Arbitration

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Supreme Court affirms arbitrators’ power to implead non-signatories: Another pro-arbitration ruling or a step too far?

In Adavya Projects Pvt. Ltd. v M/s Vishal Structurals Pvt. Ltd.[1](“Judgment”), the Supreme Court of India (“Court”) has held that the arbitral tribunal has the power to implead parties to arbitration proceedings even where the said parties were neither issued an arbitration notice nor made party to court proceedings seeking appointment of arbitrators. The Judgment is significant because it holds that even if the claimant issues an arbitration notice to only one counterparty initially, it can subsequently include additional counterparties when filing its statement of claim before the arbitral tribunal. The Judgment reconciles the divergent views taken by the Delhi High Court[2] and the Bombay High Court[3] on the issue, but the implications for additional counterparties, who may be joined after the arbitral tribunal has been constituted, could be significant.Continue Reading Supreme Court affirms arbitrators’ power to implead non-signatories: Another pro-arbitration ruling or a step too far?

Introduction

The Supreme Court of India (“SC”) in its landmark decision in Arif Azim Co. Ltd. v. Micromax Informatics FZE[1] (“Arif Azim”)[2] has once again reiterated the distinction between ‘seat’ and ‘venue’ in an arbitration agreement and its jurisdictional implication. The judgment addresses the contentious issue of whether a location designated in an arbitration agreement serves merely as ‘venue’ (a place where proceedings may occur) or as juridical ‘seat’ (which grants a court jurisdictional oversight). This distinction has immense implications, especially for cross-border commercial agreements, where different interpretations can lead to divergent legal outcomes.Continue Reading Decoding Supreme Court’s Landmark Decision on ‘Seat’ vs. ‘Venue’ in Arbitration

The Evolving Landscape of Pre-Reference Interest in Indian Arbitration Regime

The recent ruling by the Supreme Court of India in Pam Developments Private Limited v. The State of West Bengal & Anr.[1] has reignited discussions on awarding pre-reference interest in arbitration proceedings. The case had arisen from a dispute over delays in a road construction project. Marking a significant development in the evolution of the Indian arbitration law, particularly on granting interest, the Court upheld the arbitrator’s authority to award interest on the awarded sum from the date of the cause of action until the date of the award, even when the contract was silent on the matter. While analysing the Pam Developments case, this blog delves into the nuances of pre-reference interest in light of the existing legal framework and relevant jurisprudence.Continue Reading The Evolving Landscape of Pre-Reference Interest in Indian Arbitration Regime

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]

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

Deciphering Court Fee Refunds: A Comparative Analysis of Settlement via ADR v. Private Settlement

Introduction

In the Indian jurisprudence, the levy of court fee is inter alia sanctioned by the Court Fees Act, 1870 (“Court Fee Act”) for the purpose of instituting a suit or claim by a party to the matter or litigation. The payment of court fee is a condition precedent for seeking the aid of the court. The amount to be paid as court fee is prescribed by law and until the pre-determined amount is paid, the litigant cannot be heard, save with the leave of the court. However, if the parties to a suit come to a mutual understanding to resolve the dispute amicably, the law also prescribes for a procedure for providing a refund of the previously paid court fee by the litigant. The only remaining question that begs determination is when and how much of the court fee will be refunded to the litigant.Continue Reading Deciphering Court Fee Refunds: A Comparative Analysis of Settlement via ADR v. Private Settlement

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

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.Continue Reading Obviating Hurdles for Swifter Execution of Arbitral Awards

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

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