New Arbitrator Must Initiate Proceedings Afresh When Previous Arbitrator's Appointment Is Void Ab Initio: Kerala High Court

The Kerala High Court bench of Justice M.A. Abdul Hakhim has held that where an arbitral award is set aside on the ground that the appointment of the arbitrator was void ab initio and the arbitral proceedings are declared non est, the new arbitrator must initiate proceedings afresh. The question of admissibility of previously recorded evidence is to be decided by the...

Arbitration Clause Allowing MD To Appoint Sole Arbitrator After Failure Of Appointment By Mutual Consent Violates SC's Order: Delhi High Court

The Delhi High Court bench of Justice Jyoti Singh has held that the clause in question indeed contemplates the appointment of an Arbitrator by mutual consent; however, in the event of failure, it vests the power of appointing a Sole Arbitrator with the Managing Director of Respondent No. 1. It further held that the Company acting through its Managing Director will have interest...

Recourse To External Correspondences To Interpret Clause Despite Clear & Unambiguous Terms Amounts To 'Patent Illegality': Delhi High Court

The Delhi High Court bench comprising Justice Vibhu Bakhru and Justice Tejas Karia has held that when the language of the contract is plain, clear and unambiguous, recourse to internal aids of interpretation or extraneous materials such as negotiations and correspondence is impermissible. “Ignoring an explicit clause of the contract or acting contrary to the terms of the contract...

Once Right To File Written Statement Is Closed, Application U/S 8 Of Arbitration Act Can't Be Entertained: Delhi High Court

The Delhi High Court bench of Justices Shalinder Kaur and Navin Chawla has held that once the right to file a written statement is closed, an application under Section 8 of the Arbitration and Conciliation Act seeking reference to arbitration is not maintainable. Brief Facts: This Regular First Appeal under Section 13 of the Commercial Courts Act, 2015 challenges the judgment...

Right To Appoint Arbitrator Is Not Automatically Forfeited After Expiry Of 30 Days From Date Of Demand Made By Other Party: Gauhati High Court

The Gauhati High Court bench of Justice Yarenjungla Longkumer has held that if an arbitrator is not appointed within 30 days of the demand by the other party, the right to appoint is not automatically forfeited. However, such appointment must be made after the 30-day period but before the other party files an application under Section 11 of the Arbitration Act. This is a petition...

In Interconnected Agreements, Use Of Word 'May' Does Not Defeat Clear Intention To Arbitrate In Main Agreement: Telangana High Court

The Telangana High Court bench of Justice K. Lakshman has held that in case of interconnected agreements, where the mother agreement clearly and unequivocally refers the disputes to arbitration, mere use of 'may' in the arbitration clause of one of the ancillary agreements will not defeat the intention to arbitrate. Brief Facts: This application has been filed under section 11(6)...

Whether A Particular Contract Is A Works Contract Under MSME Can't Be Decided Under Writ Jurisdiction: Telangana High Court

The Telangana High Court bench of Justice K. Lakshman has held that the question of whether a particular contract is a works contract or not is for the MSME Council to decide, and the dispute cannot be decided under writ jurisdiction. Brief Facts: This writ petition challenges the order dated 21.12.2024 in Case No. 1292/MSEFC/2021 passed by Respondent No. 2, seeking a declaration...

Applicability Of Arbitration Clause Is To Be Determined By Arbitrator, Cannot Be Decided In S.11 Plea: Delhi High Court

The Delhi High Court Bench of Justice Sachin Datta has held that contentions regarding the applicability and relevance of an arbitration agreement are to be dealt with by the arbitrator and cannot be gone into at the stage of section 11 petition. Once the existence of arbitration agreement is not disputed, any dispute related to the applicability of the agreement has to be dealt by...

Mere Passage Of Time Does Not Bar Arbitration If Arbitration Clause Remains Valid & Enforceable: Telangana High Court

The Telangana High Court bench of Justice K Lakshman has held that mere passage of time does not bar arbitration if the arbitration clause remains valid. The Limitation for the purpose of filing the application under section 11(6) of the Arbitration Act commences from the date when request for initiating arbitration is rejected. Brief Facts: This application has been filed...

Inconsequential Errors Cannot Be Grounds To Challenge Judicious & Reasoned Award U/S 34 Of Arbitration Act: Delhi High Court

The Delhi High Court Bench of Justice Manoj Kunar Ohri has held that the petitioner cannot take advantage of apparent inconsequential errors and fumbles to challenge the award. Inconsequential errors in the award cannot be a ground to challenge otherwise judicious and reasoned award. Brief Facts of the case: The respondent accepted an offer letter to procure a machine...

Dispute Review Board's Recommendations Are Arbitral Awards, Enforceable U/S 36 Of A&C Act: Delhi High Court

The Delhi High Court bench of Justice Vibhu Bakhru and Justice Tejas Karia has held that the recommendations of the Dispute Review Board (DRB) rendered under a contract constitute an arbitral award which is enforceable as a decree under Section 36 of the Arbitration and Conciliation Act, 1996. The court further held that the limitation for enforcement begins from the date of the award,...

Arbitration Clause Mandates Reference, Question Of Appropriateness Can't Be Considered U/S 8 Of A&C Act: Calcutta High Court

The Calcutta High Court bench of Justices Arijit Banerjee and Rai Chattopadhyay has held that where an agreement between the parties contains a clear arbitration clause and disputes arise under that agreement, the Trial Court is bound to refer the parties to arbitration. The question of whether such reference is appropriate or not does not arise, as Section 8(1) of the Arbitration...