Last Updated on July 7, 2024 by Satish Mishra
Arbitration and Conciliation Act of 1996 governs the Arbitration in India which a popular alternate for dispute resolution. Arbitration Law has gained immense popularity in recent times.
Abstract:
With the advancement of society, discords were bound to arise and ingenious human minds have always looked out for the ways for settlement of disputes.
Introduction:
The world has experienced that adversarial litigation is not an ideal method of resolving disputes. The litigation is characterised by numerous and complex procedure.
It has been rightly observed by Justice DA Desai in Guru Nanak Foundation vs. Rattan Singh and sons:
Interminable, time consuming, complex and expensive Court procedures impelled jurists to search for an alternative Forum, less formal, more effective and speedy for resolution of disputes, avoiding procedural claptrap and this led them to Arbitration Act, 1940.
Also Read- Enforcement of Arbitral Awards
Arbitration in India is criticised mainly on interference by the courts. Despite its criticism, recent judicial pronouncements (2018-2019), indicate that judiciary in India is moving forward to pro arbitration stance:
Section 7
Whether arbitration agreement can be binding on non signatory to agreement?
Case name: Cheran Properties Limited v. Kasturi and Sons Limited and Ors.
Date of judgment: April 24, 2018
In this case, while deciding on the issue whether a non signatory party can be made bound by agreement. The apex court held that under certain situations, an arbitration agreement between two parties may operate to bind other parties, as well. The Factors such as the relationship of a non-signatory to a party which is a signatory to the agreement, the commonality of subject matter weigh in balance.
[Also See: RV solutions Pvt Ltd. Vs. Ajay Kumar dixit and ors.]
Incorrect reference to Arbitration Act, 1940 will not render entire arbitration agreement invalid
Also Read- Appointment of an Arbitrator
Case name: Purushottam s/o Tulsiram badwaik v. Anil and ors.
Date of judgment: May 2, 2018
In this case, the Court held that the High Court had erred in its decision to not refer the dispute for arbitration simply because the agreement referred to the 1940 Act even though the agreement was entered into after the commencement of the 1996 Act.
Section 8: Whether arbitration clause can oust jurisdiction of consumer forums?
Case name: M/s Emaar MGF Ltd. Vs. Aftab singh
Dated: 10.12.2018
It has been held that, amendments made in section 8 are sought to provide additional/special remedies, thus holding that complaints under COPRA,1986 can be proceeded with.
Section 9: S.9 of Arbitration act cannot bypass S.41 of Specific Relief Act.
Case name: Parsoli Motor Works (P) Ltd. v. BMW India P Ltd. 2018 SCC Online Del 6556
Dated: January 15, 2018
It has been held that injunctions which cannot be granted u/s 41 of SRA cannot be granted under S.9, of arbitration act.
Also Read- Types of Legal Notice
Section 11 Arbitration Clause to be construed Strictly
Case name: Oriental Insurance Company Limited v. M/s Narbheram Power and Steel Pvt. Ltd.
Dated: May 2,2018
The SC in this case held that an arbitration clause is to be strictly construed. Any expression in the clause must unequivocally express the intent of arbitration.
Other Reference Cases:
SP Singla Constructions Pvt. Ltd v. State of HP (appointment of arbitrator cannot be challenged)
Golden chariot recreations Pvt. Ltd v. Mukesh Panika and Ors. ( issuance of notice is mandatory)
Section 12:
Whether disclosing only major requirement of schedule VI of Arbitration Act,1996 and other relevant aspects of schedule would amount to improper disclosure?
Also Read- FREE LEGAL ADVICE IN CHANDIGARH, PANCHKULA, MOHALI, ZIRAKPUR
Case name: Goel constructions co.pvt ltd v ICAI, 2018
Dated: Nov 13, 2018
The court clarified that requirement of disclosure is necessary even if arbitrator is not disqualified under Schedule VI.
Section 14 & 15:
Case name : NHAI v. Gammon Engineers and contractor pvt. Ltd.
Dated: July 20,2018
It has been held that appointment cannot be accepted in part and court cannot rewrite the agreement.
Section 26
Case name: Precious Sapphires Ltd v. Amira Foods private ltd.
Dated: Nov 28, 2018
It was held that Section 26 of the Amending Act does not exclude the application of the amended Explanation to Section 47 of the Act to proceedings pending in the High Court on that date.
Also Read- Arbitration Proceedings in India
Section 29A
Case name: Republic of india v. Augusta Westland international Ltd.
Dated: January 9,2019
It was held that section 29A of the act is not applicable to proceedings under Section 21 of the Principal Act.
Section 31
Case name: CIMMCO Ltd. vs. UOI
Dated: March 15,2019
The court held that if under section 31(2) there are more than one arbitrators , the signatures of majority of members of Arbitral Tribunal shall be sufficient to frame an award.
Section 33
Case name : M/s Chandok Machineries v. M/s S.N Sundershan
Dated: Dec.10,2018
In this case, the arbitral award was signed after the mandate of arbitral tribunal award had terminated. The court observed that procedural irregularity ought not vitiate the entire proceeding.
Also Read- Arbitration
For case specific advice one can always contact Top/Best/Expert Arbitration Lawyers Advocate of Chandigarh Panchkula Mohali (Punjab & Haryana).
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