Moratorium Under IBC Does Not Bar Payment Of Fees To Arbitrator Due Prior To Moratorium: Madras High Court
1 year, 3 months ago

Moratorium Under IBC Does Not Bar Payment Of Fees To Arbitrator Due Prior To Moratorium: Madras High Court

Live Law  

The High Court of Madras has held that the moratorium under Section 14 of the Insolvency and Bankruptcy Code, 2016 does not affect the payment of fees to the arbitrator for the award passed before the moratorium was declared. The Court referred to the decision of the Supreme Court in ONGC v. Afcons Gunanusa, wherein the Apex Court had noted that fee schedule prescribed in Schedule IV of the Arbitration and Conciliation Act, 1996 is not mandatory and that parties to Arbitration may choose another fee structure for the Arbitrator by agreement, therefore, the arbitrator would be at liberty to determine his fees with the consent of the parties. The Court again referred to the judgment in ONGC to hold that the fees of the arbitrator would depend on a variety of reasons such as complexity of the disputes; difficulty or novelty of the questions involved; the skill, specialised knowledge and responsibility of the Arbitral Tribunal; number and importance of documents to be studied; value of the property involved or the amount or the sum in issue and importance of the dispute to the parties. The Court observed that the award has been passed against the applicant and unless it pays the agreed balance arbitrator’s fees, it would not be able to challenge the award as the delivery of award is withheld unless the lien is cleared.

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History of this topic

Ineligibility Of Arbitrator Cannot Be Challenged First Time Under Section 34 Of Arbitration Act: Madras High Court
2 weeks, 5 days ago

Ineligibility Of Arbitrator Cannot Be Challenged First Time Under Section 34 Of Arbitration Act: Madras High Court

Live Law  

The Madras High Court bench of of Chief justice Mr. K.R.Shriram and Justice Senthil Kumar Ramamoorthy has held that the ineligibility of the Arbitrator cannot be challenged for the first time under section 34 of the Arbitration Act when there were enough opportunities to challenge the same in the earlier proceedings. Later when the award was against the respondents, they …

Arbitrators Cannot Pass Binding And Enforceable Orders Unilaterally Determining Their Fees: Delhi High Court
3 weeks, 4 days ago

Arbitrators Cannot Pass Binding And Enforceable Orders Unilaterally Determining Their Fees: Delhi High Court

Live Law  

The Delhi High Court bench of Justice Dinesh Kumar Sharma has affirmed that Arbitrators do not have the power to unilaterally issue binding and enforceable orders determining their own fees. It was further submitted that in ONGC v. Afcons Gunanusa JV 2022 the Hon'ble Supreme Court has held that a party who is not agreeable to a unilateral revision of …

Delhi High Court Stays Arbitral Proceedings Where Petitioner's Defence Was Struck-Off Due To Non-Payment Of Arbitral Fees
3 weeks, 6 days ago

Delhi High Court Stays Arbitral Proceedings Where Petitioner's Defence Was Struck-Off Due To Non-Payment Of Arbitral Fees

Live Law  

The Delhi High Court bench of Justice Sanjeev Narula has held that the striking off of the defence of the Petitioner for non-payment of arbitral fees is a drastic measure that exceeds the jurisdiction of the Arbitrator. The court noted that “Section 38 of the Arbitration and Conciliation Act stipulates that parties shall deposit equal shares of the arbitral fees. …

Arbitral Tribunal May Impose Costs On Party Abusing Referral Court's Limited Jurisdiction To Compel Another's Participation In Arbitration : Supreme Court
1 month, 2 weeks ago

Arbitral Tribunal May Impose Costs On Party Abusing Referral Court's Limited Jurisdiction To Compel Another's Participation In Arbitration : Supreme Court

Live Law  

The Supreme Court held that in the interest of justice, the Arbitral Tribunal may impose costs on the Party who abused the process of law constraining another party to participate in the Arbitral Proceedings by taking advantage of minimal judicial interference at the referral stage. “In order to balance such a limited scope of judicial interference with the interests of …

Arbitrators Must Separately Calculate Fees For Claims And Counterclaims In Ad Hoc Arbitration: Delhi High Court
4 months, 3 weeks ago

Arbitrators Must Separately Calculate Fees For Claims And Counterclaims In Ad Hoc Arbitration: Delhi High Court

Live Law  

The Delhi High Court bench of Justice Jasmeet Singh has set aside computration of fee by an arbitration on the basis decision in Rail Vikas Nigam Ltd. vs. Simplex Infrastructures Ltd which was later set aside in ONGC Ltd. v. Afcons Gunanusa JV, 2022 LiveLaw 723. The final computation of the fee by the Arbitrator was based on the judgment …

Chief Justice Or Their Designate Cannot Adjudicate Merits Of Dispute Under Section 11 Of Arbitration Act: Calcutta High Court
5 months, 3 weeks ago

Chief Justice Or Their Designate Cannot Adjudicate Merits Of Dispute Under Section 11 Of Arbitration Act: Calcutta High Court

Live Law  

The Calcutta High Court bench of Justice Sabyasachi Bhattacharyya has held that it is completely beyond the domain of the Chief Justice and/or his designate, sitting in jurisdiction under Section 11 of the Arbitration and Conciliation Act, 1996, to adjudicate even prima facie on the merits of an arguable issue involved in the matter, which would fall categorically within the …

Appointment Of Arbitrator In Violation Of S. 12(5) Of A&C Act Is Void, Waiver Of This Provision Requires Explicit Written Agreement: Kerala High Court
8 months ago

Appointment Of Arbitrator In Violation Of S. 12(5) Of A&C Act Is Void, Waiver Of This Provision Requires Explicit Written Agreement: Kerala High Court

Live Law  

The Kerala High Court single bench of Justice G. Girish held that the exemption provided for under the proviso of Section 12 of the Arbitration and Conciliation Act applies only in cases where there is a waiver explicitly agreed upon in writing by the parties involved. Feeling aggrieved, the Petitioner approached the Kerala High Court under Section 14 read with …

Arbitration Act | When Parties Engage In Constant Communication, Unjust To Dismiss Claim Solely On Grounds Of Being Time-Barred: Calcutta High Court
8 months, 3 weeks ago

Arbitration Act | When Parties Engage In Constant Communication, Unjust To Dismiss Claim Solely On Grounds Of Being Time-Barred: Calcutta High Court

Live Law  

The Calcutta High Court single bench of Justice Moushumi Bhattacharya held that it would be an unnatural construction of Section 11 of the Arbitration and Conciliation Act, 1996 where a party with a bona fide and a genuine claim is left in the lurch on the defence of the claim being barred by limitation. Brief Facts: The Petitioner approached the …

Unilateral Appointment Of Arbitrator By Party: Delhi High Cout Set Aside Arbitral Award As It Contravened Section 12(5) A&C And & 7th Schedule
9 months ago

Unilateral Appointment Of Arbitrator By Party: Delhi High Cout Set Aside Arbitral Award As It Contravened Section 12(5) A&C And & 7th Schedule

Live Law  

The Delhi High Court single bench of Justice Jasmeet Singh held aside an arbitral award noting that the arbitrator was unilaterally appointed by the Respondent. The bench held that that the unilateral appointment of the Sole Arbitrator by Respondent was non-est in law, as it contravened Section 12 read with the Seventh Schedule of the Arbitration and Conciliation Act, 1996. …

Arbitrators Can't Unilaterally Modify Fee, Needs Parties' Consent: Bombay High Court
10 months, 2 weeks ago

Arbitrators Can't Unilaterally Modify Fee, Needs Parties' Consent: Bombay High Court

Live Law  

The Bombay High Court bench comprising Justice Manish Pitale held that any amendments, revisions, or modifications in fees of an arbitrator must only occur with the consent of the parties, as outlined in the tripartite agreement and per Schedule IV of the Arbitration and Conciliation Act, 1996. Observing a need for extra time, the Respondent approached the High Court and …

Appellate Court May Reject, Not Dismiss An Appeal For Non-Payment Of Court Fee: Kerala High Court
11 months, 3 weeks ago

Appellate Court May Reject, Not Dismiss An Appeal For Non-Payment Of Court Fee: Kerala High Court

Live Law  

The Kerala High Court has held that an appellate court may only reject and not dismiss an appeal for non-payment of court fee by the party.A single judge bench of Justice Badharudeen was dealing with a second appeal, filed as a consequence of first appellate court's order dismissing the appeal as “balance court fee not paid". The Kerala High Court …

Court Under Section 29A Of The A&C Act Would Not Consider Issue Regarding Fees Of Arbitral Tribunal: Delhi High Court
1 year, 5 months ago

Court Under Section 29A Of The A&C Act Would Not Consider Issue Regarding Fees Of Arbitral Tribunal: Delhi High Court

Live Law  

The High Court of Delhi has held the Court exercising power under Section 29A of the A&C Act, which provides for extension of time to conclude arbitral proceedings, is only concerned with the issue as to whether the arbitrator has acted with expedition in the matter and would not consider any issue regarding the conduct of the arbitration or the …

Calcutta High Court Criticizes The Approach Of Finance And Banking Companies Unilaterally Appointing The Arbitrator; Refuses To Enforce ‘Unilateral Appointment Award’
1 year, 9 months ago

Calcutta High Court Criticizes The Approach Of Finance And Banking Companies Unilaterally Appointing The Arbitrator; Refuses To Enforce ‘Unilateral Appointment Award’

Live Law  

The High Court of Calcutta has deprecated the practice of banking and financial institutions unilaterally appointing the arbitrator. It held that executing court also has the power to declare an ‘unilateral appointment award’ non-est in law, declare it to be a nullity and direct the parties to re-agitate their dispute before an independent and impartial arbitral tribunal. It relied on …

Arbitrator Who Accepted Brief Of Party’s Lawyer In An Unrelated Matter, No Clash of Interest Involved: Bombay High Court
1 year, 10 months ago

Arbitrator Who Accepted Brief Of Party’s Lawyer In An Unrelated Matter, No Clash of Interest Involved: Bombay High Court

Live Law  

The Bombay High Court has ruled that there is no clash of interest involved where the Arbitrator had acted as a counsel and represented the Advocate representing the opposite party, in another unrelated matter for some other client. In a petition filed before the Bombay High Court under Section 11 of the A&C Act, the Court appointed a Sole Arbitrator …

Moratorium Under Companies Act, 2013, Parties Cannot Be Referred To Arbitration: Delhi High Court
2 years ago

Moratorium Under Companies Act, 2013, Parties Cannot Be Referred To Arbitration: Delhi High Court

Live Law  

The Delhi High Court has ruled that the moratorium granted by the National Company Law Appellate Tribunal, staying the institution of suits and proceedings against the Corporate Debtor, after the resolution process is initiated against it under Sections 241 and 242 of the Companies Act, 2013, is akin to an order of moratorium passed under Section 14 of the Insolvency …

Arbitral Fee Under The Fourth Schedule Of A&C Act, Supreme Court Settles The Issue
2 years ago

Arbitral Fee Under The Fourth Schedule Of A&C Act, Supreme Court Settles The Issue

Live Law  

On August 30, 2022, the Supreme Court in the case of ONGC v. Afcons Gunanusa JV whilst dealing with critical issues pertaining to the interpretation of the Fourth Schedule to the Arbitration and Conciliation Act, 1996 and unilateral fixation of arbitral fee, emphasised on party autonomy in arbitration proceedings and crystalized the law relating to arbitrator's fees. The Court determined …

Participation In Arbitral Proceedings, Does Not Disentitle Party To Challenge Award On Ground Of Unilateral Appointment Of Arbitrator: Bombay High Court
2 years ago

Participation In Arbitral Proceedings, Does Not Disentitle Party To Challenge Award On Ground Of Unilateral Appointment Of Arbitrator: Bombay High Court

Live Law  

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 the arbitration proceedings were vitiated due to the unilateral appointment of the Arbitrator by the opposite party, falling foul of Section 12 read with the Seventh Schedule of the Arbitration and …

Circumstances Mentioned Under Schedules V Do Not Per Se Render The Arbitrator Ineligible: Delhi High Court
2 years, 1 month ago

Circumstances Mentioned Under Schedules V Do Not Per Se Render The Arbitrator Ineligible: Delhi High Court

Live Law  

The High Court of Delhi has held that unlike Schedule VII, the circumstances mentioned under the Vth Schedule do not per se render an arbitrator ineligible to be appointed as arbitrator unless it is established that the arbitrator's neutrality was indeed compromised. Grounds of Appeal The appellant challenged the award on the following grounds: The arbitrator was ineligible to be …

Parties Can Deviate From Terms Of Jurisdiction Under The Arbitration Clause Only Once: Madras High Court
2 years, 3 months ago

Parties Can Deviate From Terms Of Jurisdiction Under The Arbitration Clause Only Once: Madras High Court

Live Law  

The Madras High Court has ruled that the parties have got the liberty to deviate from the terms with respect to the jurisdiction, as contained in the Arbitration Clause; however, the number of such deviations is limited to only one. After certain disputes arose between the parties, the petitioner invoked the arbitration clause and filed an application under Section 11 …

Arbitrators Fee Cap Is Rs 30 Lakhs, Ceiling Limit Applicable To Individual Arbitrators, Not Tribunal As A Whole : Supreme Court
2 years, 3 months ago

Arbitrators Fee Cap Is Rs 30 Lakhs, Ceiling Limit Applicable To Individual Arbitrators, Not Tribunal As A Whole : Supreme Court

Live Law  

The Supreme Court held that the ceiling of Rs 30,00,000 in entry at Serial No 6 of the Fourth Schedule of the Arbitration and Conciliation Act is applicable to the sum of base amount and the variable amount, and not just the variable amount.This means that the highest fee payable shall be Rs 30,00,000, the bench comprising Justices DY Chandrachud, …

'Hold Preliminary Hearings To Fix Arbitrator's Fee' : Supreme Court Issues Directives To Govern Fees Of Arbitrators
2 years, 3 months ago

'Hold Preliminary Hearings To Fix Arbitrator's Fee' : Supreme Court Issues Directives To Govern Fees Of Arbitrators

Live Law  

In its judgment holding that arbitrators do not have the power to unilaterally fix their fees, the Supreme Court also issued directives governing fees of arbitrators in ad hoc arbitrations.The bench comprising Justices DY Chandrachud, Surya Kant and Sanjiv Khanna observed that the fees of the arbitrators must be fixed at the inception to avoid unnecessary litigation and conflicts between. …

Arbitrators Cannot Unilaterally Fix Their Fee As It Violates Party Autonomy : Supreme Court
2 years, 3 months ago

Arbitrators Cannot Unilaterally Fix Their Fee As It Violates Party Autonomy : Supreme Court

Live Law  

In a significant judgment, the Supreme Court on Tuesday held that arbitrators do not have the power to unilaterally fix their fees without the consent of the parties.The Court further held that the fee scale prescribed under the 4th schedule of the Arbitration and Conciliation Act 1996 is not mandatory.Justices D. Y. Chandrachud read out the opeartive portion as follows …

Challenge By NHAI On Fee Fixation By Arbitral Tribunal, Delhi High Court Holds That Tribunal Can Fix Its Fees
2 years, 7 months ago

Challenge By NHAI On Fee Fixation By Arbitral Tribunal, Delhi High Court Holds That Tribunal Can Fix Its Fees

Live Law  

The Delhi High Court has ruled that the Arbitral Tribunal is permitted to fix its fee, if its appointment is made by way of an ad hoc agreement between the parties. The petitioner NHAI submitted before the High Court that the Arbitral Tribunal had fixed the arbitral fee contrary to the terms of the agreement between the parties. NHAI contended …

Arbitrators Raising Fees In The Middle Of Arbitration May Amount To Misconduct, Supreme Court Says During Hearing
2 years, 8 months ago

Arbitrators Raising Fees In The Middle Of Arbitration May Amount To Misconduct, Supreme Court Says During Hearing

Live Law  

The Supreme Court on Thursday continued hearing on the issue of fixation of standards for fees for arbitrators. For Determination Of Arbitrator's Fees Claim & Counterclaim Should Be Charged Separately; Legislature Has Been Very Conscious Since Its Mindfulness To Situation That Counterclaim Puts Separate Cause Of Action; There Has To Be Overarching Dignity Which Must Encompass Arbitration Proceeding & While …

Arbitrator's Fee : Claim & Counter-Claim Have To Be Bundled Up Together, With Rs.30 lakhs Ceiling, Says Supreme Court During Hearing
2 years, 8 months ago

Arbitrator's Fee : Claim & Counter-Claim Have To Be Bundled Up Together, With Rs.30 lakhs Ceiling, Says Supreme Court During Hearing

Live Law  

The Supreme Court on Wednesday resumed the hearing on the issue of fixation of standards for fees for arbitrators. Further, the SG made submissions on whether the model fee corresponding to the various slabs of the 'sum in dispute', as stipulated in Schedule IV of the 1996 Arbitration Act, would be for the whole arbitral tribunal or for each arbitrator. …

Arbitral Fee Under Fourth Schedule Based On Aggregate Value Of Claim & Counter-Claim : Delhi High Court
2 years, 9 months ago

Arbitral Fee Under Fourth Schedule Based On Aggregate Value Of Claim & Counter-Claim : Delhi High Court

Live Law  

The Delhi High Court has observed that the term "sum in dispute" provided in the 4th Schedule to the Arbitration and Conciliation Act, 1996 has to be interpreted so as to include the aggregate value of the claims as well as counter claims.The High Court disagreed with the Arbitrator's view that the claims and counter-claims have to be assessed separately …

Statutory Remedy Against Appointment Of Arbitrator Lies Under Arbitration Act, Can't Invoke Extraordinary Jurisdiction Under Art. 226: Gujarat HC
2 years, 10 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 …

Imposition Of Moratorium Under IBC Does Not Bar Complaints Against Natural Persons: Madras High Court
2 years, 10 months ago

Imposition Of Moratorium Under IBC Does Not Bar Complaints Against Natural Persons: Madras High Court

Live Law  

The Madras High Court in a Bench comprising of Justice N. Sathish Kumar in M/s. Muzain Hides held that as long as a moratorium under Section 14 of the Insolvency and Bankruptcy Code is imposed, proceedings under Section 138/141 of the Negotiable Instruments Act cannot be initiated against the Corporate Debtor. The counsel for the Petitioners alleged that since the …

Writ Jurisdiction Cannot Be Invoked To Challenge Appointment Of Arbitrator: Kerala High Court
2 years, 11 months ago

Writ Jurisdiction Cannot Be Invoked To Challenge Appointment Of Arbitrator: Kerala High Court

Live Law  

The Kerala High Court recently held that writ jurisdiction cannot be invoked to challenge the appointment of an arbitrator since such grievances could be redressed as per the provisions of the Arbitration and Conciliation Act, 1996.Ruling that there should not be any judicial interference in the course of the arbitral proceedings for redressal of such grievances, Justice P.B. The Kerala …

'Complete Abuse Of Process': Madras HC Imposes Rs 1 Lakh Costs For 'Worthless' Appeal, Cautions Against Impleading Arbitrators
3 years, 2 months ago

'Complete Abuse Of Process': Madras HC Imposes Rs 1 Lakh Costs For 'Worthless' Appeal, Cautions Against Impleading Arbitrators

Live Law  

The Madras High Court on Wednesday imposed Rs 1 lakh costs on an appellant while dismissing a challenge to an arbitral award by terming it to be an abuse of the process of law. The appellant was directed to pay Rs 50,000 to the respondent and a further Rs 50,000 to the Tamil Nadu Legal Services Authority within a month.A …

[IBC] Is Moratorium Applicable to Suits Filed By Corporate Debtor?: SC Issues Notice [Read Order]
4 years, 2 months ago

[IBC] Is Moratorium Applicable to Suits Filed By Corporate Debtor?: SC Issues Notice [Read Order]

Live Law  

Is the provision of moratorium in Section 14A of Insolvency and Bankruptcy Code, 2016 only applicable to civil suits filed against the corporate debtor?, the Supreme Court has issued a notice in an SLP which raises this issue.The Special Leave Petition is filed against a Bombay High Court order contending that the High Court erred in its interpretation of Section …

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