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All Orders terminating proceedings are not Awards - Delhi HC sets the record straight

The issue of whether simplicitor orders terminating an arbitral proceeding is an award under the Arbitration and Conciliation Act, 1996 (“Arbitration Act”), has been a question that has been plaguing various Courts in India for a while now. The issue is crucial in nature, as it determines the remedy of a party aggrieved by such an order. While some Courts have taken the view that such an order is an award appealable under Section 34 of the Arbitration Act, others have not. This ambiguity is a cause of concern for litigants since it delays the entire time bound arbitral process intended under the Arbitration Act and leaves the litigant in a lurch. However, the Hon’ble High Court of Delhi (“Delhi HC”) in PCL SUNCON v National Highway Authority of India[1] (“PCL SUNCON Case”) has addressed this issue and cleared the said ambiguity to a great extent.
Continue Reading All Orders terminating proceedings are not Awards: Delhi HC sets the record straight

MULTIPLICITY OF PROCEEDINGS DEFEATS THE PURPOSE OF ALTERNATE DISPUTE RESOLUTION - DELHI HIGH COURT SMM

Introduction

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

The Covid-19 pandemic has affected the society in an unanticipated and unprecedented way. To contain its spread, the Ministry of Home Affairs (MHA), Government of India vide its order dated March 24, 2020 directed closure of commercial and private establishments for a period of twenty one days. Immediately thereafter, the Ministry of Road Transport & Highways (MoRTH) issued an order dated March 25, 2020 directing the National Highways Authority of India (NHAI) to take action as per the said MHA order (including suspension of tolling operations on the toll plazas) and added that prevailing condition may be treated as ‘force majeure’ under the concession agreements executed by NHAI with the developers.

MoRTH thereafter directed NHAI to resume toll collections from April 20, 2020. However, the suspension of toll operations until April 20, 2020, the lockdown period thereafter and the steep fall of the traffic plying on the national highways, has significantly impacted the entire transportation industry, exposing developers to high risk and financial distress with no visibility of normalcy in the near future.Continue Reading Covid-19: Bumpy roads ahead for Highway Sector

 Toll Operate and Transfer model - NHAI

With a view to monetise the operational national highways, the National Highway Authority of India (NHAI) introduced the Toll Operate and Transfer (TOT) model for partnership with private developers in the road sector. Under this model, NHAI passes on the toll collection rights and operation and maintenance obligations for 30 years to the private developer against payment of upfront, one-time, lump sum concession fees quoted by the private developer as part of the comprehensive bidding process. Projects under this model are awarded as a bundle of operational national highways, which allows the investor to offset the risks of one project against another. Since existing and operational roads are auctioned under the TOT model, it does not need developers with construction skills to participate.
Continue Reading Toll Operate Transfer Model – Gateway to New Opportunities in Highway Sector