Unilateral Option To Terminate Arbitration Agreement Does Not Render It Illegal: Bombay High Court

The Bombay High Court Bench of Justice Somasekhar Sundaresan while disposing an application for appointment of arbitrator has observed that an arbitration clause which gives option to only one party to opt out of the arbitration agreement is not invalid per se. Such arbitration agreement can be saved by eliminating the unilateral option or by making such right...

Delhi Govt Announces Deletion Of Arbitration Clauses From All Future PWD Contracts

The PWD of the Government of National Capital Territory of Delhi by notification dated April 21st, 2025, has announced the deletion of Arbitration clause from future contracts. The notification stated that the Arbitration Clause (Clause 25: Settlement of Disputes & Arbitration), which deals with the settlement of disputes by way of arbitration, shall not be a part of the GCC in...

Arbitration Weekly Digest [7th April-14th April 2025]

High Courts Bombay High Court No Bar On Arbitrator To Allow Withdrawal Of Claims Provided Legitimate Interests Of Other Party Are Not Prejudiced: Bombay High Court Case Title: Central Depositories Services (India) Limited. Vs. Ketan Lalit Shah and Ors. Citation: 2025 LiveLaw (Bom) 144 The Bombay High Court bench of Justices Revati Mohite Dere and Dr. Neela Gokhale...

Grant Of Post-Award Interest U/S 31(7)(B) Of A&C Act Is Mandatory, Arbitrator's Discretion Limited To Rate Of Interest: Delhi HC

The Delhi High Court bench of Justice Ravinder Dudeja has held that the grant of post-award interest under Section 31(7)(b) of the Arbitration and Conciliation Act, 1996 (“the Act”) is mandatory. The only discretion which the Arbitral Tribunal has is to decide the rate of interest to be awarded. Where the Arbitrator does not fix any rate of interest, then statutory rate, as...

Whether IRCTC's Revised Menu Alters Original Contract With Arbitration Clause Is For Arbitrator To Decide, Falls Outside Court's Jurisdiction: Calcutta HC

The Calcutta High Court bench of Justice Shampa Sarkar has held that whether the subsequent revision of the original menu by IRCTC form part of the original contract containing an arbitration clause is a matter to be decided by the Arbitrator. Such an issue falls outside the limited scope of the Court's jurisdiction under Section 11(6) of the Arbitration and Conciliation Act,...

Objections To Terms Of Redevelopment Agreement Can't Be Adjudicated By Court U/S 9 Of Arbitration Act: Bombay HC

The Bombay High Court bench of Justice Somasekhar Sundaresan has held that objections related to the terms of the redevelopment agreement raised by members of the society can be decided only by the appropriate forum having jurisdiction over such issues. These matters cannot be adjudicated under section 9 of the Arbitration and Conciliation Act, 1996 (Arbitration Act). Brief...

Writ Petition Can Be Entertained When Order U/S 9 Of Arbitration Act Neither Grants Nor Refuses Relief: Kerala HC

The Kerala High Court bench of Justice Harisankar V. Menon has held that a writ petition under Articles 226/227 of the Constitution of India can be entertained against an order passed by the Commercial Court under Section 9 of the Arbitration and Conciliation Act, 1996 (Arbitration Act) when such an order neither grants nor refuses to grant relief, thereby not making it appealable...

Supreme Court Flags Long Submissions In S.34/37 Arbitration Act Proceedings, Says Timelimit Needs To Be Imposed

On April 21, the Supreme Court expressed its displeasure over the prolonged arguments and submissions made by members of the Bar in arbitration proceedings under Sections 34 and 37 of the Arbitration and Conciliation Act, 1996.The Court noted that excessively long oral submissions force judges to invest significant time in reviewing extended arguments, often supported by a large volume of...

Unless Serious Allegations Of Fraud Are Established, Parties Cannot Be Denied Reference To Arbitration U/S 8 Of A&C Act: Bombay HC

The Bombay High Court bench of Justice N. J. Jamadar has held that the dispute cannot be refused referral to arbitration under Section 8 of the Arbitration and Conciliation Act, 1996 (Arbitration Act) based solely on mere allegations of fraud simpliciter, unless serious allegations of fraud that go to the root of the partnership deed containing the arbitration clause are...

Although Injunction Against Invocation Of Guarantee Cannot Be Granted, Court Can Grant Interim Protection If Prima Facie Case Is Established: Calcutta HC

The Calcutta High Court bench of Justice Shampa Sarkar has held that although an injunction against the invocation of a bank guarantee cannot normally be granted, if the petitioner establishes a prima facie case, the court should not hesitate to grant interim protection under Section 9 of the Arbitration and Conciliation Act, 1996 (Arbitration Act). Brief Facts: Gallant Equipment...

Arbitral Tribunal Can Proceed Against Party Though They Weren't Served With S.21 Notice Or Made Party In S.11 Application : Supreme Court

The Supreme Court recently observed that not being served with the notice invoking arbitration under Section 21 of the Arbitration and Conciliation Act, and not being made a party in the Section 11 application (for appointment of arbitrator), are not sufficient grounds to hold that a person cannot be made party to arbitral proceedings. "A notice invoking arbitration under Section 21 of the ACA...

Statutory Protection Under Maharashtra Rent Control Act Can't Be Circumvented By Invoking Arbitration Petition To Seek 'Speedy Eviction': High Court

The Bombay High Court bench of Justice Somasekhar Sundaresan has held that the jurisdiction under Section 9 of the Arbitration and Conciliation Act, 1996 (“the Act”) cannot be invoked to circumvent the statutory protection afforded to tenants under the Maharashtra Rent Control Act, 1999 (“Rent Act”). Interim measures under Section 9 must aid arbitral proceedings and cannot...