An Award Which Blatantly Misapplies The Provisions Of The Contract Law Resulting In A Perverse Interpretation Of The Law, Is Liable To Be Set Aside: Delhi High Court
1 year, 3 months ago

An Award Which Blatantly Misapplies The Provisions Of The Contract Law Resulting In A Perverse Interpretation Of The Law, Is Liable To Be Set Aside: Delhi High Court

Live Law  

The High Court of Delhi has held that an award which blatantly misapplies the provisions of the Contract Law resulting in a perverse interpretation of the law, is liable to be set aside. The petitioner also preferred an application under Section 16 of the A&C Act challenging the jurisdiction of the arbitral tribunal on the ground that the petitioner is covered under the provisions of Uttar Pradesh Regulation of Cold Storages Act 1976, therefore, the dispute has to be referred to the authority mentioned in the act and the dispute is non-arbitrable as a special forum is created therein. The arbitrator also erred in rejecting the application preferred by the petitioner under Section 27 of the A&C Act seeking he assistance of Civil Court for examination of Government official i.e. The Court held that an award which blatantly misapplies the provisions of the Contract Law resulting in a perverse interpretation of the law, is liable to be set aside.

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History of this topic

Delhi High Court Reiterates Limited Scope Of Section 34 Of Arbitration & Conciliation Act
17 hours, 58 minutes ago

Delhi High Court Reiterates Limited Scope Of Section 34 Of Arbitration & Conciliation Act

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The High Court of Delhi pronounced a judgement in the matter of “Centre for Research Planning and Action v. National Medicinal Plants Board Ministry of AYUSH Government of India” FAO 161/2022 dated 8th January, 2025 re-iterating the limited scope of Section 34 of The Arbitration and Conciliation Act. Respondent refused to entertain any claim when invoices were raised after March …

Delhi HC Upholds Limited Judicial Interference In Arbitral Awards, Dismisses S.34 Plea Challenging Award Of ₹77.96 Crore In Telecom Dispute
2 weeks, 2 days ago

Delhi HC Upholds Limited Judicial Interference In Arbitral Awards, Dismisses S.34 Plea Challenging Award Of ₹77.96 Crore In Telecom Dispute

Live Law  

The Delhi High Court bench of Justice Dinesh Kumar Sharma has observed that it is no longer res integra that while dealing with the objections under Section 34, a court does not sit in appeal over the arbitral award. The court observed that under Section 35, an award can be set aside only if the petitioner establishes that the parties …

S.34 Application Cannot Be Rejected Merely Because Approach Of Court Should Be Not To Interfere With Award: Delhi High Court
1 month, 2 weeks ago

S.34 Application Cannot Be Rejected Merely Because Approach Of Court Should Be Not To Interfere With Award: Delhi High Court

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The Delhi High Court Bench of Justice Rekha Palli and Justice Saurabh Banerjee have held that the Arbitral Award should not be interfered with lightly, the same does not imply that applications filed under Section 34 ought to be rejected only on the grounds that the approach of the Court should be not to interfere with the award. Additionally, the …

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

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

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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 …

Award Cannot Be Set Aside U/S 34 Of Arbitration Act If View Taken By Arbitrator Is A Plausible View: Delhi High Court
2 months ago

Award Cannot Be Set Aside U/S 34 Of Arbitration Act If View Taken By Arbitrator Is A Plausible View: Delhi High Court

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The Delhi High Court bench of Justice Sachin Datta has held that conduct of the parties has to be seen before granting equitable relief for specific performance of the contract. Brief Facts The present petition under Section 34 of the Arbitration and Conciliation Act, 1996 assails an arbitral award dated 12.04.2022, whereby the arbitral tribunal has refused to grant specific …

Award Must Not Be Set Aside On Ground Of Mere Erroneous Application Of Law Unless Patent Illegality Is Established U/S 34: Madras HC
2 months, 1 week ago

Award Must Not Be Set Aside On Ground Of Mere Erroneous Application Of Law Unless Patent Illegality Is Established U/S 34: Madras HC

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The Madras High Court bench of Justices M.Sundar And K.Govindarajan Thilakavadi affirmed that the scope of interference under Section 34 of the Arbitration Act is limited and within the contours of the ground specified under Section 34 of the Act. Brief Facts This is an Appeal under Section 37 of the Arbitration and Conciliation Act, 1996, against the order dated …

Arbitral Tribunal Can Award Compensation For Breach If Contract Is Incapable Of Specific Performance: Delhi High Court
5 months, 4 weeks ago

Arbitral Tribunal Can Award Compensation For Breach If Contract Is Incapable Of Specific Performance: Delhi High Court

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The Delhi High Court bench of Justice Vibhu Bakhru and Justice Tara Vitasta Ganju has held that the arbitral tribunal may exercise its power to award compensation for breach if a Contract has become incapable of specific performance. The Appellant's petition under Section 34 was dismissed, with the High Court noting that it cannot interfere with the arbitral tribunal's findings …

Arbitrator Failed To Deal With Material Contentions, Arbitral Award Would Not Satisfy The Requirement Of A Reasoned Award: Delhi High Court
8 months, 3 weeks ago

Arbitrator Failed To Deal With Material Contentions, Arbitral Award Would Not Satisfy The Requirement Of A Reasoned Award: Delhi High Court

Live Law  

The High Court of Delhi has held that when the arbitral tribunal fails to deal with submissions of a party on a contentious issue, the resultant award would not fulfil the requirements of a reasoned award as required under Section 31 of the A&C Act. It held that the tribunal cannot simply accept unquantified claims without assigning reasons and without …

Arbitral Award With Internal Contradictions Is Perverse And Patently Illegal; Delhi High Court allows Section 34 Petition
10 months, 3 weeks ago

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

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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 …

Arbitrator Failed To Consider Document Based On Procedural Defects, Delhi High Court Sets Aside Award
1 year, 3 months ago

Arbitrator Failed To Consider Document Based On Procedural Defects, Delhi High Court Sets Aside Award

Live Law  

The High Court of Delhi has held that an arbitrator should not refuse to take on record any additional material evidence merely on the ground of certain procedural ground such as non-payment of costs by the party tendering such evidence. The bench of Justice Neena Bansal Krishna held that failure of the arbitrator to take on record important additional evidence …

Award On Damages Cannot Be Sustained Just On Penalty Clause In Agreement: Delhi High Court
1 year, 3 months ago

Award On Damages Cannot Be Sustained Just On Penalty Clause In Agreement: Delhi High Court

Live Law  

The Delhi High Court has held that an award of damages based on no evidence of loss cannot be sustained on the basis of a penalty clause in the agreement. The bench of Justices Vibhu Bakhru and Amit Mahajan held that mere presence of a clause providing for liquidated damages does not dispense with the requirement of proof of loss …

Orders Of Arbitral Tribunal Not Signed By All Arbitrators And Absence Of An Arbitrator During Certain Proceedings, Cannot Be A Ground To Set Aside Award: Delhi High Court
1 year, 6 months ago

Orders Of Arbitral Tribunal Not Signed By All Arbitrators And Absence Of An Arbitrator During Certain Proceedings, Cannot Be A Ground To Set Aside Award: Delhi High Court

Live Law  

The Delhi High Court has reiterated that procedural irregularity cannot be a ground to set aside the Arbitral Award unless such irregularity goes to the root of the matter and shocks the conscience of the Court, thus making the Award illegal. The bench remarked that procedural irregularities like some of the Orders of the Arbitral Tribunal not being signed by …

Intention Of Legislature Is To Limit The Interference By The Courts In The Process Of Arbitration: Delhi HC
1 year, 8 months ago

Intention Of Legislature Is To Limit The Interference By The Courts In The Process Of Arbitration: Delhi HC

Live Law  

The Delhi High Court while dismissing the Petitions filed under Section 34 of Arbitration and Conciliation Act, 1996 has observed that it was deemed necessary by the legislature as well as the Courts to limit the interference by the Courts in the process of Arbitration, especially after the proceedings had been concluded. The Court also observed that unfettered intervention in …

An Arbitration Award In Violation Of The Provisions Of The Indian Contracts Act Is Patently Illegal: Delhi High Court
1 year, 10 months ago

An Arbitration Award In Violation Of The Provisions Of The Indian Contracts Act Is Patently Illegal: Delhi High Court

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The High Court of Delhi has held that an arbitration award that is passed in violation of the provisions of the Indian Contracts Act, 1872 would be liable to be set aside as suffering from patent illegality. The bench of Neena Bansal Krishna partially set aside an arbitration award that was passed in contravention of Sections 59-61 of the Indian …

Award Of Costs By Arbitrator, Not Containing Quantification And Reasons, Is Arbitrary: Delhi High Court
1 year, 11 months ago

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

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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 …

‘Limitation’ Doesn’t Involve Any “Basic Notions Of Morality Or Justice”, For Setting Aside Award : Bombay High Court
1 year, 11 months ago

‘Limitation’ Doesn’t Involve Any “Basic Notions Of Morality Or Justice”, For Setting Aside Award : Bombay High Court

Live Law  

The Bombay High Court has ruled that the ground of limitation, being a mixed question of law and fact, can never be a ground which would involve any “basic notions of morality or justice” for setting aside an arbitral award under Section 34 of the Arbitration and Conciliation Act, 1996. The petitioner, Thomas Cook, submitted before the High Court that …

Arbitral Award Directing Specific Performance Of Contract, Cannot Be Set Aside On Ground Of Inequitable Nature Of Contract: Madras High Court
2 years, 3 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 …

Arbitral Award With Contradictory Findings Is Liable To Be Set Aside: Calcutta High Court
2 years, 4 months ago

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

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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 …

Mere Erroneous Application Of Law; Award Need Not Be Set Aside: Bombay High Court
2 years, 4 months ago

Mere Erroneous Application Of Law; Award Need Not Be Set Aside: Bombay High Court

Live Law  

The Bombay High Court has reiterated that when the court is convinced that the Arbitrator has erred only on specific issues and that the arbitral award is otherwise sustainable, the court is not mandatorily required to set aside the entire award under Section 34 of the Arbitration and Conciliation Act, 1996. The Single Bench of Justice Manish Pitale ruled that …

Inordinate And Unexplained Delay In Rendering Arbitral Award Is Against Public Policy Of India: Delhi High Court
2 years, 8 months ago

Inordinate And Unexplained Delay In Rendering Arbitral Award Is Against Public Policy Of India: Delhi High Court

Live Law  

The Delhi High Court has ruled that inordinate and unexplained delay in rendering the arbitral award is in conflict with the public policy of India and is amenable to challenge under Section 34 of the Arbitration and Conciliation Act, 1996. The petitioner filed a petition under Section 34 of the A&C Act against the arbitral award before the Delhi High …

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 …

Limitation Period For Application To Set Aside Arbitral Award Begins From Date Of Disposal Of Application To Correct The Award: SC [Read Order]
6 years, 5 months ago

Limitation Period For Application To Set Aside Arbitral Award Begins From Date Of Disposal Of Application To Correct The Award: SC [Read Order]

Live Law  

‘Section 34 specifically speaks of the date on which a request under Section 33 has been “disposed of” by the Arbitral Tribunal. We are also of the view that a “disposal” of the application can be either by allowing it or dismissing it.’The Supreme Court has made it clear that the limitation period to make application to set aside arbitral …

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