Arbitration Clause Contained In Incomplete Memorandum Of Understanding Cannot Form Basis For Arbitration Proceedings: Calcutta HC

The Calcutta High Court bench of Justice Shampa Sarkar has held that an arbitration clause in a memorandum of understanding that was not finalized, as indicated by the correspondences between the parties, cannot serve as the basis for initiating arbitration proceedings. Brief Facts: In October 2020, the Respondent approached the petitioner and they reached an oral agreement with...

After Commencement Of Arbitration, Parties Must Wait Until Award Is Pronounced To File Challenge Unless Appeal Is Available At Earlier Stage: Kerala HC

The Kerela High Court Bench of Justice Basant Balaji has held that once the arbitration has commenced, parties have to wait until the award is pronounced unless a right of appeal is available to them under Section 37 of the Act, even at an earlier stage. Brief Facts of the case: The present dispute arose with respect to an agreement, for the construction of a Multidisciplinary...

Directions For Refund Of Consideration With Interest Must Be Considered Based On Conduct Of Parties During Arbitral Proceedings: Calcutta HC

The Calcutta High Court has held that in arbitral proceedings, the direction for refund of the deposited consideration amount with interest has to be considered in the background of the conduct of the parties and their admissions during the proceedings.A division bench of Justices Soumen Sen and Biswaroop Chowdury held:The learned arbitrator rejected the claim for specific performance of...

Court Can Decline To Refer Dispute To Arbitration When Time-Barred Claim Is Evident From Record: Calcutta High Court

The Calcutta High Court bench of Justice Shampa Sarkar has held that when a claim is ex facie time-barred and no trial is needed to determine whether it is barred by limitation, the referral court can refuse to refer the matter to arbitration under Section 11 of the Arbitration and Conciliation Act, 1996 (Arbitration Act). Brief Facts: This application has been filed under section...

Composite Reference Of Disputes From Distinct Purchase Orders To Arbitration Is Valid When Parties' Conduct Indicates Single Transaction: Calcutta HC

The Calcutta High Court bench of Justice Shampa Sarkar has held that a composite reference of disputes to arbitration arising out of distinct purchase and service orders can be made when the conduct of the parties demonstrates that they were all part of a single business transaction. Brief Facts: The petitioner was engaged as an agent-cum-sub-contractor by the respondent,...

Petition U/S 34 Of Arbitration Act Cannot Be Decided Without Summoning Entire Record To Verify Service Of Notice: Karnataka HC

The Karnataka High Court bench of Justice Hanchate Sanjeevkumar has held that a petition under Section 34 of the Arbitration and Conciliation Act, 1996 (Arbitration Act) cannot be decided without first summoning the entire arbitration record to determine whether the notice was actually served on the other party. Brief Facts: Respondent No. borrowed a loan from the Appellant and when...

Tenants Occupying Premises Which Fall Under Development Agreement Cannot Be Evicted U/S 9 Of Arbitration Act: Bombay High Court

The Bombay High Court bench of Justice Somasekhar Sundaresan has held that Eviction of tenants governed by the Rent Control Act cannot be sought under Section 9 of the Arbitration and Conciliation Act, 1996 (Arbitration Act), particularly when they are not parties to the Development Agreement executed between the Developer and the Landlords and are not being provided upgraded premises in...

Schedule IV Of Arbitration Act On Fees Of Arbitrator Does Not Mandatorily Apply To International Commercial Arbitrations: Delhi High Court

The Delhi High Court bench of Justice Sachin Datta has observed that in an international commercial arbitration in terms of Section 2(1)(f)(ii) of the Arbitration and Conciliation Act, 1996, the IVth Schedule pertaining to fees of the arbitrator will not apply mandatorily in view of Explanation to Section 11(14) of the Act. Facts The disputes between the parties arose out of...

Delay In Publication Does Not Invalidate Award Unless It Is Shown That The Award Has Materially Affected Rights Of Parties: Delhi High Court

The Delhi High Court bench of Justice Dharmesh Sharma while dismissing an appeal under Section 37 of the Arbitration and Conciliation Act, 1996 has observed that delay in publication of award does not invalidate the award unless it is shown that the award has materially affected the rights of the parties. Facts The Appellant was awarded a contract for work by the Respondent No....

Invocation Of Section 9 & Section 11 Of Arbitration Act Does Not Constitute Parallel Proceedings: Bombay High Court

The Bombay High Court single bench of Justice Somasekhar Sundaresan held that the mere invocation of Section 9 and Section 11 of the Arbitration and Conciliation Act, 1996 does not amount to parallel proceedings. Further, the High Court noted that Section 9 is intended to provide interim relief to safeguard the subject matter of arbitration. On the other hand, Section 11 is limited to...

Writ Petition Is Not An Appropriate Remedy To Seek Enforcement Of Arbitral Award: Delhi High Court

The Delhi High Court bench of Justice Jyoti Singh held that when a statutory forum is created by law for redressal of grievances, a writ petition should not be entertained ignoring the statutory dispensation. The court found merit in the preliminary objection of the Railways that a writ is not the appropriate remedy for the petitioner to seek enforcement of the...

Whether Rights In Favor Of Third Party Are Created In Property Which Is Subject Matter Of Arbitration Cannot Be Decided Under Writ Jurisdiction: Karnataka HC

The Karnataka High Court bench of Mr Justice Krishna S Dixit and Mr Justice Ramachandra D. Huddar has held that whether rights in favor of a third party based on sale deeds have been created in the property, which is the subject matter of arbitration, cannot be decided by the court under writ jurisdiction. Brief Facts: The petitioner is the third party purchaser of the plots in...