unsuccessful and terminated without any settlement, the council cannot be automatically converted into arbitral proceedings without a prior declaration of failure and termination of the conciliation process. Highlighting the distinctions, the High Court noted that arbitration proceedings, governed by Sections 18 …

Section 8 Of A& C Act Is Compiled On Filing Application Under O. 7 Rule 11, Informing About Arbitration Clause: Telangana High Court
1 year, 1 month ago

Section 8 Of A& C Act Is Compiled On Filing Application Under O. 7 Rule 11, Informing About Arbitration Clause: Telangana High Court

Live Law  

The Telangana High Court single bench of Justice Alok Aradhe held that the requirement under Section 8 of the Arbitration and Conciliation Act, 1996 to inform the court regarding the existence of an arbitration clause is fulfilled when a party files an application for rejection of plaint under Order VII Rule 11 of the Code of Civil Procedure, 1908 in …

Mere Negotiations Do Not Delay Cause Of Action For Purpose Of Limitation, Telangana High Court Dismisses Application For Appointment Of Arbitrator
1 year, 1 month ago

Mere Negotiations Do Not Delay Cause Of Action For Purpose Of Limitation, Telangana High Court Dismisses Application For Appointment Of Arbitrator

Live Law  

The Telangana High Court single bench comprising Justice CV Bhaskar Reddy held that the mere exchange of communications or settlement discussions between the parties does not extend the period of limitation for issuing a notice of arbitration. The Applicant approached the Telangana High Court and filed application under Section 11 & of the Arbitration and Conciliation Act, 1996 read with …

Arbitrator Taking A Different View Is Not A Ground To Set Aside Award: Telangana High Court
1 year, 1 month ago

Arbitrator Taking A Different View Is Not A Ground To Set Aside Award: Telangana High Court

Live Law  

The Telangana High Court bench comprising Justice M.G. Thereafter, the Petitioner filed an appeal before the Telangana High Court arguing that both the ADJ and the Sole Arbitrator failed to consider their claim properly and requested the full amount claimed. Regarding the scope of interfering with the arbitration award, the High Court noted that there is limited scope for interfering …

Mere Negotiations Will Not Postpone The Cause Of Action For Appointment Of An Arbitrator: Telangana High Court
1 year, 2 months ago

Mere Negotiations Will Not Postpone The Cause Of Action For Appointment Of An Arbitrator: Telangana High Court

Live Law  

The High Court of Telangana has held that mere negotiations between the parties related to the dispute would not delay the cause of action for the purpose of limitation for the appointment of the arbitrator. Moreover, the invocation of the arbitration is also time barred as the application as been moved after the expiry of the 3 years time period …

Indian Contract Act | Unless Contingency Is Fulfilled, Contingent Agreement To Sale Cannot Be Enforced: Patna High Court
1 year, 2 months ago

Indian Contract Act | Unless Contingency Is Fulfilled, Contingent Agreement To Sale Cannot Be Enforced: Patna High Court

Live Law  

While rejecting an appeal that sought specific performance of a sale agreement, the Patna High Court has observed that a sale agreement with a contingency clause cannot be enforced unless that contingency is fulfilled. The plaintiff-appellants filed the Title Suit for a decree of specific performance of contract on the basis of an agreement for sale executed by 3 defendants …

Once it terminates proceedings, arbitral tribunal cannot pass orders: High Court
1 year, 10 months ago

Once it terminates proceedings, arbitral tribunal cannot pass orders: High Court

Deccan Chronicle  

Hyderabad: A two-judge bench of the Telangana High Court declared that once an arbitral tribunal terminates proceedings it cannot subsequently pass any orders ‘on such termination and the arbitral tribunal is rendered functus officio’ and has no jurisdiction to continue arbitral proceedings. After detailed hearing of the matter, the bench speaking through Justice Naveen Rao stated that the tribunal erred …

Clause Captioned As “Arbitration”, Doesn’t Conclusively Imply Mandatory Nature Of Arbitration: Bombay High Court
2 years ago

Clause Captioned As “Arbitration”, Doesn’t Conclusively Imply Mandatory Nature Of Arbitration: Bombay High Court

Live Law  

The Bombay High Court has ruled that the use of the word ‘can’ in the relevant clause has the effect of qualifying Arbitration as a mode of settlement, and the mere fact that a particular clause is captioned as “Arbitration”, does not conclusively imply the mandatory nature of arbitration when the option is left to the parties to settle their …

Substitution Of Arbitrator Based On Allegation Of Collusion Can't Be Done Under Section 11 of A& C Act: Telangana High Court
2 years, 6 months ago

Substitution Of Arbitrator Based On Allegation Of Collusion Can't Be Done Under Section 11 of A& C Act: Telangana High Court

Live Law  

The Telangana High Court has ruled that in an application filed under Section 11 of the Arbitration and Conciliation Act, 1996, the Court cannot, on the ground of collusion, refuse to appoint the arbitrator as specified in the arbitration clause and appoint a substitute arbitrator. The applicant filed an application under Section 11 of the A&C Act before the Telangana …

Existence Of Arbitration Agreement Can Be Presumed If No Denial Is Made In The Reply: Karnataka High Court
2 years, 6 months ago

Existence Of Arbitration Agreement Can Be Presumed If No Denial Is Made In The Reply: Karnataka High Court

Live Law  

The Karnataka High Court has held that the words "statements of claim and defence" under Section 7 of the A&C Act are to be given wider interpretation and reply to a notice of arbitration falls within the section. The respondent vide its reply dated 15.05.2020 denied its liability to pay any due amount to the petitioner, however, it did not …

Arbitration Cases Weekly Round-Up: July 31 To August 6 , 2022
2 years, 7 months ago

Arbitration Cases Weekly Round-Up: July 31 To August 6 , 2022

Live Law  

Supreme Court: Mere Use Of Words "Arbitration" Or "Arbitrator" In A Clause Won't Make It Arbitration Agreement: Supreme Court Case Title: Mahanadi Coalfields Ltd. versus IVRCL AMR Joint Venture Citation: 2022 LiveLaw 657 The Supreme Court observed that an arbitration agreement should disclose a determination and obligation on behalf of the parties to refer the disputes to arbitration. Arbitration Clause …

Courts Can Exercise Judicial Review In Contractual Matters Only If Malafide/ Arbitrariness Is Shown: Telangana High Court
2 years, 8 months ago

Courts Can Exercise Judicial Review In Contractual Matters Only If Malafide/ Arbitrariness Is Shown: Telangana High Court

Live Law  

The Telangana High Court recently observed that judicial review by the Court in contractual matters is very limited and unless malafides and arbitrariness was shown, the Court could not interfere with the administrative action. Considering that the distributors and general transporters are not standing on the same footing and allowing the petitioner to participate in the public tender basing on …

Impossible For The Party To Fulfil Its Obligations Under The Contract; Parties Cannot Be Referred To Arbitration: Telangana High Court
2 years, 8 months ago

Impossible For The Party To Fulfil Its Obligations Under The Contract; Parties Cannot Be Referred To Arbitration: Telangana High Court

Live Law  

The Telangana High Court has ruled since it was impossible for a party to fulfil its obligations under an agreement, in view of the doctrine of frustration, the parties cannot be referred to arbitration, despite the presence of an arbitration clause. The Single Bench of Chief Justice Ujjal Bhuyan observed that though the lease deed between the parties contained an …

No Claim Certificate By Employee To Employer Under Compulsion Or Not, Issue Is Arbitrable: Telangana High Court
2 years, 9 months ago

No Claim Certificate By Employee To Employer Under Compulsion Or Not, Issue Is Arbitrable: Telangana High Court

Live Law  

The Telangana High Court has ruled that the issue whether a no claim certificate furnished by a party to its employer was under compulsion or duress, or whether the said no claim certificate is valid, which would discharge the contract and debar the party from raising further claims, is an arbitrable dispute. The respondent M/s RITES Ltd. submitted before the …

Arbitration Clause In An Insufficiently Stamped Agreement Cannot Be Acted Upon By Court: SC [Read Judgment]
5 years, 1 month ago

Arbitration Clause In An Insufficiently Stamped Agreement Cannot Be Acted Upon By Court: SC [Read Judgment]

Live Law  

The Supreme Court has observed that an arbitration clause in an agreement which is required to be duly stamped, was not sufficiently stamped, cannot be acted upon by the Court. In this case, one of the parties to the agreement filed a petition under Section 11 of the Arbitration Act before the High Court of Karnataka.The other party, entered appearance …

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