Section 11 Petitions Seeking Relief But Not Raised In The Previous Arbitration; Gross Abuse Of Process of Court: Delhi High Court
2 years ago

Section 11 Petitions Seeking Relief But Not Raised In The Previous Arbitration; Gross Abuse Of Process of Court: Delhi High Court

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The Delhi High Court has ruled that since the party had failed to challenge the termination of the Collaboration Agreement in the first round of arbitral proceedings, the demolition of the structure built by it under the said Collaboration Agreement would not give it a fresh cause of action. The Arbitral Tribunal passed an award in favour of the respondent, against which the petitioner filed a petition under Section 34 of the A&C Act before the Delhi High Court, which was only partly allowed. Claiming that such demolition gave a fresh cause of action to the petitioner, the petitioner again invoked the Arbitration Agreement and filed a second petition under Section 11 of the A&C Act before the Delhi High Court, seeking to refer the matter to arbitration. To this, the respondent, Surinder Kumar Dewan, averred that the Section 11 petitions filed by the petitioner were frivolous and a gross abuse of the process of the Court. Dismissing the contention of the petitioner, Tejpal Singh, that the demolition of the structure would give a fresh cause of action to him, the Court said, “Once the Collaboration Agreement had been terminated, the claim, if any, of the petitioner in the superstructure raised by the petitioner could only have been asserted by the petitioner before the earlier Arbitral Tribunal.” Referring to Apex Court’s decision in Vidya Drolia & Ors.

History of this topic

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