Dispute Resolution

CAN A CHALLENGE TO AN ARBITRAL AWARD BE DISMISSED FOR NON-COMPLIANCE WITH CONDITIONS FOR STAY ON ENFORCEMENT?

An arbitral award can be challenged by filing an application under Section 34 of the Arbitration and Conciliation Act, 1996 (“Act”). Ordinarily, along with the application to set aside an arbitral award, another application is filed under Section 36(2) of the Act seeking a stay on the operation of the award. Prior to the amendment to the Act in the year 2015, mere filing of an application under Section 34 of the Act would lead to an automatic stay on the enforcement of the award. However, pursuant to the Arbitration and Conciliation (Amendment) Act, 2015, Section 36(2) was amended to state that filing of an application to set aside an arbitral award shall not by itself render the award unenforceable and a specific order of stay of operation of the award shall have to be granted on a separate application being made for that purpose. Upon the filing of a separate application, seeking a stay on the operation of the arbitral award, the court may grant the stay, while imposing certain conditions, as it may deem fit. These conditions could entail either furnishing a bank guarantee or depositing cash with the court, to secure the arbitral award. The form and quantum of the security depends on the facts and circumstances of each case and is typically driven by the financial wherewithal and the conduct of the judgment debtor.Continue Reading Can a Challenge to an Arbitral Award be Dismissed for Non-Compliance with Conditions for Stay on Enforcement?

The Bombay High Court was recently called upon to decide an application filed by Anupam Mittal (“Applicant”), the founder of shaadi.com, seeking to restrain Westbridge Ventures II Investment Holdings and other directors of People Interactive (India) Private Limited (“Respondents”) from enforcing an anti-suit injunction granted by the High Court of Singapore. The anti-suit injunction restrained the Applicant from proceeding with his oppression and mismanagement petition before the National Company Law Tribunal (“NCLT”) on the ground that parties had agreed to resolve their disputes via arbitration seated in Singapore and disputes pertaining to oppression and mismanagement were arbitrable under Singapore law.Continue Reading Party Autonomy Restrained? Dissecting Bombay High Court’s Anti-Enforcement Injunction Order in Anupam Mittal v. People Interactive (India) Pvt. Ltd.

Introduction

Dissolution of a Partnership under The Indian Partnership Act, 1932, “Partnership Act” can have far-reaching consequences, affecting not only the erstwhile partners but also related third parties. The process of dissolution involves activities such as settling of accounts, concluding of on-going business matters, discharging the Partnership firm’s liabilities and finally, distributing any remaining assets among the partners basis their respective shares. The Limitation Act, 1963 provides a period of three years from the date of dissolution within which  the parties can agitate their claims arising from the dissolution and winding up of the firm[1]. The period of limitation rests on the notion that the date of dissolution marks the conclusion of the firm’s winding-up process and settling of the rights and liabilities of the affected parties. However, is dissolution synonymous with winding up of the firm? Can erstwhile partners not have a right to agitate their claims post the period of three years if the process of winding-up could not be completed within the timeframe? Pertinently, through this blog, we aim to analyse whether any claims surviving the period of three years, which have been left unadjudicated are deadwood or can be brought under the period of limitation and give rise to a continuing cause of action.Continue Reading Stopping the clock on claims arising from dissolution of partnership firms

ASSAILING COMPOSITE DIRECTIONS ISSUED BY POLLUTION CONTROL BOARD UNDER AIR ACT AND WATER ACT

NGT’s jurisdictional powers

The National Green Tribunal Act, 2010 (“NGT Act”), established the National Green Tribunal (“NGT”) to inter alia adjudicate cases related to environment protection and enforcement of legal rights relating to the environment.

Section 14 of the NGT Act provides the NGT with original and subject matter jurisdiction to deal with all civil cases involving substantial question relating to protection of environment and enforcement of associated legal rights under the statutes enlisted in Schedule 1 of the NGT Act.Continue Reading Assailing composite directions issued by pollution control board under Air Act and Water Act

PMLA SECOND AMENDMENT RULES, 2023: PLUGGING THE LOOPHOLE

The Ministry of Finance issued a notification on September 04, 2023, to amend the Prevention of Money Laundering (Maintenance of Records) Rules, 2005 (“Rules”), to enhance clarity and stringency of money laundering prevention efforts. The amendment seeks to ensure stricter compliance by reporting authorities to keep a check on money laundering and terror financing.Continue Reading PMLA Second Amendment Rules, 2023: Plugging The Loophole

SUPREMACY OF THE IBC VIS-A-VIS THE ELECTRICITY ACT[1]

INTRODUCTION:

In a recent judgement of Paschimanchal Vidyut Vitran Nigam Ltd. v. Raman Ispat Private Ltd. and Ors. (being Civil Appeal No.7976 of 2019), the Hon’ble Supreme Court has held that Section 238 of the Insolvency and Bankruptcy Code, 2016 (“IBC/Code”) overrides the provisions of the Electricity Act, 2003, despite the latter containing two specific provisions being Section 173 and 174 which have overriding effect over all other laws.Continue Reading Supremacy of the IBC vis-a-vis The Electricity Act [1]

Unsettling the balance: analysing the Import of section 167(2) OF CRPC.

The debate around the interpretation of Section 167(2) of the Code of Criminal Procedure, 1973 (“CrPC”), as regards timing of police custody has reawakened since the Supreme Court in V. Senthil Balaji vs. State represented by Deputy Director & Ors.[1]; 2023 SCC Online SC 934(“Senthil Balaji Case”), sought to re-examine the position. In the course of assessing the import of Section 167(2) of CrPC, the Supreme Court has raised doubts on the otherwise settled position of law laid down in the Central Bureau of Investigation vs. Anupam J. Kulkarni[2];(1992) 3 SCC 141, later concurred by a Full Bench of the Supreme Court in Budh Singh vs. State of Punjab; (2000) 9 SCC 266. The Supreme Court has referred the matter to the Chief Justice of the Supreme Court for appropriate orders to form a larger bench.Continue Reading Unsettling the balance: Analysing the Import of Section 167(2) of CRPC.

Arbitrability of IP Disputes – A Step Forward?

Arbitration as a means of resolving commercial disputes has progressively become the default mechanism around the world, including in India. However, the public policy exception may be invoked to make certain subject matter inarbitrable. This article deals with one of these putatively inarbitrable areas in India: intellectual property and the reasoning of the Indian courts to render intellectual property disputes inarbitrable.Continue Reading Arbitrability of IP Disputes – A Step Forward?

EXISTENCE AND VALIDITY OF AN ARBITRATION CLAUSE: A DEEP DIVE INTO THE CHANGING PERSPECTIVE ON THE COURT’S INTERVENTION AT THE PRE-ARBITRAL STAGE: PART-II

Duro revalidated in Mayavati Trading

The Supreme Court in a three-Judge Bench decision of Mayavati Trading (P) Ltd. v. Pradyuat Deb Burman[i] (“Mayavati Trading”), considered the impending omission of Section 11(6A) of the Act vide the Amendment Act of 2019. It was conclusively stated that Section 11(6A) is confined to the examination of the existence of an arbitration agreement and is to be understood in the narrow sense as has been laid down in Duro. The Supreme Court also expressly overruled Antique Exports, recognising that its reasoning relied on the pre-amended position, i.e., before Amendment Act of 2015 introduced Section 11(6A).Continue Reading Existence and Validity of an Arbitration Clause: A Deep Dive into the Changing Perspective on the Court’s Intervention at the Pre-Arbitral Stage: Part 2