Arbitration – Pendente Lite Interest – Clause barring interest in contract – Arbitrator cannot award pendente lite interest if contract explicitly bars it – Section 31(7)(a) of the Arbitration and Conciliation Act, 1996 emphasizes parties' agreement over arbitrator’s power – High Court's rejection of pendente lite interest upheld [Paras 1-23].
Contrac...
Arbitration – MSMED Act – Jurisdiction and Procedure – Dispute regarding payment for supply of TMT bars – Facilitation Council dismissed proceedings citing lack of jurisdiction – High Court dismissed writ petition suggesting remedy under Section 34 of Arbitration Act – Supreme Court held Facilitation Council did not follow proper procedure under Section 18 of MS...
Arbitration – Appointment of Arbitrator – Parties agreed on existence of arbitration agreements – Disputes arose under Construction Management Agreements – Respondents denied arbitrable dispute under said agreements, claimed it arose under Share Purchase Agreements – Supreme Court held disputes fell under CMAs' arbitration clauses – Narrow scope of review un...
Arbitration – Extension of Time – Arbitrator's Mandate – Sole Arbitrator continued arbitration proceedings and passed the award within the extended period – High Court set aside the award citing misconduct as Arbitrator continued post-retirement – Supreme Court held Arbitrator's mandate valid until proceedings conclude, absent contrary provision – Extens...
Arbitration Law – Interim Measures – Appeal against High Court’s order directing Commercial Court to adjudicate applications under Section 9 of the Arbitration Act post-constitution of an Arbitral Tribunal – Court’s power to entertain applications under Section 9(1) once the Tribunal is constituted – Supreme Court held Section 9(3) restricts court's role unl...
Arbitration – Setting Aside of Award – Patent Illegality and Public Policy – The Supreme Court held that the Division Bench of the High Court erred in setting aside the arbitral award. It emphasized that the High Court's intervention was based on reappreciation of evidence, which is impermissible under Section 34 of the Arbitration and Conciliation Act, 1996. The court clarif...
Contract Law – Payment Disputes – Jurisdiction of Writ Court – The Supreme Court held that the Gauhati High Court erred in directing payment to the respondent based on the Joint Survey Report for road construction without considering the disputed facts about the authenticity of the report and the quantum of work done. The Court emphasized that such disputed questions of fact shou...
Arbitration – Bank Guarantee – Refusal to Accept – High Court refused to accept irrevocable Bank Guarantee of Rs. 30 Crores issued by ICBC, a Scheduled Bank included in the Second Schedule of the Reserve Bank of India Act – High Court insisted on a fresh Bank Guarantee from a "Scheduled Indian Bank" – Supreme Court held that the High Court erred in its direc...
Arbitration – Arbitral Award – Patent Illegality – Judicial Intervention – Section 34 of Arbitration and Conciliation Act, 1996 – Scope of interference limited to grounds under Section 34 – Judicial intervention on merits of award not permissible – Award can be set aside if it violates “public policy of India” or principles of natural justice &...
Arbitration – Power to Modify Arbitral Award – Section 34 of Arbitration Act – Supreme Court held that Section 34 does not confer any power to modify an arbitral award – The provision only allows for setting aside the award on specific grounds, reflecting a deliberate legislative policy of minimal judicial intervention – Judgments modifying awards by courts under Arti...