Arbitration

An arbitrator is a creature of a contract and is, therefore, equally bound by it. The Supreme Court, in the recent judgement of Union of India vs. Manraj Enterprises[i], set aside an arbitral award wherein the arbitrator had awarded pendente lite and future interest on the amount awarded, inspite of a contractual bar. The Court, relying upon a catena of judgments dealing with the inherent powers of an arbitrator to award pendente lite and future interest under Section 31(7) of the Arbitration and Conciliation Act, 1996 (the 1996 Act), held that such powers are exercisable only in the absence of an agreement to the contrary.

Continue Reading The Power to Grant Interest Pendente Lite – Arbitrator Bound by the Agreement Between the Parties: The Supreme Court Reiterates

Arbitration

Post the 2015 Amendment, the powers of the Arbitral Tribunal under Section 17 of the Arbitration and Conciliation Act, 1996 (“Act”), are at par with and akin to the powers of the Court under Section 9 of the Act. Whilst the non-filing of the Statement of Claim did not serve as an impediment to the Courts granting interim reliefs under Section 9, the question on whether an Arbitral Tribunal is empowered to grant interim reliefs under Section 17 in the absence of a Statement of Claim remained unclear.

Continue Reading Statement of Claim not sine qua non to Filing an Application under Section 17

Arbitration Agreement

Background

Kompetenz-kompetenz, allowing the arbitral tribunal to rule on its own jurisdiction, is one of the fundamental principles of arbitration. In Indian arbitration law, this is captured in Section 16 of the Arbitration and Conciliation Act, 1996 (“Act”). This is further emphasised in Indian Farmer Fertilizer Cooperative Limited v. Bhadara Products (2018) 2 SCC 534 (“IFFCO Judgment”), wherein the Supreme Court has held that ‘jurisdiction’ mentioned in Section 16 has reference to three things: (1) existence of a valid arbitration agreement, (2) whether arbitral tribunal is properly constituted and (3) whether matters submitted to arbitration are in accordance with the arbitration agreement. Clearly, the existence of a valid arbitration agreement falls within the scope of jurisdictional matters to be determined by the arbitral tribunal.

Continue Reading Scope of Scrutiny of An Arbitration Agreement in a Section 9 Petition Filed before Commencement of Arbitral Proceedings

Interim Application Already Considered by Court

Introduction

Recently, the Supreme Court in Arcelor Mittal Nippon Steel India Ltd. v. Essar Bulk Terminal Ltd.,[1] (“Arcelor-Essar Judgment”) held that the bar on the Court from entertaining interim applications under Section 9(3) of the Arbitration and Conciliation Act, 1996 (“Act”) was applicable only if the application  had not been taken up for consideration at the time of the constitution of the Arbitral Tribunal. However, if the Court had heard the application even in part, and had applied its mind to it, it could decide to proceed with the adjudication of the same.

Continue Reading Interim Application Already Considered by Court? Section 9(3) of the Arbitration Act to Not Apply

Arbitrator’s power to recall its order of termination of arbitral proceeding- A tale of Dubiety - Part II

In Part I of this post, we inter-alia attempted to highlight the law (and perhaps a relevant counter perspective) in relation to the power of the arbitrator to recall its order of termination of arbitral proceedings passed under Section 25(a) of the Arbitration and Conciliation Act, 1996 (hereinafter referred to as the “Act”). In this post, we attempt to answer whether such a remedy would extend to termination of arbitral proceedings under Section 32(2)(c) of the Act, and other issues incidental thereto.
Continue Reading Arbitrator’s power to recall its order of termination of arbitral proceeding- A tale of Dubiety? (Part II)