Recently, the Delhi High Court refused to hold a third-party funder liable for furnishing security in enforcement of a foreign award, ruling that the funder — not being either a party to the arbitration agreement, the arbitration, or the eventual award — could not be “mulcted with liability, which they have neither undertaken nor are aware of”. Continue Reading Third party Funding – A funder remains a ‘Third Party” and not a ‘Party’ to the arbitration or award
The issue of enforceability of an arbitration clause contained in an unstamped/ insufficiently stamped agreement has been the subject of various judicial pronouncements. Conflicting decisions have been delivered by various High Courts and even the Supreme Court (“SC”) did not lay down a conclusive position. Recently though, a five judge bench of the apex court, through its judgment in N.N. Global Mercantile Private Limited v. Indo Unique Flame Limited (“NN Global”), finally settled the law on enforceability of arbitration agreements contained in unstamped/ insufficiently stamped arbitration agreements.Continue Reading Enforceability of an Unstamped Arbitration Agreement
Interim measures act as significant procedural safeguards in ensuring the efficacy of the arbitration process. They serve to protect the rights of parties from the inception of the dispute till the execution of the final award. In India, interim measures may be granted in three stages i.e. before the commencement of arbitration proceedings, during the pendency of arbitration proceedings and after the passing of the arbitral award, but before its enforcement.Continue Reading Section 9(2) of The Arbitration and Conciliation Act, 1996: A Ticking Clock on Invocation of Arbitrations in India
The Supreme Court of India upheld the power of an arbitrator to grant ‘interest on interest’ or compound interest in its recent judgement in UHL Power Company Limited v State of Himachal Pradesh. Placing reliance on its earlier decision in Hyder Consulting (UK) Limited v. Governor, State of Orissa, the Court has held that the terms of Section 31(7) of the Arbitration and Conciliation Act, 1996 (“Act”), are explicit in granting an arbitral tribunal the power to award interest on the “sum” directed to be paid under an arbitral award, which is inclusive of the interest awarded thereunder.Continue Reading Awarding Interest on Interest: A three Judge Bench of the Supreme Court Upholds the Law
The fiduciary relationship between a director and the company is among the foremost principles of company law, which was first enshrined by common law courts of equity. The Supreme Court of India (“SC”) first recognised this common law principle in its celebrated judgment in the Nanalal Zaver case, which noted that directors can be considered as “trustees” of the company, and “must exercise their powers for the benefit of the company and for that alone”.Continue Reading Dilemma of a Nominee Director on the JV Company’s Board – Is there a conflict in his fiduciary duties?
There are only a few sections in the Arbitration and Conciliation Act, 2016 (“Act”), in which Court’s reference or assistance is invited post commencement of arbitration and constitution of the arbitral tribunal.Continue Reading Scope of judicial interference – Order passed by an Arbitral Tribunal under Section 27 of the Arbitration and Conciliation Act, 1996