While Deciding Petition U/S 9 Of Arbitration Act, Court Cannot Ignore Basic Principles Of CPC: Andhra Pradesh HC
2 days, 5 hours ago

While Deciding Petition U/S 9 Of Arbitration Act, Court Cannot Ignore Basic Principles Of CPC: Andhra Pradesh HC

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The Andhra Pradesh High Court bench of Justices Ninala Jayasurya and Nayapathy Vijay observed that in deciding a petition under Section 9 of the Arbitration Act, the Court cannot ignore the basic principles of the CPC. In exercise of its powers to grant interim relief under Section 9 of the Arbitration Act, the Court is not strictly bound by the provisions of the CPC. The court noted that in Essar House Private Limited v. Arcellor Mittal Nippon Steel India Limited, 2022 the Supreme Court held that “in deciding a petition under Section 9 of the Arbitration Act, the Court cannot ignore the basic principles of the CPC. If a strong prima facie case is made out and the balance of convenience is in favour of interim relief being granted, the Court exercising power under Section 9 of the Arbitration Act should not withhold relief on the mere technicality of absence of averments, incorporating the grounds for attachment before judgment under Order 38 Rule 5 of the CPC.” The court noted that the Supreme Court while taking a contrary view in Sanghi Industries Limited, 2022 held that unless and until the pre-conditions under Order 38 Rule 5 CPC are specified and unless there are specific allegations with cogent material and unless prima facie case, the Court is satisfied that the Appellant is likely to defeat the decree/Award, the interim order under Section 9 of the Arbitration Act may not be passed. In Adhunik Steels Ltd. v. Orissa Manganese and Minerals Ltd.,2007 the Supreme Court held that “the grant of an interim prohibitory injunction or an interim mandatory injunction are governed by well-known rules and it is difficult to imagine that the legislature while enacting Section 9 of the Act intended to make a provision which was dehors the accepted principles that governed the grant of an interim injunction.” While applying the above ratio to the facts of the present case, the court observed that the first principle for grant of interim order of attachment i.e pleadings is established, the next question would be to see if the procedure is adhered to before ordering attachment.

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History of this topic

Order 23 Rule 2 CPC| Limitation For Suit Instituted Afresh Applies As If Earlier Suit Was Never Filed: Jharkhand High Court
2 weeks, 4 days ago

Order 23 Rule 2 CPC| Limitation For Suit Instituted Afresh Applies As If Earlier Suit Was Never Filed: Jharkhand High Court

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The Jharkhand High Court has under Order 23 Rule 2 of the Civil Procedure Code, the limitation period for a fresh suit instituted with court permission applies as if the original suit had never been filed. Order 23 CPC pertains to withdrawal and adjustment of suits wherein Rule 2 states that in any fresh suit instituted on permission granted under …

Arbitration Weekly Round-Up [25th November To 1st December, 2024]
1 month ago

Arbitration Weekly Round-Up [25th November To 1st December, 2024]

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Supreme Court S.29A Arbitration | 'Sufficient Cause' To Extend Time For Award Should Be Interpreted To Facilitate Effective Dispute Resolution : Supreme Court Case Title: M/S AJAY PROTECH PVT. 34078 of 2023 The Bombay High Court bench of Justice Arif S. Doctor has held that Section 9 of the A&C Act is not the correct mechanism to obtain relief against …

Court Has Power To Grant Anti-Enforcement Injunction Against Proceedings In Foreign Court Which Threaten Arbitral Process Initiated In India: Delhi High Court
4 months, 2 weeks ago

Court Has Power To Grant Anti-Enforcement Injunction Against Proceedings In Foreign Court Which Threaten Arbitral Process Initiated In India: Delhi High Court

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The Delhi High Court bench of Justice C. Hari Shankar has held that when proceedings in a foreign court, or a decree issued by a foreign court, threaten the arbitral process that may be initiated in India, the court has the authority under Section 9 of the Arbitration Act to restrain the party from continuing with the foreign proceedings or …

[Section 9-A CPC] Trial Court Cannot Frame Issue Which Only Disposes Of The Suit In-Part: Bombay High Court
5 months, 2 weeks ago

[Section 9-A CPC] Trial Court Cannot Frame Issue Which Only Disposes Of The Suit In-Part: Bombay High Court

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The Bombay High Court has held that under Section 9-A CPC Act, 2018), a Trial Court cannot frame an issue which has the effect of disposing of the suit only in part. The petitioners/plaintiffs challenged the order of the Trial Court in allowing the application of respondents/defendants to frame a preliminary issue of limitation under Section 9-A CPC in the …

Arbitration Weekly Round-up: 1st April to 7th April 2024
8 months, 4 weeks ago

Arbitration Weekly Round-up: 1st April to 7th April 2024

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High Courts Allahabad High Court Allahabad High Court Directs Inquiry Against Officers Who Failed To File Arbitration Appeals Within Prescribed Limitation Case Title: Executive Engineer Drainage Division v. Ms Ayush Construction And Another The Allahabad High Court has directed Principal Secretary/Additional Chief Secretary, Irrigation, Uttar Pradesh to conduct an inquiry against officers who were responsible for filing appeals under Section …

Section 8 Of A& C Act Is Compiled On Filing Application Under O. 7 Rule 11, Informing About Arbitration Clause: Telangana High Court
10 months, 3 weeks ago

Section 8 Of A& C Act Is Compiled On Filing Application Under O. 7 Rule 11, Informing About Arbitration Clause: Telangana High Court

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The Telangana High Court single bench of Justice Alok Aradhe held that the requirement under Section 8 of the Arbitration and Conciliation Act, 1996 to inform the court regarding the existence of an arbitration clause is fulfilled when a party files an application for rejection of plaint under Order VII Rule 11 of the Code of Civil Procedure, 1908 in …

Calcutta High Court Annual Arbitration Law Digest 2023
11 months, 3 weeks ago

Calcutta High Court Annual Arbitration Law Digest 2023

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Order Of Emergency Arbitrator In Foreign Seated Arbitration, Can Be Considered While Dealing With Section 9 Application: Calcutta High CourtCase Title: Uphealth Holdings Inc versus Glocal Healthcare Systems Pvt. Pendency Of Conciliation Proceedings Before Facilitation Council Under MSMED Act Doesn't Debar The Court From Appointing Arbitrator Under S. 11 Of Arbitration Act: Calcutta High Court Case Title: Essar Oil and …

Top 10 Arbitration Judgments [January To September 2023]
1 year, 3 months ago

Top 10 Arbitration Judgments [January To September 2023]

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In recent times, several noteworthy judgments have been rendered by the Indian Courts in matters relating to the law of arbitration in India. Prior to the 2019 amendment, Section 34 of the Arbitration Act read that "an arbitral award could be set aside by the Court only if the the party making the application furnishes proof…". In conclusion, the Supreme …

Court Has Power To Issue Time Bound Directions To Collector Of Stamps To Decide On Unstamped Arbitration Agreements, Purpose Of Section 11(13) Of A&C Act Should Not Be Defeated: Delhi High Court
1 year, 4 months ago

Court Has Power To Issue Time Bound Directions To Collector Of Stamps To Decide On Unstamped Arbitration Agreements, Purpose Of Section 11(13) Of A&C Act Should Not Be Defeated: Delhi High Court

Live Law  

The Delhi High Court has held the Court exercising power under Section 11 of the A&C Act has the power to issue time bound directions to Collector of Stamps to decide on unstamped arbitration agreements to ensure that the mandate of Section 11 of the A&C Act that provides for expeditious disposal of Section 11 petition should not be defeated. …

Order Passed Under Section 11 Of The Arbitration And Conciliation Act Cannot Be Reviewed: Calcutta High Court
1 year, 10 months ago

Order Passed Under Section 11 Of The Arbitration And Conciliation Act Cannot Be Reviewed: Calcutta High Court

Live Law  

The High Court of Calcutta that the A&C Act is a complete code in itself and it does not contain any provision for the review of an order passed under Section 11 of the Act. The Bench of Justice Shekhar B. Saraf held that power of review is a creature of statute and unlike the Supreme Court which has inherent …

Arbitral Tribunals Exercising Power U/S 17 Not Strictly Bound By CPC: Calcutta High Court
2 years ago

Arbitral Tribunals Exercising Power U/S 17 Not Strictly Bound By CPC: Calcutta High Court

Live Law  

The Calcutta High Court has held that the arbitral tribunals while exercising powers under Section 17 of the A&C Act are not strictly bound by the technicalities of CPC. The bench of Justice Shekhar B. Saraf has extended the reasoning adopted by the Apex Court, in Essar House Private Limited v. Arcellor Mittal Nippon Steel India Limited, 2022 LiveLaw 765 …

Arbitration Cases Weekly Round-Up: 2 October To 8 October, 2022
2 years, 2 months ago

Arbitration Cases Weekly Round-Up: 2 October To 8 October, 2022

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Supreme Court: Arbitral Tribunal Must Give Reasons For Fixing Interest Rate; Award Holder Not Entitled To Interest For Delay Caused By It : Supreme Court Case Title: Executive Engineer versus Gokul Chandra Kanungo The Supreme Court recently held that a case where the award holder was responsible for delaying the proceedings which led to a huge lapse of time would …

Arbitration Clause, Effect Of Novation; Can't Be Decided Under Section 11 Of A&C Act: Karnataka High Court
2 years, 3 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 …

Court Exercising Power U/Sec 9 Arbitration Act Not Strictly Bound By CPC ; Should Not Withhold Interim Relief On Mere Technicality: Supreme Court
2 years, 3 months ago

Court Exercising Power U/Sec 9 Arbitration Act Not Strictly Bound By CPC ; Should Not Withhold Interim Relief On Mere Technicality: Supreme Court

Live Law  

The Supreme Court observed that a court exercising power under Section 9 of the Arbitration and Conciliation Act is not strictly bound by provisions of CPC and should not withhold relief on the mere technicality.Proof of actual attempts to deal with, remove or dispose of the property with a view to defeat or delay the realisation of an impending Arbitral …

Presence Of An Arbitration Clause Does Not Always Oust Court's Jurisdiction Under Article 226: J&K&L High Court
2 years, 3 months ago

Presence Of An Arbitration Clause Does Not Always Oust Court's Jurisdiction Under Article 226: J&K&L High Court

Live Law  

The Jammu and Kashmir and Ladakh High Court recently ruled that writs under Article 226 are maintainable for asserting contractual rights against the State or its instrumentalities and the presence of Arbitration clause does not oust the jurisdiction under Article 226 in all cases though it still needs to be decided from case to case as to whether recourse to …

Constitution Of Arbitral Tribunal Does Not Restrict Application For Interim Relief If "Entertained" By The Court : Karnataka High Court Reiterates The Law
2 years, 5 months ago

Constitution Of Arbitral Tribunal Does Not Restrict Application For Interim Relief If "Entertained" By The Court : Karnataka High Court Reiterates The Law

Live Law  

The Karnataka High Court has ruled that the restriction contained under Section 9 of the Arbitration and Conciliation Act, 1996 would not apply once an application under Section 9 for interim measures has been "entertained" by the Court before the appointment of the arbitrator. The High Court observed that the application filed under Section 9 of the A&C Act was …

Non Applicability Of Section 9 Of The A&C Act Can't Be Presumed If Parties Opted For Foreign-Seated Institutional Arbitration: Delhi High Court
2 years, 5 months ago

Non Applicability Of Section 9 Of The A&C Act Can't Be Presumed If Parties Opted For Foreign-Seated Institutional Arbitration: Delhi High Court

Live Law  

The High Court of Delhi has held that merely because the parties have chosen a foreign-seated institutional arbitration under the UNCITRAL Law, they cannot be presumed to have entered into an agreement to exclude the applicability of Section 9 of the A&C Act as provided under the proviso to Section 2 of the A&C Act. Objection regarding the maintainability of …

Once The Right To Refer The Dispute To Arbitration Is Waived By A Party, It Cannot Be Reclaimed: Karnataka High Court
2 years, 5 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 …

Monthly Digest Of Arbitration Cases : May 2022
2 years, 7 months ago

Monthly Digest Of Arbitration Cases : May 2022

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Supreme Court "Group Of Companies" Doctrine Needs Relook,Says Supreme Court; Refers Issues To Larger Bench Case Title: Cox and Kings Limited versus SAP India Private Limited and Anr. The Single Bench of Justice Ravi Krishan Kapur held that the security directed to be deposited by a Court under Section 36 of the A&C Act should be real and realisable, and …

Order 7 Rule 11 CPC | Power Of Rejection Of Plaint Mandatory, Can Be Exercised At Any Stage Before Conclusion Of Trial: Punjab & Haryana High Court
2 years, 8 months ago

Order 7 Rule 11 CPC | Power Of Rejection Of Plaint Mandatory, Can Be Exercised At Any Stage Before Conclusion Of Trial: Punjab & Haryana High Court

Live Law  

The Punjab and Haryana High Court has held that powers of the Court conferred under Order 7 Rule 11 of CPC are mandatory in nature and can be exercised at any stage of the suit, but before the conclusion of the trial.The observation was made while dealing with two revision petitions filed under Article 227 of the Constitution, challenging an …

Courts Must Be Conscious Of Power Of Arbitral Tribunal While Exercising Discretion Under Section 9 Of The Arbitration Act: Gujarat High Court
2 years, 11 months ago

Courts Must Be Conscious Of Power Of Arbitral Tribunal While Exercising Discretion Under Section 9 Of The Arbitration Act: Gujarat High Court

Live Law  

Section 9 of the Arbitration Act envisages 'interim measures' and the Courts must not adjudicate a substantive issue at this stage, the Gujarat High Court has observed today. Thus, the two primary issues which were raised before the High Court were: whether the Commercial Court, in exercise of its power under Section 9 of the Arbitration Act, could have directed …

Statutory Remedy Against Appointment Of Arbitrator Lies Under Arbitration Act, Can't Invoke Extraordinary Jurisdiction Under Art. 226: Gujarat HC
2 years, 11 months 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 …

Arbitration: Court Reckoner - July 2020
4 years, 4 months ago

Arbitration: Court Reckoner - July 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 July 2020 under the Arbitration & Conciliation Act, 1996. v Bajaj Finance Ltd., High Court of Delhi while dealing with a petition seeking restraint on sale of pledged shares on the ground that the fall in …

Sec 29A Arbitration Act :Power To Appoint Governs Power To Extend?
4 years, 7 months ago

Sec 29A Arbitration Act :Power To Appoint Governs Power To Extend?

Live Law  

The Arbitration & Conciliation Act, 2015 ushered in several sweeping changes in the Arbitration & Conciliation Act, 1996 with the laudable objective to make arbitration a preferred mode of dispute resolution of commercial disputes by seeking to make it efficacious, expeditious and cost effective. This question emerged as while the word used in S. 29A is 'Court', which would then …

Arbitration Clause In An Insufficiently Stamped Agreement Cannot Be Acted Upon By Court: SC [Read Judgment]
4 years, 10 months ago

Arbitration Clause In An Insufficiently Stamped Agreement Cannot Be Acted Upon By Court: SC [Read Judgment]

Live Law  

The Supreme Court has observed that an arbitration clause in an agreement which is required to be duly stamped, was not sufficiently stamped, cannot be acted upon by the Court. In this case, one of the parties to the agreement filed a petition under Section 11 of the Arbitration Act before the High Court of Karnataka.The other party, entered appearance …

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