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 of High Court in the case of Rail Vikas Nigam Ltd. Observations by the High Court: The High Court noted the order of the Sole Arbitrator relied on the judgment of Rail Vikas Nigam Ltd. for the computation of fees. Therefore, the High Court calculated the total fee for the Sole Arbitrator for both claims and counterclaims amounts to Rs.

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History of this topic

Delhi High Court Sets Aside Claim Of Rs.15 Lakh Awarded By Arbitral Tribunal Due To Lack Of Evidence
2 weeks, 3 days ago

Delhi High Court Sets Aside Claim Of Rs.15 Lakh Awarded By Arbitral Tribunal Due To Lack Of Evidence

Live Law  

The Delhi High Court Bench of Justice Vibhu Bakhru and Justice Sachin Datta held that after persuading the Supreme Court to refer the disputes to arbitration, it is not open for the appellant to now question the validity of the reference. Thereafter, the appellant filed a suit seeking a decree of permanent injunction restraining the respondent from raising any illegal …

Delhi High Court Sets Aside Claim Of Rs.15 Lakh Awarded By Arbitral Tribunal Due To Lack Of Evidence
2 weeks, 3 days ago

Delhi High Court Sets Aside Claim Of Rs.15 Lakh Awarded By Arbitral Tribunal Due To Lack Of Evidence

Live Law  

The Delhi High Court Bench of Justice Vibhu Bakhru and Justice Sachin Datta held that after persuading the Supreme Court to refer the disputes to arbitration, it is not open for the appellant to now question the validity of the reference. Thereafter, the appellant filed a suit seeking a decree of permanent injunction restraining the respondent from raising any illegal …

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

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

Live Law  

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 …

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 Can Award Compensation For Breach If Contract Is Incapable Of Specific Performance: Delhi High Court
5 months, 1 week ago

Arbitral Tribunal Can Award Compensation For Breach If Contract Is Incapable Of Specific Performance: Delhi High Court

Live Law  

The Delhi High Court bench of Justice Vibhu Bakhru and Justice Tara Vitasta Ganju has held that the arbitral tribunal may exercise its power to award compensation for breach if a Contract has become incapable of specific performance. The Appellant's petition under Section 34 was dismissed, with the High Court noting that it cannot interfere with the arbitral tribunal's findings …

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. …

Arbitration Monthly Round-Up: November 2023
1 year ago

Arbitration Monthly Round-Up: November 2023

Live Law  

International Judgments Hong Kong Court Refuses To Enforce A Mainland Arbitration Award For Failure Of Arbitrator To Meaningfully Engage With Arbitral Proceedings Case Title: SONG LIHUA v. LEE CHEE HON, CONSTRUCTION AND ARBITRATION PROCEEDINGS NO. Section 29A Permits The Court To Extend The Mandate Of The Arbitral Tribunal Even When The Application Is Made After The Expiry Of Time Limit …

Arbitration Weekly Round-Up: 27th November to 3rd December
1 year ago

Arbitration Weekly Round-Up: 27th November to 3rd December

Live Law  

Bombay High Court N.N. Court U/S 37 Of The A&C Act Can’t Undertake An Independent Assessment Of Arbitral Award,: Bombay High Court Case Title: Madgavkar Salvage v. Bergen Offshore Logistics Pvt Ltd, Comm. Taking into account the legal position, the case law on the subject and the particular facts in the present matter, the Court is accordingly of the view …

Right Of A Party To Nominate 2/3rd Of The Arbitral Tribunal Violates Counter-Balancing: Delhi High Court Reiterates
1 year ago

Right Of A Party To Nominate 2/3rd Of The Arbitral Tribunal Violates Counter-Balancing: Delhi High Court Reiterates

Live Law  

The High Court of Delhi has held that an arbitration clause that confers on a party the right to nominate 2/3rd of arbitral tribunal violates the principles of 'counter-balancing' as sought to be achieved by the Supreme Court in the landmark judgment in Perkins. That the Supreme Court in CORE has upheld the validity of a similarly worded arbitration clause …

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 …

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 …

“Counter-Balancing” Not Achieved When 2/3rd Members Of The Arbitral Tribunal To Be Appointed By One Party: Delhi High Court
1 year, 5 months ago

“Counter-Balancing” Not Achieved When 2/3rd Members Of The Arbitral Tribunal To Be Appointed By One Party: Delhi High Court

Live Law  

The Delhi High Court has ruled that where a party is required to appoint an arbitrator from a panel made by the other contracting parties, it is mandatory for the panel to be sufficiently broad based, in conformity with the principle laid down by the top court in Voestalpine Schienen Gmbh vs. Delhi Metro Rail Corporation Ltd, 4 SCC 665. …

Can Arbitrator Be Held To Be Biased Against Party Who Did Not Accept Unilateral Increase In Fees? Supreme Court To Consider
1 year, 9 months ago

Can Arbitrator Be Held To Be Biased Against Party Who Did Not Accept Unilateral Increase In Fees? Supreme Court To Consider

Live Law  

If an arbitrator unilaterally increases his fees and if the same is accepted by one party and opposed by the other party, is there a likelihood of bias in the mind of the arbitrator against the party who opposed the increase of the fees?. The Supreme Court has decided to consider this issue.Additional Solicitor General N Venkataraman raised this issue …

Arbitration Cases Monthly Round-Up: January 2023
1 year, 10 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 …

ONGC V. Afcons By SC Will Not Affect Fee Already Fixed By Arbitration Tribunal : Delhi High Court
1 year, 10 months ago

ONGC V. Afcons By SC Will Not Affect Fee Already Fixed By Arbitration Tribunal : Delhi High Court

Live Law  

The Supreme Court in ONGC v. Afcons, 2022 LiveLaw 723 has held that maximum fees that an arbitrator can charge on a claim is Rs. 49, 87, 500/- in terms of the judgment of the Delhi High Court in Rail Vikas Nigam Ltd. v. Simplex Infrastructure Ltd before the Supreme Court reduced this amount to Rs. The Court refused to …

Award Of Costs By Arbitrator, Not Containing Quantification And Reasons, Is Arbitrary: Delhi High Court
1 year, 11 months ago

Award Of Costs By Arbitrator, Not Containing Quantification And Reasons, Is Arbitrary: Delhi High Court

Live Law  

The Delhi High Court has ruled that the mandate contained in Section 31 of the Arbitration and Conciliation Act, 1996, as per which an arbitral award shall state the reasons on which it is based, must pervade every aspect of the award, including the award of costs. The petitioner challenged the award of pendente-lite interest and costs of proceedings imposed …

Arbitration Cases Weekly Round-Up: 25 December To 31 December, 2022
1 year, 11 months ago

Arbitration Cases Weekly Round-Up: 25 December To 31 December, 2022

Live Law  

Bombay High Court: Correspondence Between Parties Cannot Overrule Clear Intention Under Agreement Providing For Optional Arbitration: Bombay High Court Case Title: GTL Infrastructure Ltd. versus Vodafone India Ltd. Arbitration Can Be Invoked Against Party Deleted From Section 9 Application: Bombay High Court Case Title: Deccan Paper Mills Co. Ltd. versus M/s. Calcutta High Court: Disclosure Of Impartiality By Arbitrator Appointed …

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 …

Arbitrators Entitled To Charge Separate Fee For Claim & Counter Claim In Arbitration Proceedings : Supreme Court
2 years, 3 months ago

Arbitrators Entitled To Charge Separate Fee For Claim & Counter Claim In Arbitration Proceedings : Supreme Court

Live Law  

The Supreme Court held that the term 'sum in dispute' in the Fourth Schedule of the Arbitration Act refers to the sum in dispute in a claim and counter-claim separately, and not cumulatively. "Arbitrators shall be entitled to charge a separate fee for the claim and the counter-claim in an ad hoc arbitration proceeding, and the fee ceiling contained in …

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. …

Plaintiff Cannot Value Suit Differently For Purpose Of Jurisdiction & For Payment Of Court Fees: Delhi High Court
2 years, 3 months ago

Plaintiff Cannot Value Suit Differently For Purpose Of Jurisdiction & For Payment Of Court Fees: Delhi High Court

Live Law  

The Delhi High Court has observed that a plaintiff cannot adopt a dual policy of valuing the suit at a certain value for the purpose of jurisdiction and payment of court fees. "The plaintiff cannot adopt a dual policy of valuing his suit at a certain value for the purpose of jurisdiction and for the purpose of payment of court …

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 Fees : If There Are HC Rules, They Should Apply; 4th Schedule Can Be A Default Provision, Supreme Court Says During Hearing
2 years, 8 months ago

Arbitrator's Fees : If There Are HC Rules, They Should Apply; 4th Schedule Can Be A Default Provision, Supreme Court Says During Hearing

Live Law  

The Supreme Court on Thursday continued the hearing on the issue of fixation of standards for fees for arbitrators. Submissions Of Counsels 4th Schedule Yardstick or Template By Which Domestic Arbitration Which Is Commercial In Nature Should Continue; Ceiling Of 30 Lakhs To Be Applied Entirely To The Table; Claim and Counterclaim Should Be Aggregate; 4th Schedule Fees Is Separate …

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 …

Delhi High Court Affirms No Embargo To Appointment Of An Arbitrator In Multiple Cases Under A&C Act
2 years, 11 months ago

Delhi High Court Affirms No Embargo To Appointment Of An Arbitrator In Multiple Cases Under A&C Act

Live Law  

In another recent judgment of the Delhi High Court in a petition under Section 11 of the Arbitration and Conciliation Act, 1996 challenging the appointment of an Arbitrator, the High Court affirmed the settled law that there is no bar in appointment of an Arbitrator in multiple cases, if so warranted. On the challenge to the appointment of its nominee …

Arbitration Court Reckoner :August-October 2021 (Part 2)
2 years, 11 months ago

Arbitration Court Reckoner :August-October 2021 (Part 2)

Live Law  

This is the second part of the article. Section 31 No scope for adding pre-award interest into the principal amount for calculating post-award interest by applying Section 31 of the Act when the Tribunal has only awarded post-award interest on principal sum In Overeas Drilling Limited v Directorate General Of Hydrocarbons Of India High Court of Delhi was dealing with …

'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 …

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