Arbitration | Every Violation Of Statute Not Against Fundamental Public Policy Of India, Exception Has To Be Construed Narrowly: Bombay High Court
3 years, 1 month ago

Arbitration | Every Violation Of Statute Not Against Fundamental Public Policy Of India, Exception Has To Be Construed Narrowly: Bombay High Court

Live Law  

While enforcing a foreign arbitral award, the Bombay High Court has held that violation of a statute would not necessarily violate the fundamental policy of Indian law and the fundamental policy test must be applied according to the circumstances and facts of each case. Petitioner's contentions Dr. Chandrachud, Counsel for the petitioner contended that if a mere misinterpretation of substantive law would constitute a violation of the fundamental public policy of India, then there would be no difference between substantive law violation and violation of the fundamental policy of Indian law. Respondent's submissions Counsel for respondents argued that since the award granted the payment of purchase price of the helicopter under a terminated agreement, such award's enforcement would be contrary to the fundamental public policy of India. By referring to the judgments in Ssangyong Engineering & Construction Co. Ltd. v/s NHAI, it was also contended that the public policy of India encapsulated in S.34 and/or S.48 would now mean a fundamental policy of Indian law as explained by the apex court in Associate Builders v. Delhi Developmental Authority and Renusagar v. General Electric.

Law India Policy Court Public Policy Indian Violation Indian Law Fundamental High Respondent Public Award Respondents Petitioner Fundamental Public Policy  policy  high  narrowly  violation  fundamental  respondents  court  india  respondent  statute  public  exception  mr  petitioner  award  law

History of this topic

Arbitration Act | Appellate Courts Can't Reassess Awards, Must Limit Enquiry On Public Policy Breach : Supreme Court
1 month, 2 weeks ago

Arbitration Act | Appellate Courts Can't Reassess Awards, Must Limit Enquiry On Public Policy Breach : Supreme Court

Live Law  

The Supreme Court reaffirmed that arbitral awards should only be interfered with in cases of perversity, violation of public policy, or patent illegality. It emphasized that appellate courts cannot reassess the merits of awards and must limit their inquiry to whether the award breaches Section 34 of the Arbitration Act i.e., if the award is against the public policy of …

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

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

Himachal Pradesh High Court Reiterates Limited Scope Of Court Intervention U/S 34 & 37 Of Arbitration & Conciliation Act
3 months, 3 weeks ago

Himachal Pradesh High Court Reiterates Limited Scope Of Court Intervention U/S 34 & 37 Of Arbitration & Conciliation Act

Live Law  

The Himachal Pradesh High Court bench of Justice Virender Singh has reiterated that the scope of interference with arbitral awards under Sections 34 and 37 of the Arbitration and Conciliation Act, 1996, is narrow and not akin to appellate jurisdiction. Brief Facts: The Government of India, by a notification under Section 3 of the National Highways Act, 1956, acquired land …

Enforcement Of Foreign Award Cannot Be Refused U/S 48 Of Arbitration Act Unless It Is Against Public Policy: Chhattisgarh HC
4 months ago

Enforcement Of Foreign Award Cannot Be Refused U/S 48 Of Arbitration Act Unless It Is Against Public Policy: Chhattisgarh HC

Live Law  

The Chhattisgarh High Court bench of Justice Deepak Kumar Tiwari has held that enforcement of a foreign award cannot be refused under section 48 of the Arbitration Act unless it is shown that the award is against the public policy of India. Since the property of the respondent/judgment-debtor is located in the territory of the State of Chhattisgarh, both these …

India aims to be global arbitration hub. And cut costs for its biggest litigant.
7 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. …

Squelch Will Of Parties In Consumer Welfare Issues: Supreme Court Of India
7 months, 3 weeks ago

Squelch Will Of Parties In Consumer Welfare Issues: Supreme Court Of India

Live Law  

The Supreme Court, in M. Hemalatha Devi and Ors. The SC delved in deliberation regarding the conflict caused due to the interplay between the 1980 Act and arbitration proceedings in Fair Air Engineers Ltd. v. N. K. Modi, 6 SCC 385 wherein SC noted that, considering the purpose of the 1980 Act which is for relieving the consumer from the …

Chief Justice Or Their Designate Cannot Adjudicate Merits Of Dispute Under Section 11 Of Arbitration Act: Calcutta High Court
8 months, 2 weeks ago

Chief Justice Or Their Designate Cannot Adjudicate Merits Of Dispute Under Section 11 Of Arbitration Act: Calcutta High Court

Live Law  

The Calcutta High Court bench of Justice Sabyasachi Bhattacharyya has held that it is completely beyond the domain of the Chief Justice and/or his designate, sitting in jurisdiction under Section 11 of the Arbitration and Conciliation Act, 1996, to adjudicate even prima facie on the merits of an arguable issue involved in the matter, which would fall categorically within the …

Indian judiciary exercises prudence & restraint in interfering with arbitral awards: Justice Kohli
9 months, 1 week ago

Indian judiciary exercises prudence & restraint in interfering with arbitral awards: Justice Kohli

Hindustan Times  

New Delhi, The Indian judiciary exercises prudence and restraint in interfering with arbitral awards and judicial intervention on grounds of patent illegality or public policy ought to be an exceptional measure to be deployed sparingly, Supreme Court judge Justice Hima Kohli has said. Indian judiciary exercises prudence & restraint in interfering with arbitral awards: Justice Kohli {{^userSubscribed}} {{/userSubscribed}} {{^userSubscribed}} {{/userSubscribed}} …

Arbitration now preferred method for commercial justice: CJI Chandrachud
9 months, 1 week ago

Arbitration now preferred method for commercial justice: CJI Chandrachud

Hindustan Times  

Chief Justice of India Dhananjaya Y Chandrachud has underscored the pivotal role of arbitration in the realm of commercial justice, asserting that it is no longer an alternative but a preferred method of dispute resolution. Delivering his address at the Supreme Court of the United Kingdom on Thursday evening, the CJI highlighted the evolution of arbitration from a supplementary dispute …

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 …

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 …

A verdict that hampers international law obligations
1 year, 4 months ago

A verdict that hampers international law obligations

The Hindu  

One of the foremost challenges foreign investors face in India is the uncertainty in taxation measures. In other words, wherever possible, domestic law should be interpreted in a manner that does not contradict India’s obligations under international law. If India had issued a notification that expressly went against the MFN provision in some of the DTAAs, one could have plausibly …

Issue Of Non-Stamping Of Arbitration Agreement Not Raised Before The Arbitrator, Cannot Be Raised Subsequently Under Section 34 Or 37 Of The A&C Act: Bombay High Court
1 year, 4 months ago

Issue Of Non-Stamping Of Arbitration Agreement Not Raised Before The Arbitrator, Cannot Be Raised Subsequently Under Section 34 Or 37 Of The A&C Act: Bombay High Court

Live Law  

The High Court of Bombay has held that if the issue of non-stamping or insufficient stamping of the arbitration agreement is not raised before the arbitrator or on the first possible opportunity, then it cannot be raised subsequently under Section 34 or 37 of the A&C Act. The Court held that an appeal to challenge an arbitral award cannot be …

Arbitration | Awarding Claim For Loss Of Profit Without Substantial Evidence Is In Conflict With Public Policy Of India: Supreme Court
1 year, 4 months ago

Arbitration | Awarding Claim For Loss Of Profit Without Substantial Evidence Is In Conflict With Public Policy Of India: Supreme Court

Live Law  

Recently, the Supreme Court, while rendering an arbitral award as patently illegal and being in conflict with the “public policy of India”, held that a claim for damages cannot as a matter of course result in an arbitral award without proof of the claimant having suffered injury. It is elementary, though it has to be restated, that a judicial decision …

Non-Consideration Of Clause In Agreement: Can’t Say Opposed To Fundamental Policy Of Indian Law: Delhi High Court
1 year, 7 months ago

Non-Consideration Of Clause In Agreement: Can’t Say Opposed To Fundamental Policy Of Indian Law: Delhi High Court

Live Law  

The Delhi High Court has ruled that non-consideration of a clause of the Agreement executed between the parties, cannot be said to be an error made by the arbitral tribunal which is opposed to the fundamental policy of Indian law. Therefore, a mere failure of the arbitral tribunal to consider an argument on the same would not render the arbitral …

Intention Of Legislature Is To Limit The Interference By The Courts In The Process Of Arbitration: Delhi HC
1 year, 10 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 …

‘Limitation’ Doesn’t Involve Any “Basic Notions Of Morality Or Justice”, For Setting Aside Award : Bombay High Court
2 years, 2 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, 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 …

Arbitral Tribunal Cannot Apply Public Law Principles Or Article 14 Against Public Body : Bombay High Court
3 years, 9 months ago

Arbitral Tribunal Cannot Apply Public Law Principles Or Article 14 Against Public Body : Bombay High Court

Live Law  

While setting aside the arbitration award against the BCCI over the termination of Deccan Chargers from IPL, the Bombay High Court observed that an arbitral tribunal cannot apply public law principles on fairness and reasonableness.The arbitrator had held that BCCI, though not a state under Article 12 of the Constitution, was performing 'public functions' and hence had the public law …

Arbitration Court Reckoner : January 2021
4 years 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: September 2020
4 years, 4 months ago

Arbitration Court Reckoner: September 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 September 2020 under the Arbitration & Conciliation Act, 1996. Chaitanya Construction Company v Delhi Jal Board High Court of Delhi took note of the fact that S. 7 of the Act itself provides that the arbitration …

Arbitration Court Reckoner : August 2020
4 years, 6 months ago

Arbitration Court Reckoner : August 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 August 2020 under the Arbitration & Conciliation Act, 1996. Test of Emergent Necessity for grant of relief under S. 9 In Avantha Holdings Ltd. v Vistra ITC India Ltd. High Court of Delhi held that the …

Arbitration: Court Reckoner [June 2020]
4 years, 8 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 …

Judicial Review Of Arbitral Awards: Public Policy And Its Evolution Exploitation
6 years, 7 months ago

Judicial Review Of Arbitral Awards: Public Policy And Its Evolution Exploitation

Live Law  

A fundamental principle of arbitration is minimum judicial intervention, and this minimization is accomplished through non-substantive review of arbitral awards by national courts. In order to take a defence of public policy, “there is some element of illegality or that the enforcement of the award would be ‘clearly injurious to the public good or, possibly, that enforcement would be wholly …

India’s Reputation As ‘Arbitration-Unfriendly’ Jurisdiction: Panel Blames Interventionist Courts, Lack Of Govt Support [Read Report]
7 years, 7 months ago

India’s Reputation As ‘Arbitration-Unfriendly’ Jurisdiction: Panel Blames Interventionist Courts, Lack Of Govt Support [Read Report]

Live Law  

A high-level committee set up by the Centre to review institutionalisation of arbitration mechanism has found that judicial intervention and failure of the government and its agencies to use institutional arbitration has, among others, led to India’s reputation as an “arbitration-unfriendly” jurisdiction.The HLC, in its report, has suggested various reforms for promoting arbitration as. Despite the existence of numerous arbitral …

India’s Reputation As ‘Arbitration-Unfriendly’ Jurisdiction: Panel Blames Interventionist Courts, Lack Of Govt Support [Read Report]
7 years, 7 months ago

India’s Reputation As ‘Arbitration-Unfriendly’ Jurisdiction: Panel Blames Interventionist Courts, Lack Of Govt Support [Read Report]

Live Law  

A high-level committee set up by the Centre to review institutionalisation of arbitration mechanism has found that judicial intervention and failure of the government and its agencies to use institutional arbitration has, among others, led to India’s reputation as an “arbitration-unfriendly” jurisdiction.The HLC, in its report, has suggested various reforms for promoting arbitration as. Despite the existence of numerous arbitral …

India Gearing Up For A Healthy And Conducive Arbitration Environment
8 years ago

India Gearing Up For A Healthy And Conducive Arbitration Environment

Live Law  

Supreme Court Upholds "Neutrality Of Arbitrator" In Public Sector Contracts In the recent judgment of M/s. Voestalpine Schienen Gmbh vs. Delhi Metro Rail Corporation Ltd., the Supreme Court of India while upholding the concept of 'neutrality of arbitrators' envisaged under the amended Section 12 of the Arbitration and Conciliation Act 1996, has given. Voestalpine Schienen Gmbh vs. Delhi Metro Rail …

India Gearing Up For A Healthy And Conducive Arbitration Environment
8 years ago

India Gearing Up For A Healthy And Conducive Arbitration Environment

Live Law  

Supreme Court Upholds "Neutrality Of Arbitrator" In Public Sector Contracts In the recent judgment of M/s. Voestalpine Schienen Gmbh vs. Delhi Metro Rail Corporation Ltd., the Supreme Court of India while upholding the concept of 'neutrality of arbitrators' envisaged under the amended Section 12 of the Arbitration and Conciliation Act 1996, has given. Voestalpine Schienen Gmbh vs. Delhi Metro Rail …

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