“It is clear from the bare reading of Sub-Section 1(a) of Section 14 that mandate of an Arbitrator shall terminate if it fails to act without undue delay. In the instant case, the Arbitrator became de jure unable to perform his functions. The parties agreed to bind themselves by the time fixed for the Arbitration […]Read more "Section 14 of The Arbitration Act"
“Section 11(6A) was added by The Amendment Act of 2015. Section 3 of The Amendment Act of 2019 insofar as it pertains to the omission of this Sub-Section has not yet been brought into force. The omission of the Sub-Section is not so as to resuscitate the law that was prevailing prior to The Amendment […]Read more "Section 11(6A) of The Arbitration Act"
“To read Section 36, prior to The 2015 Amendment Act, as inferring something negative, namely, that where the time for making an application under Section 34 has not expired and therefore, on such application being made within time, an automatic-stay ensues, is to read something into Section 36 which is not there at all. This […]Read more "Section 36 of The Arbitration Act"
It is true that unless agreed, The Amended Act shall not apply to Arbitral Proceedings, commenced before the The Amendment Act, in accordance with The Principal Act. “In Union of India v. M.P. Gupta (2004) 10 SCC 504; Union of India v. V.S. Engineering (P) Ltd., (2006) 13 SCC 240; Union of India v. Singh Builders Syndicate (2009) […]Read more "Named Arbitrators"
Dicitex was facing financial distress and economical duress. Oriental Insurance had insisted Dicitex to sign a clean discharge voucher and to withdraw the letter of protest addressed by it, failing which, Oriental Insurance would not release the amount that was reflected in the discharge voucher. HC allowed an application under Section 11(6), preferred by Dicitex, […]Read more "Section 11(6) of The Arbitration Act III"
“We must first consider whether it is the 1940 Act or the 1996 Act which applies to the Arbitration Applications. It is settled law that the date of commencement of Arbitration Proceedings for the purpose of deciding which Act applies, upon a conjoint reading of Sections 21 and Section 85(2)(a) of the 1996 Act, shall […]Read more "Statutory Limitation of Arbitration"
Arbitration Agreements need not be a formal contract. Section 7(4)(b) states that an Arbitration Agreement can be derived from exchange of letters, telex, telegram or other means of communication, including through electronic means. What is required to be ascertained is the intention of the parties to refer their disputes or differences to Arbitration. The intention […]Read more "Non-Signatories to Arbitration II"
In view of the allegations of fraud levelled that the compromise decree is vitiated by fraud, the parties cannot be referred to Arbitration. Such a plea could be decided only by the Civil Court. Observing that where there are allegations of fraud which are so complicated that it becomes absolutely essential that such complex issues […]Read more "Section 8 of The Arbitration Act VII"
“Arbitration shall be under Indian Arbitration and Conciliation Law, 1996 and the Venue of Arbitration shall be Bhubaneswar.” “Where the contract specifies the jurisdiction of the Court at a particular place, only such Court will have the jurisdiction to deal with the matter and parties intended to exclude all other Courts. In the present case, […]Read more "Venue of Arbitration"
Sub-Section (3) of Section 36 uses the phrase “have due regard to”. In Pam Developments Pvt. Ltd. v. State of West Bengal, [Civil Appeal No. 5432 of 2019] the phrase has been interpreted to mean that CPC provisions, though to be taken into consideration, are not mandatory. Also see, Shri Sitaram Sugar Company Limited, (1990) […]Read more "Section 36(3) of The Arbitration Act"
“The legal position as to when a Non-Signatory to an Arbitration Agreement can be impleaded and subjected to Arbitration Proceedings is no more res integra. In the case of Chloro Controls India Private Limited, (2013) 1 SCC 641 a Three-Judge Bench of this Court opined that ordinarily, an Arbitration takes place between the persons who […]Read more "Non-Signatories to Arbitration I"
“Section 12(5) is a new provision which relates to the de jure inability of an Arbitrator to act as such. Under this provision, any prior agreement to the contrary is wiped out by the non-obstante clause in Section 12(5) the moment any person whose relationship with the parties or the counsel or the subject matter […]Read more "Section 12(5) of The Arbitration Act III"
“It shall be an essential term of this contract that in order to avoid frivolous claims the party invoking Arbitration shall specify the dispute based on facts and calculations stating the amount claimed under each claim and shall furnish a ‘deposit-at-call’ for ten percent of the amount claimed, on a schedule bank in the name […]Read more "Arbitrariness in Arbitration Clauses"
“It will be noticed that ‘validity’ of an Arbitration Agreement is apart from its ‘existence’. One moot question that arises, which needs to be authoritatively decided by a Bench of Three Learned Judges, is whether the word ‘existence’ would include weeding-out Arbitration Clauses in agreements which indicate that the subject-matter is incapable of Arbitration. Questions […]Read more "Referred to Larger Bench XVIII: Arbitrability, The Transfer of Property Act"
“The principle of ‘incorporation by reference’ of an Arbitration Clause, from another document or contract is a well-established principle in Arbitration Jurisprudence [Clements v. Devon Country Insurance Committee,  1 KB 94; Macleod Ross and Co. Ltd. v. Compagnie d’ Assurances Generales L’Helvetia of St Gall,  1 Lloyd’s Rep 12 (CA)]. This principle has […]Read more "Section 7(5) of The Arbitration Act IV"
“As far as Section 34 is concerned, the position is well-settled by now that the Court does not sit in appeal over the Arbitral Award and may interfere on merits on the limited ground provided under Section 34(2)(b)(ii). Arbitral Awards may not be interfered with if the view taken by the Arbitrator is a possible […]Read more "Section 34 of The Arbitration Act I"
My Lord, Interest? No. “The High Court has held that no interest is payable. Arbitrators are creatures of agreements. G.C. Roy, (1992) 1 SCC 508 exhaustively dealt with power of the Arbitral Tribunals to grant pre-reference and pendente lite interest. Of course, 1940 Act was in vogue at that time. In Reliance Cellulose Products Ltd., […]Read more "Section 31(7) of The Arbitration Act V"
“After the Amendment to The Arbitration and Conciliation Act, 2015 – Section 12(5) prohibits the employee of one of the parties from being an Arbitrator. In the present case, the agreement between the parties was entered into on 28.01.2000 and the Arbitration Proceedings commenced way back in 2009 and thus, one cannot invoke Section 12(5) […]Read more "Section 12(5) of The Arbitration Act II"
“The present case is governed by The Pre-Amended 1996 Act [See, Section 15(2)]. This Court in ACC Ltd. v. Global Cements Ltd., (2012) 7 SCC 71 held that the procedure agreed upon by the parties for the appointment of the Original Arbitrator is equally applicable to the appointment of a Substitute Arbitrator, even if the […]Read more "Section 15(2) of The Arbitration Act III"
“Section 26 of The Arbitration and Conciliation (Amendment) Act, 2015 has to be construed literally first, and then purposively and pragmatically. Section 26 is indeed in two parts, separate and distinct. Whereas the first part refers only to Arbitral Proceedings before an Arbitral Tribunal, the second part refers to Court Proceedings “in relation to” Arbitral […]Read more "Section 26 of The Arbitration Act"