Threshold To Prove Fraud & Corruption In Arbitral Award Is Much Higher Than Merely Criticising Findings Of Arbitrator: Calcutta High Court
1 week, 3 days ago

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

Live Law  

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 Respondent relied on various documents before the court and the minutes of the meetings before the learned Arbitrator, in order to show that opportunities were given to the Petitioner to produce relevant documents, which had not been appended to the pleadings Reference was made to the various findings of the learned Arbitrator which were elaborately discussed in the award along with the submissions and documents produced by the respective parties. The Court further observed that the threshold to prove fraud and corruption on the part of the learned Arbitrator in the making of the award would be much higher than a criticism of the findings of the learned Arbitrator. Moreover, the Petitioner also failed to substantiate that the Respondent had intentionally withheld documents in order to mislead the learned Arbitrator and had obtained the award by unfair means.

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History of this topic

Serious Allegations Of Fraud Constituting Criminal Offense Are Non-Arbitrable: Delhi High Court
4 days, 16 hours ago

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

Live Law  

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 new arbitrator held that the dispute was not arbitrable due to the serious allegations of fraud which required examination of witnesses from foreign authorities and governmental bodies. The Supreme Court held that …

Merit Based Review Of Arbitral Award Is Impermissible Under Section 37 Of Arbitration Act: Delhi High Court
3 months, 3 weeks ago

Merit Based Review Of Arbitral Award Is Impermissible Under Section 37 Of Arbitration Act: Delhi High Court

Live Law  

The Delhi High Court bench of Justices Vibhu Bakhru and Sachin Datta affirmed that the scope of jurisdiction under Section 34 and Section 37 of the Act is not akin to normal appellate jurisdiction. In the impugned award, the learned sole Arbitrator, at the very outset, considered the divergent factual versions given by the parties as regards the alleged cash …

Arbitral Award Without Rationale For Damages Is Ex Facie Contrary To Settled Law, Can Be Set Aside: Delhi High Court
4 months, 1 week ago

Arbitral Award Without Rationale For Damages Is Ex Facie Contrary To Settled Law, Can Be Set Aside: Delhi High Court

Live Law  

The Delhi High Court bench of Justice Sachin Datta has observed that any award of damages, on the touch stone of Section 73 of the Indian Contract Act, must be predicated on actual loss suffered. Observations: The court held that the impugned award did not warrant interference under section 34 of the Arbitration Act being predicated on a plausible interpretation …

Patent Illegality | For Claim For Damages There Must Be Proof Of Actual Loss: Bombay High Court Stays Arbitral Award
11 months, 2 weeks ago

Patent Illegality | For Claim For Damages There Must Be Proof Of Actual Loss: Bombay High Court Stays Arbitral Award

Live Law  

The Bombay High Court single bench of Justice R.I. Chagla stayed an arbitral award noting that the Arbitrator contravened the settled law that for a claim for damages, there must be proof of actual loss which is sine qua non for such claim. Moreover, it argued that despite the Arbitrator's acknowledgment that the claim was one of damages, the actual …

Arbitral Award With Internal Contradictions Is Perverse And Patently Illegal; Delhi High Court allows Section 34 Petition
1 year ago

Arbitral Award With Internal Contradictions Is Perverse And Patently Illegal; Delhi High Court allows Section 34 Petition

Live Law  

The Delhi High Court single bench comprising Justice Sachin Datta held that an award suffering from internal contradictions is considered perverse and patently illegal under Section 34 of the Arbitration and Conciliation Act, 1996. The Petitioner challenged the arbitral award under Section 34 of the Arbitration and Conciliation Act, 1996 in the Delhi High Court. The Petitioner challenged the impugned …

Fraud Being Non-Arbitrable Due To Complexity Is Archaic Position, Contemporary Arbitration Practice Has Evolved: Bombay High Court
1 year, 1 month ago

Fraud Being Non-Arbitrable Due To Complexity Is Archaic Position, Contemporary Arbitration Practice Has Evolved: Bombay High Court

Live Law  

The Bombay High Court single bench comprising Justice Bharati Dangre held that due to an evolution in contemporary arbitration where there was a belief that fraud disputes were unsuitable for arbitration, today, arbitral tribunals routinely navigate through extensive material in various dispute types. Thereafter, the Petitioner approached the Bombay High Court and filed a Commercial Arbitration Petition to adjudicate the …

‘Fraudulent’ Conduct Of Railways Has Shocked Our Conscience: Calcutta HC Unconditionally Stays Arbitral Award, Directs Probe By Union Govt
1 year, 7 months ago

‘Fraudulent’ Conduct Of Railways Has Shocked Our Conscience: Calcutta HC Unconditionally Stays Arbitral Award, Directs Probe By Union Govt

Live Law  

The Calcutta High Court today unconditionally stayed an award granted in favour of the South Eastern Railways under the Arbitration & Conciliation Act, 1996 on grounds of fraud and corruption perpetrated by collusion between the parties in obtaining the impugned award. Finally, the petitioners argued that the tribunal in awarding a sum of Rs 1301 crores, had failed to consider …

Inability To Pay Portion Of Owed Money Can’t Lead To Criminal Prosecution Unless Fraudulent Intention Shown Right From Beginning: Calcutta High Court
1 year, 10 months ago

Inability To Pay Portion Of Owed Money Can’t Lead To Criminal Prosecution Unless Fraudulent Intention Shown Right From Beginning: Calcutta High Court

Live Law  

The Calcutta High Court on Monday quashed the criminal proceedings under Sections 484, 406 and 34 of IPC against a businessman who had allegedly refused to pay a portion of the price of goods purchased by him, on the ground that the accused did not have any fraudulent or dishonest intention right from the beginning of the transaction. The single …

Award Debtor Failed To Take Recourse To S. 26 of Arbitration Act; Cannot Challenge Award Claiming Expert Was Not Examined: Bombay High Court
2 years, 1 month ago

Award Debtor Failed To Take Recourse To S. 26 of Arbitration Act; Cannot Challenge Award Claiming Expert Was Not Examined: Bombay High Court

Live Law  

The Bombay High Court has ruled that if an award debtor has failed to take recourse to the provisions of Section 26 of the Arbitration and Conciliation Act, 1996, it cannot seek to set aside the award on the ground that the expert, whose report was relied upon by the arbitrator, was not examined by the opposite party. The petitioner, …

Award Of Costs By Arbitrator, Not Containing Quantification And Reasons, Is Arbitrary: Delhi High Court
2 years, 2 months ago

Award Of Costs By Arbitrator, Not Containing Quantification And Reasons, Is Arbitrary: Delhi High Court

Live Law  

The Delhi High Court has ruled that the mandate contained in Section 31 of the Arbitration and Conciliation Act, 1996, as per which an arbitral award shall state the reasons on which it is based, must pervade every aspect of the award, including the award of costs. The petitioner challenged the award of pendente-lite interest and costs of proceedings imposed …

Criminal Proceedings Cannot Be Initiated For Recovery Of Amount Due Under The Arbitration Award: Calcutta High Court
2 years, 3 months ago

Criminal Proceedings Cannot Be Initiated For Recovery Of Amount Due Under The Arbitration Award: Calcutta High Court

Live Law  

The Calcutta High Court has held that criminal proceedings cannot be initiated for recovery of amount due under an arbitration award. The bench of Justice Tirthankar Ghosh held that a party aggrieved by non-payment of amount due under a post award settlement agreement should not resort to filing a criminal case by giving a civil dispute criminal colour as the …

Arbitral Award Directing Specific Performance Of Contract, Cannot Be Set Aside On Ground Of Inequitable Nature Of Contract: Madras High Court
2 years, 5 months ago

Arbitral Award Directing Specific Performance Of Contract, Cannot Be Set Aside On Ground Of Inequitable Nature Of Contract: Madras High Court

Live Law  

The Madras High Court has ruled that an arbitral award directing specific performance of a contract, cannot be set aside on the ground that the nature of agreement between the parties was not capable of specific enforcement. The respondents, including J. Vengatesh, submitted before the Single Judge that the sale agreement was inequitable and unfair, and that the arbitral award …

Arbitrator Cannot Delegate The Task Of Quantifying The Amount Of Award To A Chartered Accountant: Calcutta High Court
2 years, 5 months ago

Arbitrator Cannot Delegate The Task Of Quantifying The Amount Of Award To A Chartered Accountant: Calcutta High Court

Live Law  

The Calcutta High Court has held that the arbitrator can indeed take assistance from a third party, including a Chartered Accountant, however, it cannot completely delegate the important function of quantifying the amount of award to any third party. The arbitrator had allowed the interest on delayed payment as provided under the MSMED Act and directed the respondent to place …

Materials Before Court Insufficient To Decide Fraud In Relation To Existence Of Arbitration Agreement, Arbitrator To Decide Issue: Kerala HC
2 years, 5 months ago

Materials Before Court Insufficient To Decide Fraud In Relation To Existence Of Arbitration Agreement, Arbitrator To Decide Issue: Kerala HC

Live Law  

The Kerala High Court on Thursday reiterated that where a plea of fraud is raised in a dispute, the civil aspect of fraud is arbitrable, unless the very arbitration agreement is found to have been vitiated by fraud. While observing so, the bench held that in the instant case, since the materials before the Court were insufficient to conclusively decide …

Arbitral Award With Contradictory Findings Is Liable To Be Set Aside: Calcutta High Court
2 years, 6 months ago

Arbitral Award With Contradictory Findings Is Liable To Be Set Aside: Calcutta High Court

Live Law  

The High Court of Calcutta has held that an arbitral award wherein the arbitrator has given contradictory findings is liable to be set aside. The arbitrator has given contradictory findings regarding the issue of delay in the execution of the work as on one hand it has observed that not a single party cannot be held responsible for the delay …

Arbitral Award Vitiated By Serious Fraud And Criminal Conspiracy Can Be Set Aside In A Writ Petition: Chhattisgarh High Court
2 years, 8 months ago

Arbitral Award Vitiated By Serious Fraud And Criminal Conspiracy Can Be Set Aside In A Writ Petition: Chhattisgarh High Court

Live Law  

The High Court of Chhattisgarh has held that an arbitral award that is vitiated by fraud and criminal conspiracy would be void and non-est and can be set aside in a Writ Petition and the availability of an alternative remedy under Section 34 of the A&C Act is not a bar to the maintainability of the petition. The Court held …

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