Arbitration

Law Governing Arbitration Agreement: Which Way are Indian Courts Headed?

The process and outcome of arbitration is largely governed by the following laws: (a) law governing the contract referring to the substantive law that parties choose to govern the main contract and any disputes arising thereunder; (b) law governing the arbitration agreement referring to the law that parties choose to govern arbitration agreement (it governs issues like validity, arbitrability, etc.); (c) law governing conduct of arbitral proceedings and forum for related court proceedings (i.e. law of the seat) and (d) Institutional rules (if chosen), governing the form and procedure of arbitration.Continue Reading Law Governing Arbitration Agreement: Which Way are Indian Courts Headed?

Can damages be awarded based on a guess?

A division bench of the Delhi High Court in Cobra Instalaciones Y Servicios, S.A. & Shyam Indus Power Solution Pvt Ltd. v. Haryana Vidyut Prasaran Nigam Ltd. (“HVPNL”)[1] (“Cobra Case”)upheld the quantification of damages by an arbitrator through “honest guesswork” or a “rough and ready method” since it was difficult to quantify the precise amount of loss suffered by the party.

In this blog, we examine the rough and ready approach under Indian law for quantifying damages.Continue Reading Can damages be awarded based on a guess?

Arbitrability of Disputes: Indian Jurisprudence

[Continued from Part I]

The Vidya Drolia Case: Redefining Arbitrability

In 2019, aiming to solve the conundrum and marking a significant milestone in Indian arbitration, the Supreme Court’s ruling in Vidya Drolia and Ors v. Durga Trading Corporation,[1] (“Vidya Drolia”) laid down the contours of arbitrability. While analysing thearbitrability of Landlord-Tenant disputes governed by the Transfer of Property Act, 1882 (“TPA”), the Supreme Court elucidated that the mere existence of a special statute dealing with certain disputes does not ipso facto render them non-arbitrable, thereby widening the scope of arbitrability and increasing the access to arbitration in complex legal contexts. Continue Reading Arbitrability of Disputes: Indian Jurisprudence (Part 2)

Arbitrability of Disputes: Indian Jurisprudence [Part I]

Introduction

Arbitrability plays a pivotal role in dispute resolution, determining if a particular dispute can be resolved through arbitration. Several key factors, including, among other things, procedural/curial laws, governing law and actual text of the arbitral agreements, identity of the parties, etc., help establish arbitrability.[1] Continue Reading Arbitrability of Disputes: Indian Jurisprudence [Part I]

The “modification” conundrum: Sticking to the path of least interference – Part I

Introduction

In matters of arbitration, courts are ordinarily required to adopt a hands-off approach while scrutinizing arbitral awards. This jurisprudence has evolved to a point where minimal interference with awards is seemingly the principle guiding courts in India. Against this backdrop, the Supreme Court (“SC”) is going to consider the question whether the powers under Section 34 of the Arbitration and Conciliation Act, 1996 (the “Act”), extend to the modification of arbitral awards or are limited only to the setting aside of arbitral awards. Central to this question is the role of the courts as envisaged under the Act. Continue Reading The “modification” conundrum: Sticking to the path of least interference – Part I

Fraud-Related Disputes Arbitrable: Bombay High Court

Arbitrability of a dispute is a key factor in any arbitration, as it establishes the jurisdictional reach of an arbitral tribunal. In Booze Allen and Hamilton Inc. v. SBI Home Finance Ltd.,[1] the Supreme Court stated that the disputes dealing with rights in personam are arbitrable, but those pertaining to rights in rem are not as they can affect the public.Continue Reading Fraud-Related Disputes Arbitrable: Bombay High Court

Unravelling the Distinction between ‘Reference to’ and ‘Incorporation of’ Arbitration Clauses

Introduction

While entering into a transaction, companies often invoke multiple standard terms from other agreements, instead of reproducing all applicable terms in a single contract. Such clauses are not set out in the main contract signed by the parties, but are instead found in separate, pre-existing documents that have been referred to in the main contract, by which the parties agree that the standard terms that have been mentioned, should be considered a part of the main contract. This practice enables faster and smoother implementation of contracts and allows some standard clauses to remain unchanged, thus providing greater certainty to business. However, if the arbitration clause itself is located in a secondary document, it might lead to a dispute (between the parties) regarding the appropriate dispute resolution procedure.Continue Reading Unravelling the Distinction between ‘Reference to’ and ‘Incorporation of’ Arbitration Clauses

Demystifying Deadline Dilemmas: Analysing the limitation period of Section 11(6) Petitions in Arbitral proceedings in India

INTRODUCTION

Superior courts in India have ratified the stringent deadlines for the various stages in arbitration proceedings, aiming to position India as an arbitration hub. However, it is crucial to establish safeguards to prevent delays in the adjudication process from discouraging the parties’ decision to engage in arbitration. The absence of a prescribed limitation period in certain key provisions of the Arbitration and Conciliation Act, 1996 (“A&C Act”), could be a contributing factor to some of these delays.Continue Reading Demystifying Deadline Dilemmas: Analysing the limitation period of Section 11(6) Petitions in Arbitral proceedings in India

Writ Jurisdiction over Arbitral Proceedings an ‘Exceptional Rarity’: Delhi High Court Reiterates

The Indian Constitution bestows upon the High Courts “extraordinary writ jurisdiction”. While Article 226 empowers Courts to protect and enforce fundamental as well legal rights, Article 227 confers on them the power of superintendence over all courts and tribunals within their jurisdiction.Continue Reading Writ Jurisdiction over Arbitral Proceedings an ‘Exceptional Rarity’: Delhi High Court Reiterates

Final Word on Enforceability of Unstamped Arbitration Agreements

“It [law of arbitration] is to be expeditious where the law is slow, cheap where the law is costly, simple where the law is technical, a peacemaker instead of a stirrer-up of strife.”[1]

Are arbitration clauses in unstamped or inadequately stamped agreements enforceable? This is a question that has been under legal scrutiny and has seen conflicting views from various constitutional benches of the Supreme Court for over half a decade.Continue Reading Final Word on Enforceability of Unstamped Arbitration Agreements