Arbitration Roundup June 2024; Update yourself with all the latest Arbitration law updates in June 2024

Can Arbitration proceedings be terminated on claimant’s failure to request Arbitral Tribunal to fix a date for hearing? Supreme Court answers

In a civil appeal concerning the issue about the legality and validity of the order of termination of the arbitral proceedings under Section 32(2)(c) of the Arbitration and Conciliation Act, 1996 (‘the Arbitration Act’) passed by the Arbitral Tribunal, the division bench of Abhay S. Oka and Pankaj Mithal, JJ. Held mere absence from proceedings or failure to participate does not, per se, amount to abandonment. Only if the established conduct of a claimant is such that it leads only to one conclusion that the claimant has given up his/her claim, can an inference of abandonment be drawn. Merely because a claimant, after filing his statement of claim, does not move the Arbitral Tribunal to fix a date for the hearing, it cannot be said that the claimant has abandoned his claim, as the Arbitral Tribunal has a duty to fix a date for a hearing. Read More

Court’s power under Section 37 of the Act limited to reviewing whether arbitral award should be set aside under Section 34 of the Act: Orissa High Court

In an appeal filed under Section 37 of the Arbitration and Conciliation Act, 1996 (the Act) against the judgment passed by the District Judge denying to set aside the Arbitral Award passed in favor of respondent-claimant, D. Dash, J., upheld the arbitral award and stated that the grounds for setting aside an award include patent illegality, but this must be a fundamental error affecting the root of the matter. Read More

Court is empowered to extend the mandate, even after expiry of the mandate of the arbitral tribunal: Delhi HC

In an application filed by counter-claimant under Section 29-A of the Arbitration & Conciliation Act, 1996 (‘Arbitration Act’) read with Section 151 of the Code of Civil Procedure, 1908, Manoj Jain, J., even though the arbitration proceedings should have been completed within 12 months of the completion of pleadings in the counterclaim, the Court was empowered to extend the mandate, even after expiry of the mandate of the arbitral tribunal. Read More

Appointment of Arbitrators Post-2015 Amendment must adhere to eligibility criteria regardless of contract execution and arbitration commencement dates: Delhi HC

A petition was filed under Section 14 read with Section 15 of the Arbitration and Conciliation Act, 1996 (‘Arbitration Act’) seeking substitution of the Sole Arbitrator as the Sole Arbitrator adjudicating the disputes between the parties was unilaterally appointed by the Respondent. Prathiba M Singh, J., held that notwithstanding the date of execution of the contract and the commencement of the arbitral proceedings, the appointment of an arbitrator by reasons of resignation/ withdrawal/ any other reason, after coming into force of the 2015 Amendment shall have to meet the test of eligibility in terms of Section 12 read with the Seventh Schedule of the Arbitration Act. Read More

No bar to invoke arbitration even if alternative remedy available under RERA Act: Gauhati High Court

In application under Section 11(6) of the Arbitration and Conciliation Act, 1996 (‘the 1996 Act’) for appointment of an Arbitrator in terms of the Arbitration Clause executed between the parties, and an Arbitral Tribunal made up of three Arbitrators were to be constituted. Michael Zothankhuma, J., held that arbitration could be invoked by a party, in spite of the availability of the alternative remedy provided under the provisions of the Real Estate (Regulation and Development) Act, 2016 (‘RERA Act’). Read More

Mere sending notice u/s 21 of Arbitration Act not sufficient; receipt of notice a prerequisite for commencement of proceedings: Delhi HC

In a petition under Section 11(6) of the Arbitration and Conciliation Act, 1996 (‘Arbitration Act’) for appointment of an arbitrator, Dinesh Kumar Sharma, J., dismissed the petition while holding that the mere issuance of notice under Section 21 of the Arbitration Act does not constitute service of the notice and observed that receipt of the notice by the respondent is mandatory to commence arbitration proceedings. Read More

Can arbitration proceedings act as a bar for proceedings under Section 7 of the IBC? Delhi HC answers

In a petition under Section 11(6) of the Arbitration and Conciliation Act, 1996, (‘Arbitration Act’) for appointing of an arbitrator, Neena Bansal Krishna, J., held that mere initiation of arbitration is no bar for corporate debtor to pursue remedies under Insolvency and Bankruptcy Code, 2016 (‘IBC’). Read More

Court only required to look into existence of arbitration clause at the stage of appointing arbitrator u/s 11 of Arbitration Act: Jharkhand HC

In an arbitration application filed by the Petitioner for appointment of sole arbitrator under Section 11(6) of the Arbitration and Conciliation Act, 1996 (‘the AC Act’) for resolution of disputes between the parties, Shree Chandrashekhar, ACJ., opined that under Section 11 of the AC Act, in cases where the parties did not agree to a procedure for appointment of an arbitrator for resolving the dispute on making an application by the aggrieved party, the power under Section 11(6) of the AC Act was exercisable by the Chief Justice of the High Court or a Judge nominated by the Chief Justice. Read More