Legality and Validity of substantive contract cannot be enquired under Section 8/Section 45 of Arbitration and Conciliation Act, 1996 [Read Judgment]
8 years, 7 months ago

Legality and Validity of substantive contract cannot be enquired under Section 8/Section 45 of Arbitration and Conciliation Act, 1996 [Read Judgment]

Live Law  

The scope of enquiry under the Section 45 is confined only to the question whether the arbitration agreement is “null and void, inoperative or incapable of being performed”, the Court observed.The Apex Court in Sasan Power Limited vs. North American Coal Corporation India Private Limited, has held that the scope of enquiry under the Section 8 and Section 45 of the Arbitration and. The scope of enquiry under the Section 45 is confined only to the question whether the arbitration agreement is “null and void, inoperative or incapable of being performed”, the Court observed. The Apex Court in Sasan Power Limited vs. North American Coal Corporation India Private Limited, has held that the scope of enquiry under the Section 8 and Section 45 of the Arbitration and Conciliation Act, 1996, is confined only to the question whether the arbitration agreement is “null and void, inoperative or incapable of being performed” but not the legality and validity of the substantive contract. Arbitration agreement/clause is not that governs rights and obligations arising out of the substantive contract: It only governs the way of settling disputes between the parties.” SCOPE OF ENQUIRY LIMITED TO ARBITRATION AGREEMENT, NOT SUBSTANTIVE CONTRACT The Court held: “The scope of enquiry under the Section 45 is confined only to the question whether the arbitration agreement is “null and void, inoperative or incapable of being performed” but not the legality and validity of the substantive contract… All that we hold is that the scope of enquiry under the Section 45 does not extend to the examination of the legality of the substantive contract.

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History of this topic

Arbitration | Dispute Regarding Full & Final Settlement Of Contract Is Arbitrable : Supreme Court
8 months, 1 week ago

Arbitration | Dispute Regarding Full & Final Settlement Of Contract Is Arbitrable : Supreme Court

Live Law  

The Supreme Court held that if any dispute arises as to whether a contract has been discharged or not, such a dispute is arbitrable. “Although ordinarily no arbitrable disputes may subsist after execution of a full and final settlement, yet any dispute pertaining to the full and final settlement itself, by necessary implication being a dispute arising out of or …

Clause Captioned As “Arbitration”, Doesn’t Conclusively Imply Mandatory Nature Of Arbitration: Bombay High Court
2 years ago

Clause Captioned As “Arbitration”, Doesn’t Conclusively Imply Mandatory Nature Of Arbitration: Bombay High Court

Live Law  

The Bombay High Court has ruled that the use of the word ‘can’ in the relevant clause has the effect of qualifying Arbitration as a mode of settlement, and the mere fact that a particular clause is captioned as “Arbitration”, does not conclusively imply the mandatory nature of arbitration when the option is left to the parties to settle their …

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
2 years, 6 months ago

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

Live Law  

The Supreme Court observed that an arbitration clause has to be given effect even if it does not expressly state that the decision of the arbitrator will be final and binding on the parties.The deficiency of words in agreement which otherwise fortifies the intention of the parties to arbitrate their disputes, cannot legitimise the annulment of arbitration clause, the. The …

Mere Use Of Words "Arbitration" Or "Arbitrator" In A Clause Won't Make It Arbitration Agreement : Supreme Court
2 years, 7 months ago

Mere Use Of Words "Arbitration" Or "Arbitrator" In A Clause Won't Make It Arbitration Agreement : Supreme Court

Live Law  

The Supreme Court observed that an arbitration agreement should disclose a determination and obligation on behalf of parties to refer disputes to arbitration.The bench comprising Justices DY Chandrachud and AS Bopanna noted that mere use of the word "arbitration" or "arbitrator" in a clause will not make it an arbitration agreement, if it requires or contemplates a further or fresh …

Arbitration Clause In Unstamped Charter Party Agreement Can Invoke Jurisdiction Under Section 9 Of A&C Act: Andhra Pradesh High Court
2 years, 10 months ago

Arbitration Clause In Unstamped Charter Party Agreement Can Invoke Jurisdiction Under Section 9 Of A&C Act: Andhra Pradesh High Court

Live Law  

The Andhra Pradesh High Court has ruled that an arbitration clause contained in a substantive agreement is an independent and autonomous clause, and even if the substantive agreement is not duly stamped as per the Indian Stamp Act, 1899, the arbitration clause is admissible in evidence before the Court who can take into consideration the arbitration clause to decide an …

Arbitration Court Reckoner : June & July 2021
3 years, 6 months ago

Arbitration Court Reckoner : June & July 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 months of June & July 2021 under the Arbitration & Conciliation Act, 1996. Section 7 Non-filing of any reply/objection despite service of notice of S. 11 petition would constitute acceptance of existence of arbitration agreement In Swastik Pipe …

The Existential Conundrum Of An Arbitration Agreement
5 years, 11 months ago

The Existential Conundrum Of An Arbitration Agreement

Live Law  

On 18th July 2018, a bill titled The Arbitration and Conciliation Bill, 2018 was introduced in the Lok Sabha. The newly inserted Section 11 which confines the Supreme Court or High Court's role "to the examination of the existence of an arbitration agreement" in an application filed by a party under Section 11, or was omitted by clause 3 of …

Conflict And Conundrum: Section 26 Of The Arbitration And Conciliation (Amendment) Act, 2015
7 years ago

Conflict And Conundrum: Section 26 Of The Arbitration And Conciliation (Amendment) Act, 2015

Live Law  

Section 26 of Arbitration and Conciliation Act, 2015 was enshrined to give hiatus to the controversy of applicable provisions to the pending arbitral proceedings. Nothing contained in this Act shall apply to the arbitral proceedings commenced, in accordance with the provisions of section 21 of the principal Act, before the commencement of this Act unless the parties otherwise agree but …

Conflict And Conundrum: Section 26 Of The Arbitration And Conciliation (Amendment) Act, 2015
7 years ago

Conflict And Conundrum: Section 26 Of The Arbitration And Conciliation (Amendment) Act, 2015

Live Law  

Section 26 of Arbitration and Conciliation Act, 2015 was enshrined to give hiatus to the controversy of applicable provisions to the pending arbitral proceedings. Nothing contained in this Act shall apply to the arbitral proceedings commenced, in accordance with the provisions of section 21 of the principal Act, before the commencement of this Act unless the parties otherwise agree but …

Mere Non­-Filing Of Original/Certified Copy Of Arbitration Agreement Does Not Entail Dismissal Of Application For Reference: SC [Read Judgment]
8 years, 4 months ago

Mere Non­-Filing Of Original/Certified Copy Of Arbitration Agreement Does Not Entail Dismissal Of Application For Reference: SC [Read Judgment]

Live Law  

What is prohibited is the entertainment of the application unless it is accompanied by the original arbitration agreement or a duly certified copy thereof, the Court said.The Supreme Court in Ananthesh Bhakta vs. Nayana A. Bhakta, has observed that filing of an application seeking reference to arbitration under Section 8 of the Arbitration and Conciliation Act, 1996, without producing. What …

Significant Judgments On Arbitration And Conciliation Act, 1996 [May 2020 To July 2020]
28 years, 10 months ago

Significant Judgments On Arbitration And Conciliation Act, 1996 [May 2020 To July 2020]

Live Law  

Introduction The Arbitration and Conciliation Act, 1996 has been enacted in order to consolidate and amend the law relating to domestic arbitration, international commercial arbitration and enforcement of foreign arbitral awards as also to define the law relating to conciliation. With regard to applicability of Section 11 of the Arbitration Act to the facts of the instant case, the Delhi …

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