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Obviating Hurdles for Swifter Execution of Arbitral Awards

Context

In India, execution of decrees is governed by the Code of Civil Procedure, 1908 (‘CPC’), and execution of arbitration awards is governed by the Arbitration and Conciliation Act, 1996 (‘1996 Act’), and the CPC. For the purposes of enforcement, both domestic and foreign awards (recognition and enforcement thereof) are treated as decree of Court. This legal fiction also applies to consent awards, which are obtained after settlement is entered between parties. Domestic awards, which are basically India-seated arbitral awards, are governed by Part I of the 1996 Act, while foreign awards, which are foreign seated arbitral awards, are governed by Part II of the 1996 Act.

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Big win for PSBs: SC upholds arbitral award awarding damages for breach of substitution agreement, asks state agency to compensate lenders in full

The Hon’ble Supreme Court vide an order dated December 01, 2023, dismissed Special Leave Petition (Civil) No. 19675 of 2023 (“SLP”), filed by Haryana State Industrial and Infrastructure Development Corporation (“HSIIDC”), a state government agency, against concurrent judgments of the Hon’ble Delhi High Court, upholding an arbitral award rendered in favour of a consortium of public sector banks, led by IDBI Bank Limited (“Senior Lenders”). The Ld. arbitral tribunal, comprising Hon’ble Justice (Retd.) R M Lodha, former Chief Justice of India, Hon’ble Justice (Retd.) K S P Radhakrishnan and Hon’ble Justice (Retd.) J Chelameswar (“Ld. Arbitral Tribunal”), finding favour with the case, pleaded on behalf of the Senior Lenders, awarded INR 1737.11 crore (plus additional interest and costs) as damages for HSIIDC’s breach of substitution agreement entered into between the Senior Lenders, HSIIDC and M/s KMP Expressways Limited, i.e. the concessionaire (“KMP”/ “Concessionaire”) (“Arbitral Award”).

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Jurisprudence around Grant of Interim Injunction in Defamation Suits in India

Introduction:

In civil proceedings in India, the standard for grant of interim injunction, is well established. The aggrieved party, seeking an injunction, must establish a three-part test to the satisfaction of a court of law, that is, (i) a prima facie case; (ii) balance of convenience; and (iii) irreparable harm/loss. While the three-part test remains applicable in defamation cases (including through offline and online media), for granting interim injunction, the threshold is slightly advanced due to the nature of dispute, rights involved, continuous cause of action (reputational damage if the publication is ex facie defamatory) and due to the advent of technology and widespread access to internet.

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Harshness of Consequences not a Ground to Read-Down a Provision: Supreme Court

Introduction:

The Hon’ble Supreme Court in Authorised Officer, Central Bank of India v. Shanmugavelu[1]adjudicated, inter alia, upon (i) whether the forfeiture of the earnest-money deposit under Rule 9(5)[2] of the SARFAESI Security Interest (Enforcement) Rules (“SARFAESI Rules”) can be only to the extent of loss or damages incurred by the Bank/secured creditor, in consonance with the underlying ethos of Sections 73 and 74 of the Indian Contract Act, 1872 (“Contract Act”)? In other words, whether, the forfeiture of the entire earnest money deposit under the SARFAESI Rules amounts to unjust enrichment?; and (ii) whether the principle of “reading down” of a provision should be employed even in situations where the provision, in its plain meaning, is unambiguous and valid, but results in an allegedly ‘harsh’ consequence.

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Can Directors Be Made Parties to Arbitration Proceedings Following the Underlying Rationale of Group of Companies Doctrine? Delhi High Court Explains

Introduction

Agreement to arbitrate – through a clause in a master or a separate agreement – forms the crux of arbitration. Processes like arbitration depend entirely on parties’ written consent to arbitration agreements. Great importance is attached to party autonomy – autonomie de la volonté.[1] This age-old principle continues to be at the centre of any arbitration agreement; however, ascertaining the consent of a party, more specifically a non-signatory party, to an arbitration agreement has been up for debate.

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Pending Section 37 Appeal under Arbitration Act: Not a Legitimate Ground for Entertaining Belated Claim under IBC

The Hon’ble Supreme Court in the landmark RPS Infrastructure Ltd vs. Mukul Sharma[1] judgement, once again delved into the issue of claims being made beyond the statutorily prescribed timelines in a Corporate Insolvency Resolution Process (“CIRP”). In this case, an appeal under Section 37 of the Arbitration and Conciliation Act, 1996 (“Arbitration Act”), was pending against a Section 34 award and the Appellant submitted a claim for the same subsequent to the committee of creditors (“COC”) approving the resolution plan.

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Tests “Public Servants” must pass to claim protection under Section 197 of Cr.P.C. and is there a silver lining?

The Dilemma:

If an investigating authority intends to investigate a public servant[1], the authority has to mandatorily secure appropriate sanction from a competent authority[2] to even begin the investigation. Particularly, when the allegations pertain to offences punishable under the Indian Penal Code, 1860 (“IPC”), the investigating authority must secure the sanction under Section 197 of Code of Criminal Procedure, 1973 (“CrPC”), from the competent authority and when the allegations pertain to offences punishable under the Prevention of Corruption Act, 1988 (“PC Act”), sanction must be secured under Section 19 of the PC Act. Often, the alleged act under investigation attracts punishment or penalty under both IPC and PC Act.

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An Analysis of Limitation for Appointment of Arbitrator Under Section 11 of the Arbitration & Conciliation Act, 1996

Introduction

In order to foster quick resolution, efficiency and flexibility are the cornerstones of arbitration. The Arbitration and Conciliation Act, 1996 (“the Act”) [1], provides for strict limitations at most stages of the arbitral process. Naturally, Section 11 with its glaring lack of prescribed limitation at the stage of appointment appears conspicuous and almost at odds with the scheme of the Act.

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Section 8 of the Arbitration & Conciliation Act, 1996, Does Not Envisage Making of a Separate Application If Due Objection is Made Before the Court to its Jurisdiction

The Hon’ble Delhi High Court in Madhu Sudan Sharma & Ors. v. Omaxe Ltd.[1]recently held that once a party has taken objection in its written statement to the jurisdiction of the Court to entertain the suit due to the presence of the arbitration clause between the parties, it would amount to sufficient compliance of Section 8 of the Arbitration & Conciliation Act, 1996 (“the Act”). The Court also held that once a party extracts an arbitration clause in its written submission to object to the jurisdiction of the Court, a separate application under Section 8 of the Act would not be necessary.

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EU’s Anti-Corruption Package: Insights and Recommendations for Indian Businesses

Corruption and bribery[1] are often a cross-border phenomena. Accordingly, since the early 1990s, various countries around the world have joined global efforts to combat corruption collectively. Recently, European Union (“EU”) policymakers have decided to take that combat to the next level, increasing the collaboration between European Member States, and by harmonizing the European anti-bribery regime.

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