Arbitral Tribunal May Impose Costs On Party Abusing Referral Court's Limited Jurisdiction To Compel Another's Participation In Arbitration : Supreme Court
4 months, 2 weeks ago

Arbitral Tribunal May Impose Costs On Party Abusing Referral Court's Limited Jurisdiction To Compel Another's Participation In Arbitration : Supreme Court

Live Law  

The Supreme Court held that in the interest of justice, the Arbitral Tribunal may impose costs on the Party who abused the process of law constraining another party to participate in the Arbitral Proceedings by taking advantage of minimal judicial interference at the referral stage. “In order to balance such a limited scope of judicial interference with the interests of the parties who might be constrained to participate in the arbitration proceedings, the arbitral tribunal may direct that the costs of the arbitration shall be borne by the party which the Tribunal ultimately finds to have abused the process of law and caused unnecessary harassment to the other party to the arbitration.”, the court said. According to the Court, “some parties might take undue advantage of such a limited scope of judicial interference of the referral courts and force other parties to the agreement into participating in a time-consuming and costly arbitration process.” The Court stated that while courts are required to refer issues such as claims being time-barred or the inclusion of non-signatories to arbitration, the Arbitral Tribunal has the authority to impose the costs of the entire arbitration on the party who forced another party to participate by exploiting the court's limited jurisdiction to decide on such matters. Reiterating the view taken in the cases of In Re: Interplay and SBI General Insurance v Krish Spinning, the Court said that at the referral stage, the courts should limit its inquiry on the question of whether there existed a valid arbitration agreement between the parties and whether the application for appointment of an arbitrator was filed with three years limitation period.

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History of this topic

[Arbitration Act] Pre-Referral Jurisdiction Of Court U/S 11(6) Includes Inquiry On Whether Claims Are Ex-Facie & Hopelessly Time Barred: Calcutta HC
3 weeks, 4 days ago

[Arbitration Act] Pre-Referral Jurisdiction Of Court U/S 11(6) Includes Inquiry On Whether Claims Are Ex-Facie & Hopelessly Time Barred: Calcutta HC

Live Law  

The Calcutta High Court Bench of Justice Shampa Sarkar has held that while the scope of adjudication by referral court is limited and entails a mere examination of whether the arbitration agreement exists or not, the referral court is not precluded from examining whether the claim is deadwood or ex facie barred. As per the decision of the Apex Court …

Supreme Court Reiterates Narrow Scope Of Interference Under Section 37 Arbitration Act
1 month, 3 weeks ago

Supreme Court Reiterates Narrow Scope Of Interference Under Section 37 Arbitration Act

Live Law  

The Supreme Court reiterated that in appeal under Section 37 of the Arbitration and Conciliation Act, the Court has a narrower scope to review the arbitral award if the award has already been upheld under Section 34. In appeal, Section 37 of the Act grants narrower scope to the appellate court to review the findings in an award, if it …

Arbitration Cases Quarterly Digest: October To December 2024
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2 months, 3 weeks ago

Arbitration Cases Quarterly Digest: October To December 2024

Live Law  

Supreme Court Case Title: R.P. Agreement Between Parties Must Be Given Primacy When Deciding Petition U/S 9 Of Arbitration Act: Delhi High Court Case Title: M/S INNOVATIVE FACILITY SOLUTIONS PVT LTD v. M/S AFFORDABLE INFRASTRUCTURE Citation: 2024 LiveLaw 1192 The Delhi High Court Bench of Mr. Justice Jasmeet Singh held that the role of the court under section 9 of …

Delhi High Court Stays Arbitral Proceedings Where Petitioner's Defence Was Struck-Off Due To Non-Payment Of Arbitral Fees
4 months ago

Delhi High Court Stays Arbitral Proceedings Where Petitioner's Defence Was Struck-Off Due To Non-Payment Of Arbitral Fees

Live Law  

The Delhi High Court bench of Justice Sanjeev Narula has held that the striking off of the defence of the Petitioner for non-payment of arbitral fees is a drastic measure that exceeds the jurisdiction of the Arbitrator. The court noted that “Section 38 of the Arbitration and Conciliation Act stipulates that parties shall deposit equal shares of the arbitral fees. …

Courts Can't Constantly Interfere And Micro-Manage Arbitral Proceedings: Bombay High Court
8 months ago

Courts Can't Constantly Interfere And Micro-Manage Arbitral Proceedings: Bombay High Court

Live Law  

The Bombay High Court bench of Justice Arif S. Doctor has held that the court cannot constantly interfere with and micromanage proceedings which are pending before Arbitral Tribunals. The bench held that the court: will not interfere with the exercise of discretion by the Arbitral Tribunal and substitute its own view except when the Arbitral Tribunal has acted arbitrarily, or …

Arbitration | Dispute Regarding Full & Final Settlement Of Contract Is Arbitrable : Supreme Court
8 months, 1 week ago

Arbitration | Dispute Regarding Full & Final Settlement Of Contract Is Arbitrable : Supreme Court

Live Law  

The Supreme Court held that if any dispute arises as to whether a contract has been discharged or not, such a dispute is arbitrable. “Although ordinarily no arbitrable disputes may subsist after execution of a full and final settlement, yet any dispute pertaining to the full and final settlement itself, by necessary implication being a dispute arising out of or …

Arbitration | Referral Courts Must Not Conduct Intricate Enquiry On Whether Claims Are Time-Barred : Supreme Court Clarifies 'Arif Azim' Judgment
8 months, 1 week ago

Arbitration | Referral Courts Must Not Conduct Intricate Enquiry On Whether Claims Are Time-Barred : Supreme Court Clarifies 'Arif Azim' Judgment

Live Law  

The Supreme Court held that while deciding a Section 11 petition for an appointment of an arbitrator, the referral courts must not conduct an intricate evidentiary enquiry into the question of whether the claims raised by the applicant are time-barred and should leave that question for determination by the arbitrator. The bench comprising CJI DY Chandrachud and Justices JB Pardiwala …

Arbitral Tribunal Cant Go Outside Reference Order, Cannot Widen Its Jurisdiction By Dealing With Disputes Not Referred To It: Punjab And Haryana High Court
10 months, 2 weeks ago

Arbitral Tribunal Cant Go Outside Reference Order, Cannot Widen Its Jurisdiction By Dealing With Disputes Not Referred To It: Punjab And Haryana High Court

Live Law  

The Punjab and Haryana High Court single bench of Justice Suvir Sehgal held that an Arbitral Tribunal cannot go outside the reference order by the Punjab State Electricity Regulatory Commission under Section 86 of the Electricity Act, 2003 and cannot widen its jurisdiction by dealing with disputes not referred to it. Observations by the High Court: The High Court noted …

Arbitration Weekly Round Up: 22nd April to 28th April 2024
10 months, 3 weeks ago

Arbitration Weekly Round Up: 22nd April to 28th April 2024

Live Law  

Allahabad High Court Court Under Section 19 Of MSMED Act, 2006 Empowered To Allow Predeposit In Installments: Allahabad High Court Case Title: M/S Docket Care Systems vs M/S Hariwill Electronics India Pvt. Delhi High Court Debt Acknowledged In Letters, Delhi High Court Grants Benefit Of Section 18 To Hold Invocation Of Arbitration Within Limitation Case Title: Paisalo Digital Limited v. …

Appointment Of Arbitrator In Violation Of S. 12(5) Of A&C Act Is Void, Waiver Of This Provision Requires Explicit Written Agreement: Kerala High Court
11 months ago

Appointment Of Arbitrator In Violation Of S. 12(5) Of A&C Act Is Void, Waiver Of This Provision Requires Explicit Written Agreement: Kerala High Court

Live Law  

The Kerala High Court single bench of Justice G. Girish held that the exemption provided for under the proviso of Section 12 of the Arbitration and Conciliation Act applies only in cases where there is a waiver explicitly agreed upon in writing by the parties involved. Feeling aggrieved, the Petitioner approached the Kerala High Court under Section 14 read with …

Arbitration Act| Debatable Questions Of Fact Cannot Be Decided In Proceedings U/ S 11(6): Allahabad High Court
1 year, 1 month ago

Arbitration Act| Debatable Questions Of Fact Cannot Be Decided In Proceedings U/ S 11(6): Allahabad High Court

Live Law  

The Allahabad High Court has reiterated that the scope of judicial review in proceedings under Section 11 of the Arbitration and Conciliation Act, 1996 is very narrow. “In the said judgment, it has been observed that while deciding issue of arbitrability, the Court under Section 11 has a very limited power, confined to cases where there is not even a …

Right Of A Party To Nominate 2/3rd Of The Arbitral Tribunal Violates Counter-Balancing: Delhi High Court Reiterates
1 year, 3 months ago

Right Of A Party To Nominate 2/3rd Of The Arbitral Tribunal Violates Counter-Balancing: Delhi High Court Reiterates

Live Law  

The High Court of Delhi has held that an arbitration clause that confers on a party the right to nominate 2/3rd of arbitral tribunal violates the principles of 'counter-balancing' as sought to be achieved by the Supreme Court in the landmark judgment in Perkins. That the Supreme Court in CORE has upheld the validity of a similarly worded arbitration clause …

Moratorium Under IBC Does Not Bar Payment Of Fees To Arbitrator Due Prior To Moratorium: Madras High Court
1 year, 6 months ago

Moratorium Under IBC Does Not Bar Payment Of Fees To Arbitrator Due Prior To Moratorium: Madras High Court

Live Law  

The High Court of Madras has held that the moratorium under Section 14 of the Insolvency and Bankruptcy Code, 2016 does not affect the payment of fees to the arbitrator for the award passed before the moratorium was declared. The Court referred to the decision of the Supreme Court in ONGC v. Afcons Gunanusa, wherein the Apex Court had noted …

Arbitration Cases Weekly Round-Up: 14 To 20 May, 2023
1 year, 10 months ago

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

Live Law  

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 …

Referral Court Has Duty To Conclusively Decide Issue Of ‘Existence & Validity Of Arbitration Agreement’ Raised At Pre-Referral Stage : Supreme Court
1 year, 10 months ago

Referral Court Has Duty To Conclusively Decide Issue Of ‘Existence & Validity Of Arbitration Agreement’ Raised At Pre-Referral Stage : Supreme Court

Live Law  

The Supreme Court has held that under Section 11 of the Arbitration and Conciliation Act, 1996, when the issue of ‘existence and validity of an arbitration agreement’ is raised at pre-referral stage, then the Court is duty bound to conclusively decide the issue. Ltd. & Ors., has observed that the ‘pre-referral’ jurisdiction of Court under Section 11 of Arbitration and …

Arbitral Tribunal’s Order Rejecting Party’s Request To File Counter Claims On Ground Of Delay, Doesn’t Foreclose Its Right To Invoke Arbitration: Delhi High Court
2 years ago

Arbitral Tribunal’s Order Rejecting Party’s Request To File Counter Claims On Ground Of Delay, Doesn’t Foreclose Its Right To Invoke Arbitration: Delhi High Court

Live Law  

The Delhi High Court has ruled that the Arbitral Tribunal’s order rejecting a party’s request to file counter claims on the ground of delay, does not foreclose its right to invoke arbitration seeking independent reference of its claims. In a petition filed by the respondent under Section 11 of the Arbitration and Conciliation Act, 1996 before the Delhi High Court, …

Arbitral Fee Under The Fourth Schedule Of A&C Act, Supreme Court Settles The Issue
2 years, 3 months ago

Arbitral Fee Under The Fourth Schedule Of A&C Act, Supreme Court Settles The Issue

Live Law  

On August 30, 2022, the Supreme Court in the case of ONGC v. Afcons Gunanusa JV whilst dealing with critical issues pertaining to the interpretation of the Fourth Schedule to the Arbitration and Conciliation Act, 1996 and unilateral fixation of arbitral fee, emphasised on party autonomy in arbitration proceedings and crystalized the law relating to arbitrator's fees. The Court determined …

'Hold Preliminary Hearings To Fix Arbitrator's Fee' : Supreme Court Issues Directives To Govern Fees Of Arbitrators
2 years, 6 months ago

'Hold Preliminary Hearings To Fix Arbitrator's Fee' : Supreme Court Issues Directives To Govern Fees Of Arbitrators

Live Law  

In its judgment holding that arbitrators do not have the power to unilaterally fix their fees, the Supreme Court also issued directives governing fees of arbitrators in ad hoc arbitrations.The bench comprising Justices DY Chandrachud, Surya Kant and Sanjiv Khanna observed that the fees of the arbitrators must be fixed at the inception to avoid unnecessary litigation and conflicts between. …

Power Of Arbitral Tribunal To Award Interest Is Discretionary & Subject To Agreement Between Parties: Supreme Court
2 years, 10 months ago

Power Of Arbitral Tribunal To Award Interest Is Discretionary & Subject To Agreement Between Parties: Supreme Court

Live Law  

The Supreme Court has held that the power of the arbitral tribunal to award interest is subject to an agreement between the parties to the contrary. The Court also held that ordinarily the total amount of sum awarded on which the future interest is to be given would include the principal amount and the amount awarded as interest pendente lite. …

Arbitrators Raising Fees In The Middle Of Arbitration May Amount To Misconduct, Supreme Court Says During Hearing
2 years, 11 months ago

Arbitrators Raising Fees In The Middle Of Arbitration May Amount To Misconduct, Supreme Court Says During Hearing

Live Law  

The Supreme Court on Thursday continued hearing on the issue of fixation of standards for fees for arbitrators. For Determination Of Arbitrator's Fees Claim & Counterclaim Should Be Charged Separately; Legislature Has Been Very Conscious Since Its Mindfulness To Situation That Counterclaim Puts Separate Cause Of Action; There Has To Be Overarching Dignity Which Must Encompass Arbitration Proceeding & While …

Court Can Appoint An Arbitrator During The Pendency Of An Appeal Against An Award, Set Aside On Reasons Other Than Merit : Bombay High Court
2 years, 11 months ago

Court Can Appoint An Arbitrator During The Pendency Of An Appeal Against An Award, Set Aside On Reasons Other Than Merit : Bombay High Court

Live Law  

The High Court of Bombay has held that when an award is set aside for other reasons and not on merit, the parties are well within their rights to initiate fresh arbitration in respect of the same claims and pendency of an appeal against such an order is not a ground to refuse the appointment. Menon has further held that …

Writ Jurisdiction Cannot Be Invoked To Challenge Appointment Of Arbitrator: Kerala High Court
3 years, 2 months ago

Writ Jurisdiction Cannot Be Invoked To Challenge Appointment Of Arbitrator: Kerala High Court

Live Law  

The Kerala High Court recently held that writ jurisdiction cannot be invoked to challenge the appointment of an arbitrator since such grievances could be redressed as per the provisions of the Arbitration and Conciliation Act, 1996.Ruling that there should not be any judicial interference in the course of the arbitral proceedings for redressal of such grievances, Justice P.B. The Kerala …

'Complete Abuse Of Process': Madras HC Imposes Rs 1 Lakh Costs For 'Worthless' Appeal, Cautions Against Impleading Arbitrators
3 years, 5 months ago

'Complete Abuse Of Process': Madras HC Imposes Rs 1 Lakh Costs For 'Worthless' Appeal, Cautions Against Impleading Arbitrators

Live Law  

The Madras High Court on Wednesday imposed Rs 1 lakh costs on an appellant while dismissing a challenge to an arbitral award by terming it to be an abuse of the process of law. The appellant was directed to pay Rs 50,000 to the respondent and a further Rs 50,000 to the Tamil Nadu Legal Services Authority within a month.A …

Existence Of Arbitration Clause Does Not Debar Court From Entertaining A Writ Petition In Contractual Matter: Supreme Court
3 years, 10 months ago

Existence Of Arbitration Clause Does Not Debar Court From Entertaining A Writ Petition In Contractual Matter: Supreme Court

Live Law  

The existence of an arbitration clause does not debar the court from entertaining a writ petition, the Supreme Court observed in a judgment passed on Wednesday.In this case, the Allahabad High Court allowed a writ petition filed by CG Power and Industrial Solutions Limited challenging the directions issued by Executive Engineer, Unnao UPPTCL it to remit Labour Cess amounting. The …

Arbitration- Tribunals Should Decide Objections On Its Jurisdiction As Preliminary Issue; High Courts Have Limited Power To Interfere In Proceedings :Delhi HC
3 years, 11 months ago

Arbitration- Tribunals Should Decide Objections On Its Jurisdiction As Preliminary Issue; High Courts Have Limited Power To Interfere In Proceedings :Delhi HC

Live Law  

The Delhi High Court recently made significant observations with regard to the power of an Arbitral Tribunal to rule on its own jurisdiction and the manner of deciding the same. A Single Bench of Justice Prathiba M. Singh also addressed the issue of jurisdiction of High Courts over arbitral tribunals and the scope of such interference. In her order, Justice …

High Court's Power Under Article 226/227 To Interfere With Arbitration Process Needs To Be Exercised In Exceptional Rarity: Supreme Court
4 years, 2 months ago

High Court's Power Under Article 226/227 To Interfere With Arbitration Process Needs To Be Exercised In Exceptional Rarity: Supreme Court

Live Law  

The Supreme Court has observed that the power of the High Courts under Article 226/227 of the Constitution of India to interfere with an arbitration process needs to be exercised in exceptional rarity, wherein one party is left remediless under the statute or a clear 'bad faith' shown by one of the parties. If the Courts are allowed to interfere …

Non-Participation In Arbitral Proceedings Results In Waiver Of Right To Raise Objections On Jurisdiction After Award : SC [Read Judgment]
4 years, 10 months ago

Non-Participation In Arbitral Proceedings Results In Waiver Of Right To Raise Objections On Jurisdiction After Award : SC [Read Judgment]

Live Law  

The Supreme Court on Wednesday held that non-participation in Arbitral proceedings by a party and failur to raise objections before the Arbitrator would preclude the party from doing so after the passing of an Arbitral Award.A bench comprising Justices Uday Umesh Lalit & Vineet Saran further pointed out that the specification of a "Venue" or "Place" of arbitration may not …

Issue Of Limitation Not To Be Examined While Considering Application Seeking Appointment Of Arbitrator: SC [Read Judgment]
5 years, 4 months ago

Issue Of Limitation Not To Be Examined While Considering Application Seeking Appointment Of Arbitrator: SC [Read Judgment]

Live Law  

The Supreme Court has observed that, while considering an application under Section 11 of the Arbitration and Conciliation Act seeking appointment of an arbitrator, scope of examination by the Court is to be confined only to the existence of the arbitration agreement and nothing more..Once the existence of the arbitration agreement is not disputed, all issues, including jurisdictional. The Supreme …

Pre-Deposit Clauses To Invoke Arbitration Makes Arbitral Process Ineffective And Expensive: SC [Read Judgment]
6 years ago

Pre-Deposit Clauses To Invoke Arbitration Makes Arbitral Process Ineffective And Expensive: SC [Read Judgment]

Live Law  

The Supreme Court has observed that pre-deposit clauses to invoke arbitration would render the arbitral process ineffective and expensive. The case of the company which was awarded the said tender was that the said arbitration clause contained in the tender condition amounts to a contract of adhesion and arbitration being an alternative dispute resolution process, a 10% deposit would amount …

Arbitral Tribunal Can Make Representation To HC For Contempt If Parties Violate Its Orders: SC [Read Judgment]
7 years, 8 months ago

Arbitral Tribunal Can Make Representation To HC For Contempt If Parties Violate Its Orders: SC [Read Judgment]

Live Law  

The Supreme Court, in Alka Chandewar vs Shamshul Ishrar Khan, has held that an arbitral tribunal is empowered to make representation to the court for contempt if the orders, including the interim orders passed by the arbitrator, are violated by the parties before it.The appeal was against a Bombay High Court judgment which had held that such a representation by …

Empowered Arbitral Tribunals - Better Times For Arbitration
8 years ago

Empowered Arbitral Tribunals - Better Times For Arbitration

Live Law  

In any dispute, securing an interim relief at the outset of such dispute is one of the most crucial aspects to enable a party to finally enjoy the fruits under the Award/Decree after adjudication of such dispute. Recognising these characteristics, the Arbitration and Conciliation Act, 2015 has introduced several changes in the Act.One of the most important changes is the …

Empowered Arbitral Tribunals - Better Times For Arbitration
8 years ago

Empowered Arbitral Tribunals - Better Times For Arbitration

Live Law  

In any dispute, securing an interim relief at the outset of such dispute is one of the most crucial aspects to enable a party to finally enjoy the fruits under the Award/Decree after adjudication of such dispute. Recognising these characteristics, the Arbitration and Conciliation Act, 2015 has introduced several changes in the Act.One of the most important changes is the …

Courts shall minimize interference with arbitration process: Delhi HC (DB) [Read Order]
8 years, 8 months ago

Courts shall minimize interference with arbitration process: Delhi HC (DB) [Read Order]

Live Law  

Courts need to remind themselves that the trend is to minimize interference with arbitration process as that is the forum of choice, the Bench said.A Division Bench of the Delhi High Court in MCDONALD’S INDIA PRIVATE LIMITED VS. VIKRAM BAKSHI has observed that, Courts must be extremely circumspect and, indeed, reluctant to thwart arbitration proceedings and the power to injunct. …

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