As per the latest statistics available on the National Judicial Data Grid, impending cases before the District & Taluka Courts[1] stand at over 40 million, the backlog waiting to be heard at various High Courts[2] is close to 5.9 million, and the pending case inventory before the Hon’ble Supreme Court of India[3] totals approximately 71,000.
The increased sophistication with which mammoth corporates, mid-segment businesses and even small & gig economy players conduct their businesses today has bred a trusting atmosphere in which entities are willing to accept amicable forms of dispute resolution, such as mediation, instead of turning to traditional litigation. Commercial entities are benefited from this shift since it helps them to maintain a healthy business relationship with their contemporaries even in the face of commercial disputes that may arise in the course of business, without having to compromise on confidentiality or reputation.
Continue Reading Compulsory Pre-Litigation Mediation for Commercial Suits – A Boon or a Bane?
With increased incidences of trade wars between business rivals through commercial advertising in print and electronic media, there is an apparent need to identify the threshold at which the publication of a certain advertisement becomes defamatory or disparaging to another’s product. The Apex Court has declared that the publication of commercial advertisements forms a part of ‘commercial speech’ protected under Article 19(1)(a) of the Constitution.[1]
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[1]. Placing reliance on its earlier decision in Hyder Consulting (UK) Limited v. Governor, State of Orissa[2], the Court has held that the terms of Section 31(7)[3] 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.
The Supreme Court has, in its recent judgment of Government of India v. Vedanta Limited & Ors.[1], settled the law relating to limitation for filing petitions for enforcement and execution of foreign awards in India. The Court held that petitions seeking enforcement/execution of foreign awards are required to be filed within three years from the date when the right to apply accrues and in the event there is any delay in filing such petitions, the same can be condoned under Section 5 of the Limitation Act, 1963 (“Limitation Act”).
Continue Reading The Final Word on the Limitation Period for Enforcement of Foreign Awards
Judicial time is precious and ought to be employed in the most efficient manner possible. Sham litigations are one such menace that not only waste the time of the courts, but also cause unwarranted prejudice and harm to parties arrayed as defendants in such litigations, thereby defeating justice. In order to deal with such a menace, the Code of Civil Procedure, 1908 (“CPC”), under Order VII Rule 11[1] (“O7 R 11”) provides litigants the option to pursue an independent and special remedy, empowering courts to summarily dismiss a suit at the threshold, without proceeding to record evidence, and conducting trial, on the basis of the evidence adduced, if it is satisfied that the action should be terminated on any grounds contained in this provision.
Recently, the Hon’ble Supreme Court of India (“SC”) in the case of Dahiben v. Arvindbhai Kalyanji Bhanusali[2] (“Case”), while dealing with an appeal against an order allowing rejection of a suit at the threshold, had occasion to consider various precedents, discussing the intent and purpose of O7 R11, while setting out the principles in relation to the same.
Continue Reading Supreme Court sets out object and purpose of Order VII Rule 11 of the Code of Civil Procedure, 1908
Recently, the Hon’ble High Court of Delhi (“Court”) in Gammon India Ltd. and Anr. v. National Highways Authority of India[1], had the occasion to opine on the scourge of multiplicity of arbitral proceedings while dealing with a petition under Section 34 of the Arbitration and Conciliation Act, 1996 (“Act”) wherein the objections raised were primarily based on the findings of a subsequent award. In dealing with the issues before it, the Court revisited various judicial precedents while setting out the principles to be considered when referring multiple disputes arising out of the same agreement to arbitration.
Continue Reading Multiplicity of proceedings defeats the purpose of alternate dispute resolution: Delhi high court
Introduction:
This article analyses the legal basis and the genesis of the power of an arbitrator to recall its order of termination of proceeding on account of default of the Claimant.
India seated arbitral proceedings, whether ad-hoc or institutional, are governed by the Arbitration and Conciliation Act, 1996 (hereinafter referred to as the Act), which is based on the UNCITRAL Model Law on International Commercial Arbitration, 1985 (UNCITRAL Model Law). Whilst arbitrators are not bound by the Code of Civil Procedure, 1908 (CPC) or the Indian Evidence Act, 1872[1], they is usually guided by the broad principles enshrined in the said enactments, while conducting the arbitral proceedings. In this regard, it is pertinent to note that under Order IX Rule 13 of CPC, the Court has power to recall its order. Under the said rule, if the Court is satisfied that summons was not duly served on the defendant, or that there was sufficient cause for defendant’s failure to appear when the suit was called on for hearing, the Court is empowered inter-alia to pass an order setting aside an ex- parte decree that may have been passed against the defendant.
Change is inevitable. Growth is optional.
– John Maxwell
Covid-19 has seen the legal landscape leapfrog into digital courts, electronic filings and asynchronous video hearings. The change has been fundamental and deep deliberations are currently underway for the systemic adoption of a new normal. Such a material shift often facilitates rapid adoption of other innovations that were hitherto stuck at the threshold of a conservative mindset. We believe that Third Party Funding of litigation is one such legal innovation that will now come of age in India.
Continue Reading Cash constrained and need to litigate? Third Party Funding may be the solution
The Consumer Protection Act, 1986 (read with the rules and regulations framed thereunder) (hereinafter referred to as the “Act”) was enacted with the objective of providing better protecting the interests of consumers. Towards this end, the Act provides for the establishment of consumer councils and other authorities for settlement of consumer disputes and for matters connected therewith. The Act is a composite and complete code in itself, providing for exhaustive substantive and procedural provisions in relation to the redressal of consumer disputes. For speedy redressal of consumer disputes, the Act provides for setting up of quasi-judicial machinery at the District, State and Central Level (“Dispute Redressal Authorities”). These quasi-judicial authorities are creatures of the statute and have wide powers under the Act, to inter alia grant reliefs of a specific nature and to award, wherever appropriate, compensation to consumers.
Continue Reading Extent of applicability of Code of Civil Procedure, 1908 to proceedings under the Consumer Protection Act, 1986