Pendency Of Civil Or Criminal Litigation Between Partners Cannot Estop Either Partner From Invoking Arbitration Clause: Punjab and Haryana HC
1 day, 4 hours ago

Pendency Of Civil Or Criminal Litigation Between Partners Cannot Estop Either Partner From Invoking Arbitration Clause: Punjab and Haryana HC

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The Punjab and Haryana High Court bench of Justice Suvir Sehgal has held that pendency of a civil and criminal litigation inter se partners, cannot estop one of the partners from invoking the arbitration clause or bar the reference of dispute for adjudication to an arbitrator for determination. It was also argued that petitioner responded by sending a reply dated 29.04.2022, and as disputes arose between the parties, he served a legal notice dated 08.05.2022, invoking the arbitration clause. Vide communication dated 11.05.2022, respondent stated that the arbitration clause cannot be invoked as the partnership firm stands dissolved. It was further held that the dispute relating to the accounts of a partnership firm is a dispute, which touches the affairs of the firm and is clearly referable to an Arbitrator and the parties cannot be compelled to take a recourse to the civil courts.” The court concluded that pendency of a civil and criminal litigation inter se partners, cannot estop one of the partners from invoking the arbitration clause or bar the reference of dispute for adjudication to an arbitrator for determination.

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History of this topic

Substantive Objections On Validity Or Existence Of Arbitration Agreement Can Be Adjudicated By Tribunal U/S 16 Of Act: Bombay HC
5 days, 1 hour ago

Substantive Objections On Validity Or Existence Of Arbitration Agreement Can Be Adjudicated By Tribunal U/S 16 Of Act: Bombay HC

Live Law  

The Bombay High Court bench of Justice Somasekhar Sundaresan has held that substantive objections concerning the validity and existence of an arbitration agreement can be adjudicated by the Arbitral Tribunal and not by the court under section 11 of the Arbitration Act. In doing so, the Arbitral Tribunal may also rule on any objections with respect to the existence or …

Arbitrator Empowered To Pass Order For Dissolution Of Partnership Firm Once Dispute Is Referred: Madhya Pradesh HC
5 days, 23 hours ago

Arbitrator Empowered To Pass Order For Dissolution Of Partnership Firm Once Dispute Is Referred: Madhya Pradesh HC

Live Law  

The Madhya Pradesh High Court bench of Justice Subodh Abhyankar has held that the Arbitrator is empowered to pass an order for dissolution of the partnership firm once the matter is referred. 1 and 2 submitted that the non-applicant No.3 has taken various grounds for not entertaining the present application, including that of, i) the locus of the applicant, and …

Whether Agreement To Submit To Jurisdiction Of One Court Impliedly Ousts Jurisdiction Of All Other Courts? Punjab & Haryana HC Answers
1 week, 1 day ago

Whether Agreement To Submit To Jurisdiction Of One Court Impliedly Ousts Jurisdiction Of All Other Courts? Punjab & Haryana HC Answers

Live Law  

The Punjab and Haryana High Court has made it clear that a party cannot invoke the alternative jurisdiction in a dispute once they have decided the territorial jurisdiction by way of entering into a valid contract. The bench of Justice Sureshwar Thakur and Justice Sudeepti Sharma said if the contract is validly executed wherein the parties have consensually conferred the …

Mere Existence Of Arbitration Clause In Agreement Does Not Automatically Bar Jurisdiction Of Civil Court: Gujarat High Court
1 month ago

Mere Existence Of Arbitration Clause In Agreement Does Not Automatically Bar Jurisdiction Of Civil Court: Gujarat High Court

Live Law  

The Gujarat High Court bench of Justice Divyesh A. Joshi has held that mere existence of arbitration clause in the agreement does not bar jurisdiction of the civil court automatically. Courts generally construe the provisions strictly when jurisdiction of the civil courts is claimed to be excluded.” It further observed that in ITI Ltd. vs. Siemens Public Communications Network Ltd.,, …

Whether Arbitration Agreement Has All Essential Elements Can Better Be Decided By Tribunal U/S 16 Of A&C Act: Rajasthan High Court
1 month ago

Whether Arbitration Agreement Has All Essential Elements Can Better Be Decided By Tribunal U/S 16 Of A&C Act: Rajasthan High Court

Live Law  

The Rajasthan High Court bench of Justice Sudesh Bansal has held that the issue of validity of arbitration agreement more particularly in respect of having essential elements of the arbitration agreement, can better be considered and decided on merits by the arbitration tribunal under section 16 of the Arbitration Act. They also submitted that Clause 22 of the NIB cannot …

Referral Court U/S 11 Of Arbitration Act Cannot Enter Into Merits Of Subject Matter Of Disputes: Rajasthan High Court
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1 month ago

Referral Court U/S 11 Of Arbitration Act Cannot Enter Into Merits Of Subject Matter Of Disputes: Rajasthan High Court

Live Law  

The Rajasthan High Court bench of Justice Sudesh Bansal has held that the court under section 11 of the Arbitration Act cannot enter into merits of subject matter of the disputes. It submitted that since the disputes/ differences have arisen between the parties, due to noncompliance of the collaboration agreement, which are arbitral in nature and an arbitration agreement incorporated …

Petition U/S 11 Of Arbitration Act Cannot Be Entertained After Lapse Of 3 Yrs From Date Of Cause Of Action Arising: J&K High Court
1 month ago

Petition U/S 11 Of Arbitration Act Cannot Be Entertained After Lapse Of 3 Yrs From Date Of Cause Of Action Arising: J&K High Court

Live Law  

The Jammu & Kashmir And Ladakh High Court bench of Justice Tashi Rabstan has held that the petition under section 11 of the Arbitration Act cannot be entertained after lapse of 3 years from the date of cause of action having arisen. In the present case, the cause of action to file the petition under Section 11 of the Act, …

Delhi HC Allows Invocation Of Arbitration Clause After 10 Yrs, Says That Scope Of S.11(6) Plea Is Limited To Ascertaining Existence Of Agreement
Trending News
1 month, 1 week ago

Delhi HC Allows Invocation Of Arbitration Clause After 10 Yrs, Says That Scope Of S.11(6) Plea Is Limited To Ascertaining Existence Of Agreement

Live Law  

The Delhi High Court Bench of Justice Sachin Datta has held that the scope of the present proceedings is confined to ascertaining the existence of the arbitration agreement. Observation of the court: The court held that the scope of the present proceedings is confined to ascertaining the existence of the arbitration agreement. Then, the court held that since the existence …

Referral Court Has Limited Role U/S 11 Of Arbitration Act To Verify Existence Of Arbitration Agreement: Rajasthan High Court
Trending News
1 month, 4 weeks ago

Referral Court Has Limited Role U/S 11 Of Arbitration Act To Verify Existence Of Arbitration Agreement: Rajasthan High Court

Live Law  

The Rajasthan High Court bench of Justice Sudesh Bansal affirmed that the scope of arbitration application, in view of Section 11 of the Arbitration Act, 1996 is confined and limited to the extent of examining the existence of arbitration agreement between the parties for resolution of dispute. Brief Facts Applicant has filed instant arbitration application under Section 11 of the …

Arbitration Weekly Round Up: 22nd April to 28th April 2024
8 months, 1 week ago

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

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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. …

Claims Related To Company Are Arbitrable Even Though It Is Non-Signatory To Arbitration Agreement, Delhi High Court Reinforces GOC Doctrine
11 months, 1 week ago

Claims Related To Company Are Arbitrable Even Though It Is Non-Signatory To Arbitration Agreement, Delhi High Court Reinforces GOC Doctrine

Live Law  

The Delhi High Court bench comprising Justice Pratibha M. Singh held that the disagreements related to the partners' business activities, whether conducted through the firm or the company, fall within the scope of arbitrable matters. Ltd. and held that common business ventures of the partners, whether conducted through the firm or the Company, fell within the purview of the arbitration …

Himachal Pradesh High Court Stays Arbitration Proceedings Commenced Without Fulfilling The Pre-Arbitration Condition Of Negotiation
1 year, 5 months ago

Himachal Pradesh High Court Stays Arbitration Proceedings Commenced Without Fulfilling The Pre-Arbitration Condition Of Negotiation

Live Law  

The Himachal Pradesh High Court has stayed the arbitration proceedings that were unilaterally commenced by a party without complying/fulfilling the pre-condition of negotiation as mandated by the terms of the agreement between the parties. The bench of Justice Tarlok Singh Chauhan observed that when the dispute resolution clause in the agreement mandates the parties to explore negotiation before resorting to …

Well Reasoned Interim Order Of Arbitral Tribunal, Courts Should Not Interfere Under Section 37 Of The A&C Act : Delhi HC
1 year, 5 months ago

Well Reasoned Interim Order Of Arbitral Tribunal, Courts Should Not Interfere Under Section 37 Of The A&C Act : Delhi HC

Live Law  

The High Court of Delhi has held that the Court under Section 37 of the A&C Act should not interfere with a reasoned order of the tribunal granting interim relief based on thorough examination of the matter. Accordingly, the Respondent No.1 invoked the dispute resolution clause and issued a notice for amicable settlement, however, upon the failure of the parties …

Arbitration Clause Extinguishes After Dissolution of Partnership; Gujarat High Court Rejects S.11 Petition
1 year, 8 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, …

Court May Decline To Refer Parties To Arbitration If Dispute Doesn’t Correlate To Arbitration Agreement: Delhi High Court Reiterates
1 year, 9 months ago

Court May Decline To Refer Parties To Arbitration If Dispute Doesn’t Correlate To Arbitration Agreement: Delhi High Court Reiterates

Live Law  

The Delhi High Court has reiterated that mere existence of an arbitration agreement or arbitration clause would not be sufficient to refer the parties to arbitration and that even in the presence of an arbitration agreement, the court may decline to refer the parties to arbitration if the dispute does not correlate to the said agreement. The bench of Justice …

Arbitration Cases Monthly Round-Up: January 2023
1 year, 11 months ago

Arbitration Cases Monthly Round-Up: January 2023

Live Law  

Supreme Court: Starting Point Of Limitation U/ Section 34 Arbitration Act In Cases Of Suo Motu Correction Of Award: Supreme Court Explains Case Title: USS Alliance versus State of Uttar Pradesh The Supreme Court has observed that the starting point for the limitation under Section 34 Arbitration and Conciliation Act, in case of suo moto correction of the award, would …

Monthly Digest Of IBC Cases: December 2022
2 years ago

Monthly Digest Of IBC Cases: December 2022

Live Law  

Supreme Court Provisional Attachment Under PMLA Subsequent To Initiation Of CIRP: Supreme Court To Consider The Issue Case Title: Ashok Kumar Sarawagi v Enforcement Directorate & Anr. : Company Appeal No.1375 of 2022 The National Company Law Appellate Tribunal, Principal Bench, comprising of Justice Ashok Bhushan, Dr. Alok Srivastava and Mr. Barun Mitra, has held that the only question to …

Invoking CIRP Would Not Make The Dispute Non-Arbitrable : Delhi High Court
2 years ago

Invoking CIRP Would Not Make The Dispute Non-Arbitrable : Delhi High Court

Live Law  

The High Court of Delhi has held that the dispute would not become non-arbitrable merely because the petitioner, before filing the application for appointment of arbitrator, has filed a corporate insolvency application under Section 9 of the IBC. The Court held that when the respondent has constantly denied its liability to pay, the claimed amount does not transfer into an …

Arbitration Cases Weekly Round-Up: 27 November To 3 December, 2022
2 years, 1 month ago

Arbitration Cases Weekly Round-Up: 27 November To 3 December, 2022

Live Law  

Bombay High Court: Participation In Arbitral Proceedings, Does Not Disentitle Party To Challenge Award On Ground Of Unilateral Appointment Of Arbitrator: Bombay High Court Case Title: Naresh Kanayalal Rajwani & Ors. The Bombay High Court has ruled that merely because a party participated in the arbitration proceedings, it is not disentitled from challenging the arbitral award on the ground that …

Demystifying The Effect Of Insolvency Proceedings In India On Arbitrations
2 years, 3 months ago

Demystifying The Effect Of Insolvency Proceedings In India On Arbitrations

Live Law  

Globalization has been accompanied by cross-border commercial disputes and arbitration has become the default setting for adjudication both nationally and globally. This stage can induce the following situations: - First, when claims are brought against the corporate debtor, a stay on the arbitration proceedings, as per section 14 IBC will apply; Second, when claims are made by the corporate debtor, …

Would Subsequent Agreement Cover Past Transactions ? Arbitrator To Decide: Delhi High Court
2 years, 4 months ago

Would Subsequent Agreement Cover Past Transactions ? Arbitrator To Decide: Delhi High Court

Live Law  

The High Court of Delhi has held that while exercising jurisdiction under Section 11 of the A&C Act, the High Court cannot examine an issue as to whether the arbitration clause in a subsequent agreement would govern past transactions of similar nature as it requires detailed consideration of clauses and surrounding circumstances. The Court held that the petitioner has notified …

Arbitration Cases Weekly Round-Up: 4 September To 10 September, 2022
2 years, 4 months ago

Arbitration Cases Weekly Round-Up: 4 September To 10 September, 2022

Live Law  

Supreme Court: Arbitration Clause Has To Be Given Effect Even If It Does Not Expressly State That Decision Of Arbitrator Is Final & Binding On Parties: Supreme Court Case Title: Babanrao Rajaram Pund versus Samarth Builders & Developers Citation: 2022 LiveLaw 747 The Supreme Court observed that an arbitration clause has to be given effect even if it does not …

Existence Of Arbitration Agreement Can Be Presumed If No Denial Is Made In The Reply: Karnataka High Court
2 years, 4 months ago

Existence Of Arbitration Agreement Can Be Presumed If No Denial Is Made In The Reply: Karnataka High Court

Live Law  

The Karnataka High Court has held that the words "statements of claim and defence" under Section 7 of the A&C Act are to be given wider interpretation and reply to a notice of arbitration falls within the section. The respondent vide its reply dated 15.05.2020 denied its liability to pay any due amount to the petitioner, however, it did not …

There Cannot Be Two Arbitration Proceedings With Respect To Same Contract/Transaction: Supreme Court
2 years, 5 months ago

There Cannot Be Two Arbitration Proceedings With Respect To Same Contract/Transaction: Supreme Court

Live Law  

Observing that it is of the "firm opinion that there cannot be two arbitration proceedings with respect to the same contract/transaction", the Supreme Court stated that when a dispute has earlier been referred to arbitration and an award was passed on the claims made, then it is "rightful" to refuse to refer to arbitration- in exercise of Section 11 of …

Can't Maintain Proceedings U/S 34 Arbitration Act Before Two Fora: Gujarat High Court
2 years, 5 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 …

Arbitration Cases Weekly Round-Up: June 19 – June 25, 2022
2 years, 6 months ago

Arbitration Cases Weekly Round-Up: June 19 – June 25, 2022

Live Law  

Bombay High Court: Arbitral Proceedings Cannot Be Imposed On A Debenture Trustee Under A Scheme Of Compromise, In The Absence Of An Arbitration Agreement: Bombay High Court Case Title: HMG Industries Ltd. versus Canara Bank Citation: 2022 LiveLaw 224 The Bombay High Court has held that even though a Scheme of Compromise entered into under Section 391 of the Companies …

Mere Pendency Of A Civil Suit Is Not An Absolute Bar To A Petition Under Section 11 Of The A&C Act: Bombay High Court
2 years, 6 months ago

Mere Pendency Of A Civil Suit Is Not An Absolute Bar To A Petition Under Section 11 Of The A&C Act: Bombay High Court

Live Law  

The High Court of Bombay has held that mere pendency of a Civil Suit is not an absolute bar to a petition under Section 11 of the A&C Act as long as the petitioner can withdraw its suit before the defendant file its statement on the issue. The Contention Of The Parties The applicants sought the appointment of the arbitrator …

A Party Cannot Dispute The Jurisdiction On Account Of Non-Existence Of The Arbitration Agreement After Submitting Of The Jurisdiction Of The Arbitrator: Delhi High Court
2 years, 7 months ago

A Party Cannot Dispute The Jurisdiction On Account Of Non-Existence Of The Arbitration Agreement After Submitting Of The Jurisdiction Of The Arbitrator: Delhi High Court

Live Law  

The High Court of Delhi held that a party cannot dispute the jurisdiction on account of non-existence of the arbitration agreement after submitting to the jurisdiction of the arbitrator. Accordingly, the Court rejected the contention of the petitioner that the award is passed without jurisdiction since there was no arbitration agreement. The Court also referred to the Statement of Defence …

Supreme Court Quarterly Digest 2022- ARBITRATION (Jan - Mar)
2 years, 7 months ago

Supreme Court Quarterly Digest 2022- ARBITRATION (Jan - Mar)

Live Law  

Arbitration Act, 1940; Section 30, 33 - Scope of interference by courts - A Court does not sit in appeal over an Award passed by an Arbitrator and the only grounds on which it can be challenged are those that have been specified in Sections 30 and 33 of the Arbitration Act, namely, when there is an error on the …

Arbitration Cases Weekly Round-Up: 15th May to 21st May, 2022
2 years, 7 months ago

Arbitration Cases Weekly Round-Up: 15th May to 21st May, 2022

Live Law  

Bombay High Court: Novation Of Partnership Deed, Arbitration Clause Contained In The Deed Can Be Invoked: Bombay High Court Case Title: Praful A. Mehta versus Nainesh M. Gandhi The Bombay High Court has ruled that the allegation of forgery is required to be dealt with at the stage of trial before the Arbitrator. Calcutta High Court The Finding Of The …

Once Suit For Permanent Injunction Stood Decreed, Executing Court Cannot Render Said Decree Nugatory: Punjab And Haryana High Court
2 years, 8 months ago

Once Suit For Permanent Injunction Stood Decreed, Executing Court Cannot Render Said Decree Nugatory: Punjab And Haryana High Court

Live Law  

Punjab and Haryana High Court on April 18, 2022, while dealing with a civil revision petition under Article 227 of the Constitution of India for setting aside an order passed by the Trial Court, held that once a suit for the permanent injunction was decreed the same cannot be declared nugatory by the Executing Court stating that the petitioner ought …

Mere Use Of Word 'Arbitration' In Agreement Clause Heading Would Not Infer Existence Of Agreement Between Parties To Resolve Disputes Through Arbitration: Delhi HC
2 years, 9 months ago

Mere Use Of Word 'Arbitration' In Agreement Clause Heading Would Not Infer Existence Of Agreement Between Parties To Resolve Disputes Through Arbitration: Delhi HC

Live Law  

The Delhi High Court has observed that the mere use of word 'Arbitration' in the heading in the Clause of Agreement would not lead to the inference that there exists an agreement between such parties seeking resolution of disputes through arbitration.Justice Mukta Gupta referred to a 2014 decision of the Delhi High Court in Avant Garde Clean Room & Engg. …

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 …

Any Order Of Arbitral Tribunal In Course Of Arbitration Cannot Be Challenged By Way Of Writ Petition : Gujarat HC [Read Judgment]
4 years, 8 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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