A Party Is Not Entitled To Invoke The Arbitration Clause After Signing The Discharge Voucher Without Any Protest Or Demur: Gujarat High Court
2 years, 9 months ago

A Party Is Not Entitled To Invoke The Arbitration Clause After Signing The Discharge Voucher Without Any Protest Or Demur: Gujarat High Court

Live Law  

The Gujarat High Court has ruled that a party is not entitled to invoke the arbitration clause after it had signed the discharge voucher without any protest or demur, since no arbitrable dispute could be said to subsist. The Court observed that the petitioner had executed a discharge voucher at the time of receiving the said amount under the insurance policy. The Court noted that even before receiving the said amount, the petitioner had issued a consent letter wherein it had settled the claim raised by it for the said amount without any demur. Hence, the Court ruled that the petitioner was not entitled to invoke the arbitration clause since no arbitrable dispute subsisted after the petitioner signed the discharge voucher without any protest or demur. The Court observed that the Supreme Court in the case of United India Insurance Company versus Antique Art Exports Private Limited had ruled that where a dispute raised by the claimant with regard to the validity of the discharge voucher, no claim certificate or settlement agreement, prima facie, appears to be lacking in credibility, the dispute need not be referred to arbitration.

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History of this topic

Arbitration Clause In Invoices Can Be Binding On Parties When They Acted Upon The Invoices And No Objections Were Raised: Bombay HC
1 week, 4 days ago

Arbitration Clause In Invoices Can Be Binding On Parties When They Acted Upon The Invoices And No Objections Were Raised: Bombay HC

Live Law  

The Bombay High Court bench of Justice Somasekhar Sundaresan has observed that where the correspondence between the parties included invoices which contained an arbitration clause and the parties acted upon those invoices without protesting, then it could be deemed that the party had accepted the arbitration clause. Contentions The Counsel for the Petitioner submitted that the arbitration agreement is contained …

Party Can Waive Arbitrator's Ineligibility U/S 12(5) Of Arbitration Act By Express Agreement In Writing: Bombay High Court
4 months, 1 week ago

Party Can Waive Arbitrator's Ineligibility U/S 12(5) Of Arbitration Act By Express Agreement In Writing: Bombay High Court

Live Law  

The Bombay High Court bench of Justice Rajesh S. Patil affirmed that once an ineligibility to act as Arbitrator is waived by an express agreement in writing under proviso to section 12 of the Arbitration Act, waiving party is prohibited from claiming ineligibility of the Arbitrator for the first time under section 34 of the Arbitration Act. Brief Facts The …

Arbitrator's Finding Based On Proper Appreciation And Interpretation Of Prevalent Conditions: Gujarat High Court Dismisses Section 37 Appeal
11 months, 3 weeks ago

Arbitrator's Finding Based On Proper Appreciation And Interpretation Of Prevalent Conditions: Gujarat High Court Dismisses Section 37 Appeal

Live Law  

The Gujarat High Court division bench of Chief Justice Sunita Agarwal and Justice Aniruddha P Mayee dismissed appeal under Section 37 of the Arbitration and Conciliation Act, 1996 noting that arbitrator's finding was based upon the proper appreciation and interpretation of the prevalent conditions and the site inspection along with the documents on record. While the Arbitrator allowed only three …

Insurance Policy Is To Be Referred To Arbitration When Only One Head Of The Claims Is Disputed And Not The Entire Liability: Delhi High Court
1 year, 9 months ago

Insurance Policy Is To Be Referred To Arbitration When Only One Head Of The Claims Is Disputed And Not The Entire Liability: Delhi High Court

Live Law  

The High Court of Delhi has held that ordinarily the dispute under insurance policy claims would not be referred to arbitration when the reference is limited to quantum of compensation and the insurer disputes liability. The Court held that there cannot be any arbitration in the first scenario, however, the second issue would not put the dispute beyond the ambit …

Arbitration Clause Extinguishes After Dissolution of Partnership; Gujarat High Court Rejects S.11 Petition
1 year, 10 months ago

Arbitration Clause Extinguishes After Dissolution of Partnership; Gujarat High Court Rejects S.11 Petition

Live Law  

The Gujarat High Court has ruled that once the partnership at will is dissolved, the arbitration clause contained in the partnership deed cannot be invoked to refer the dispute between the partners to arbitration. The court held that the term “dealing” would mean engaging in business and thus, for the dispute to fall within the ambit of the arbitration clause, …

Arbitration: Supreme Court Upholds Rejection Of S. 8 Application Since Cause Of Action Went Beyond Transaction Containing Arbitration Agreement
1 year, 10 months ago

Arbitration: Supreme Court Upholds Rejection Of S. 8 Application Since Cause Of Action Went Beyond Transaction Containing Arbitration Agreement

Live Law  

The Supreme Court has upheld the decision of the Gujarat High Court where it had upheld the rejection of an application filed under Section 8 of the Arbitration and Conciliation Act, 1996 in a commercial civil suit, noting that the cause of action of the suit went beyond the transaction containing the arbitration agreement. Referring to the facts of the …

Mere Reference To Proposal Containing An Arbitration Clause, Unilaterally Signed By One Party, Would Not Amount To An Arbitration Agreement: Bombay High Court
2 years, 6 months ago

Mere Reference To Proposal Containing An Arbitration Clause, Unilaterally Signed By One Party, Would Not Amount To An Arbitration Agreement: Bombay High Court

Live Law  

The Bombay High Court has ruled that in an agreement executed by both the parties which contains independent terms and conditions, a mere reference to a proposal containing an arbitration clause which was unilaterally signed by one party, would not amount to an arbitration agreement coming into existence between the parties. The petitioner argued that the said proposal containing an …

Arbitration Clause, Effect Of Novation; Can't Be Decided Under Section 11 Of A&C Act: Karnataka High Court
2 years, 6 months ago

Arbitration Clause, Effect Of Novation; Can't Be Decided Under Section 11 Of A&C Act: Karnataka High Court

Live Law  

The Karnataka High Court has ruled that the issue whether an agreement containing an arbitration clause stood novated with the execution of a second agreement and thus, the arbitration agreement between the parties was not subsisting, cannot be decided at the stage of reference to arbitration under Section 11 of the Arbitration and Conciliation Act, 1996, since it involves a …

Arbitration Clause Can Be Invoked Against Disputes Under Another Agreement, If Both Agreements Form One Composite Transaction: Karnataka High Court
2 years, 7 months ago

Arbitration Clause Can Be Invoked Against Disputes Under Another Agreement, If Both Agreements Form One Composite Transaction: Karnataka High Court

Live Law  

The Karnataka High Court has ruled that a party can invoke the Arbitration Clause contained in an agreement with respect to the disputes arising with a third party under another agreement, if both the agreements refer to each other and form one composite transaction. The petitioner M/s Bestpay Solutions Private Limited submitted before the High Court that the respondent in …

Can't Maintain Proceedings U/S 34 Arbitration Act Before Two Fora: Gujarat High Court
2 years, 8 months ago

Can't Maintain Proceedings U/S 34 Arbitration Act Before Two Fora: Gujarat High Court

Live Law  

The Gujarat High Court, while dismissing the Civil Application of the Petitioner which challenged the award of the relevant arbitration, has observed that the Petitioner had 'conveniently' initiated two proceedings- one before the instant Bench and another before the District Court under Sec 34. The brief facts of the case were that the Petitioner had challenged the order of the …

Once The Right To Refer The Dispute To Arbitration Is Waived By A Party, It Cannot Be Reclaimed: Karnataka High Court
2 years, 8 months ago

Once The Right To Refer The Dispute To Arbitration Is Waived By A Party, It Cannot Be Reclaimed: Karnataka High Court

Live Law  

The Karnataka High Court has ruled that if a party has disputed the arbitrability of a dispute raised by the opposite party, in its reply to the notice invoking the arbitration clause, it is deemed to have waived its right to seek the reference of the dispute to arbitration. The petitioner submitted before the Commercial Court that the respondent had …

A Party Cannot Circumvent The Dispute Resolution Process After Agreeing On The Same: Gujarat High Court
2 years, 9 months ago

A Party Cannot Circumvent The Dispute Resolution Process After Agreeing On The Same: Gujarat High Court

Live Law  

The Gujarat High Court has held that a party cannot circumvent the dispute resolution process after agreeing on the same. The Court held that party is bound to follow the mechanism provided under the arbitration clause that requires it to first raise the dispute before the DRC and pre-deposit the amount in dispute if no challenge is made to the …

Statutory Remedy Against Appointment Of Arbitrator Lies Under Arbitration Act, Can't Invoke Extraordinary Jurisdiction Under Art. 226: Gujarat HC
3 years, 1 month ago

Statutory Remedy Against Appointment Of Arbitrator Lies Under Arbitration Act, Can't Invoke Extraordinary Jurisdiction Under Art. 226: Gujarat HC

Live Law  

If an Act prescribes a mechanism to address certain grievances and the petitioner is ignorant of such statutory mechanism or chooses not to avail them and straightaway invokes High Court's extraordinary jurisdiction under A.226 of the Constitution, then exercising such jurisdiction for the same is not in the fitness of things, Gujarat high Court has held. In a writ petition …

Any Order Of Arbitral Tribunal In Course Of Arbitration Cannot Be Challenged By Way Of Writ Petition : Gujarat HC [Read Judgment]
4 years, 10 months ago

Any Order Of Arbitral Tribunal In Course Of Arbitration Cannot Be Challenged By Way Of Writ Petition : Gujarat HC [Read Judgment]

Live Law  

The Gujarat High Court in a judgment delivered last week again considered whether any order passed during pendency of arbitration proceedings under the Act­ of 1996 can be challenged by certiorari under Articles 226 and 227 of the Constitution of India or not. "Considering the policy, objects and the provisions of the Arbitration Act of 1996, an order passed during …

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