Serious Allegations Of Fraud Constituting Criminal Offense Are Non-Arbitrable: Delhi High Court

The Delhi High Court bench of Justice Subramonium Prasad held that the allegations of fraud which are extremely serious and potentially constitute a criminal offense are non-arbitrable. The court noted that the plea of fraud is of such a nature that it impacts the entire contract, including the arbitration agreement. Consequently, the court held that such a dispute is not arbitrable...

Withdrawal Of MSMED Council Application Does Not Preclude Arbitration U/S 11, Even Without Council's Response: Delhi High Court

The Delhi High Court bench of Justice Subramonium Prasad held that withdrawal of an application before the MSMED Council does not bar a party from seeking the appointment of an arbitrator under Section 11 of the Arbitration and Conciliation Act, 1996, even in the absence of any corresponding response from the MSMED Council. Brief Facts: Respondent No. 2 and 3 approached...

Arbitration Clause In Invoices Can Be Binding On Parties When They Acted Upon The Invoices And No Objections Were Raised: Bombay HC

The Bombay High Court bench of Justice Somasekhar Sundaresan has observed that where the correspondence between the parties included invoices which contained an arbitration clause and the parties acted upon those invoices without protesting, then it could be deemed that the party had accepted the arbitration clause. Background Facts and Issue The Respondent had availed of...

Loss Of Profit In Works Contracts Can Be Awarded Upon Illegal Termination, Even In Absence Of Direct Proof: Calcutta High Court

The Calcutta High Court division bench of Justice Soumen Sen and Justice Biswaroop Chowdhury has held that once a contractor establishes an illegal and unjustified termination of the contract by the employer, there is no need to prove the actual loss suffered. A reasonable expectation of profit is implicit in a works contract, and compensation must be awarded accordingly. The...

Veracity Of Allegations Against Settlement Agreement Cannot Be Looked Into By Court In Application U/S 11 Of Arbitration Act: Delhi High Court

The Delhi High Court bench of Justice Manoj Kumar Ohri has reiterated that the scope of inquiry under Section 11 of the Arbitration and Conciliation Act, 1996, is limited to examining the prima facie existence of the arbitration agreement. It was further observed that if either party contests a prior settlement agreement, then such allegations cannot be looked into by the Court under...

Anti-Arbitration Suit Giving Short-Shrift To Sec 16 A&C Act Is Hit By Order 7 Rule 11(d) Of CPC: Telangana High Court Reiterates

The Telangana High Court has reiterated and clarified that suits initiated before Civil Courts to curb arbitration proceedings ignore section 16 of the Arbitration and Conciliation Act,1996, and deserve to be rejected under Order 7, Rule 11(d) as being barred by statute.The order was passed in a commercial court appeal by a Division Bench of Justice Moushumi Bhattacharya and...

Threshold To Prove Fraud & Corruption In Arbitral Award Is Much Higher Than Merely Criticising Findings Of Arbitrator: Calcutta High Court

The Calcutta High Court bench of Justice Shampa Sarkar has observed that in order to prove that the making of the award was vitiated by fraud, the petitioner would have to demonstrate that the unethical behaviour of the arbitrator surpassed all moral standards. The Court reiterated that an honest mistake or incorrect appreciation of the terms of the contract cannot be either fraud...

Arbitration Agreement Valid Without Specifying 'Applicable Law', 'Seat' Or 'Venue' If Intent To Refer Dispute To Private Tribunal Is Clear: Calcutta HC

The Calcutta High Court bench of Justice Shampa Sarkar has held that for an arbitration agreement to be binding, neither the applicable law nor the seat or venue needs to be mentioned. As long as the clause indicates that the parties had agreed and there was a meeting of minds to refer any dispute to a private tribunal for adjudication of the disputes, the clause would constitute...

Arbitral Awards Can Be Granted On The Basis Of Evidentiary Admissions: Delhi High Court

The Delhi High Court bench of Justice Prateek Jalan has observed that the power to pass an award on admissions is wide, and evidentiary admissions (admissions contained outside pleadings) can also form the basis of an arbitral award. The Court observed that while it is true that admissions in pleadings are placed on a higher footing to the extent that they may require nothing more for...

Arbitration Clause Cannot Be Invoked Again Over Matters Which Have Already Been Adjudicated: Karnataka High Court

The Karnataka High Court has said the Arbitration clause in the lease agreement cannot be invoked for matters that have already been adjudicated upon and concluded by both the Arbitral Tribunal and the competent courts.Justice Sachin Shankar Magadum held thus while dismissing a petition filed by Starlog Enterprises Limited, who had approached the court praying for the appointment of a...

[Arbitration Act] To Prove Corruption Of The Arbitrator, It Should Be Evident From The Award Itself That He Tried To Curb The Course Of Justice

The Calcutta High Court Bench of Justice Shampa Sarkar has observed that if the subject matter of the arbitral proceedings or making of the award was affected or induced by fraud or corruption, then an unconditional stay of award can be granted. However, such corruption must be prima facie evident from the award itself and an honest mistake or erroneous application of law by...

LLP Can Be Bound By Arbitration Clause Despite Not Being Signatory To LLP Agreement: Bombay High Court

The Bombay High Court bench of Justice Somasekhar Sundaresan has held that the mere fact that an LLP is not a signatory to an LLP Agreement does not, by itself, preclude it from being a party to arbitration proceedings initiated between Partners under the arbitration clause of such an agreement. The Court observed that an LLP is not a “third party” to its LLP Agreement but an...