Arbitration – Applicability of Limitation Act – The Supreme Court held that the provisions of the Limitation Act, 1963 apply to arbitration proceedings initiated under Section 18(3) of the MSMED Act, 2006. This is in line with Section 43 of the Arbitration and Conciliation Act, 1996, which extends the Limitation Act to arbitrations as it applies to court proceedings [Paras 18-19].
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Arbitration and Conciliation Act, 1996 – Section 31(7) – Interest on Delayed Payment – The appellant was awarded a contract for upgrading a State Highway and sought interest on delayed payments as per the agreement. The agreement contained provisions for interest but did not specify the rate for local currency payments. The Tribunal awarded interest, but the Arbitration Court and...
Arbitration Law – Seat of Arbitration – Change of Venue – Mutual Agreement – Supreme Court held that by mutual agreement of the parties, the venue of arbitration can be changed, and this change constitutes a change in the seat of arbitration – Once the seat is designated, it is akin to an exclusive jurisdiction clause, vesting exclusive jurisdiction with the courts at...
Arbitration – Appointment of Arbitrator – Novation of MoU by SHA – Whether the MoU has been superseded by the SHA requires detailed consideration – Section 11 court’s jurisdiction limited to prima facie review – Arbitration clause in MoU cannot be negated without thorough analysis – Appeal allowed, parties referred to arbitration [Paras 1-9].
Scope of S...
Arbitration and Insolvency – Section 7 of IBC and Section 8 of Arbitration Act – Petition under Section 7 of IBC filed by Kotak India Venture for initiation of Corporate Insolvency Resolution Process (CIRP) – Application under Section 8 of Arbitration Act filed by Indus Biotech to refer the matter to arbitration – NCLT allowed the application under Section 8, leading to dis...
Arbitration – Appointment of Arbitrator – Respondent invoked arbitration under Clause 12.3 of the Power Purchase Agreement (PPA) with Madhya Pradesh Electricity Board – Dispute over whether Section 11(6) of the Arbitration and Conciliation Act, 1996, or Section 86(1)(f) of the Electricity Act, 2003, applies – High Court appointed an arbitrator under Section 11(6) – He...
Arbitration – Appointment of Arbitrator – Limitation Period – Appeal against High Court's decision to appoint an arbitrator under Section 11 of the Arbitration and Conciliation Act, 1996 – Demand for arbitration was made on 07.11.2006 and reiterated on 13.01.2007 – Time began running from 12.02.2007 after no arbitrator was appointed – Subsequent final reject...
Limitation Act – Period of Limitation – Article 137 – The Supreme Court clarified that the period of limitation for filing an application under Section 11 of the Arbitration and Conciliation Act, 1996, would be governed by Article 137 of the Limitation Act, 1963. The period of limitation will begin to run from the date when there is a failure to appoint the arbitrator. The court ...
Arbitration – Appointment of Arbitrator – Prima Facie Test – The Supreme Court held that a deeper consideration of whether an arbitration agreement exists between the parties must be left to an arbitrator who is to examine the documentary evidence produced before him in detail after witnesses are cross-examined. The Court set aside the Delhi High Court's judgment insofar as i...
Arbitration – Jurisdiction – Section 2(1)(f) Arbitration Act – International Commercial Arbitration – High Court's jurisdiction questioned – Transaction between parties had international flavour due to the respondents being US nationals and habitually resident there – High Court had no jurisdiction to appoint arbitrator – Appeal allowed [Paras 7-16].
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