Fri, 20 September 2024 03:13:17am
10 Groundbreaking Arbitration Judgments by Indian Courts in 2024
10 Groundbreaking Arbitration Judgments by Indian Courts in 2024
Arbitration in India has always been a dynamic field, with constant judicial interpretations shaping its landscape. The first half of 2024 has been particularly eventful, with Indian courts delivering several landmark judgments that have clarified and transformed various aspects of arbitration law. Here, we delve into 10 pivotal judgments passed between January and June 2024 that have provided much-needed clarity and guidance on critical arbitration issues.
1. Dhansar Engineering Company Pvt Ltd v. Eastern Coalfields Ltd April 18, 2024, RVWO No. 38 of 2023 The Calcutta High Court ruled that a policy circular requiring fresh consent for arbitration does not amount to an arbitration agreement.
2. Vedanta Limited v. Shreeji Shipping February 8, 2024, ARB.P. 342 of 2023 The Delhi High Court held that an arbitration clause specifying multiple seats is not void for uncertainty.
3. M/s. ICDS Ltd v. Sri Bhaskaran Pillai February 9, 2024, M.F.A. 6319 of 2014 (AA) The Karnataka High Court affirmed that arbitration agreements referencing the Arbitration Act of 1940 are still valid under the 1996 Act.
4. Mr. Gajendra Mishra v. Pokhrama Foundation January 10, 2024, ARB.P. 969 of 2023 The Delhi High Court ruled that a party cannot insist on pre-arbitral steps after contract termination.
5. M/s Naolin Infrastructure Private Ltd. v. M/s Kalpana Industries February 2, 2024, Arb. App. 162 of 2023 The Telangana High Court clarified that filing an application under Order 7 Rule 11 CPC suffices for compliance with Section 8 of the Arbitration Act.
6. Apex Buldsys Limited v. IRCON International Ltd March 15, 2024, Arb. P. 373 of 2023 The Delhi High Court held that allowing one party to appoint two-thirds of the tribunal members undermines neutrality.
7. Techno Compact Builders v. Railtel Corporation of India Limited March 22, 2024, Arb. P. 1230 of 2023 The Delhi High Court emphasized the importance of a diverse arbitration panel.
8. Lease Plan India Pvt Ltd v. Rudraksh Pharma Distributor April 10, 2024, ARB. P. 1273 of 2023 The Delhi High Court recognized service of notice via WhatsApp and email as valid.
9. Telecommunication Consultants India Ltd v. Shivaa Trading April 9, 2024, O.M.P. (COMM) 311 of 2022 The Delhi High Court upheld that an award by a unilaterally appointed arbitrator is void.
10. Era International v. Aditya Birla Global Trading India Pvt. Ltd February 26, 2024, Comm. Arb. P. (L) 27638 of 2023 The Bombay High Court confirmed the applicability of Section 12(5) to institutional arbitrations.
The period between January and June 2024 has seen a wealth of significant judgments by Indian courts, providing much-needed clarity and direction on various aspects of arbitration. These rulings have addressed issues ranging from the validity of arbitration agreements and the role of policy circulars to the intricacies of arbitral awards and the appointment of arbitrators. The insights gained from these judgments are crucial for legal practitioners, businesses, and parties involved in arbitration, offering a clearer understanding of the judicial stance on critical arbitration matters. As arbitration continues to be a preferred mode of dispute resolution in India, these rulings will undoubtedly influence the future arbitration landscape, promoting fairness, efficiency, and adherence to established legal principles.
Key Points
- Policy Circulars and Arbitration Agreements: A policy circular requiring further consent does not constitute an arbitration agreement.
- Multiple Seats of Arbitration: Arbitration agreements with multiple seats are not void for uncertainty.
- Reference to Arbitration Acts: Agreements referencing outdated arbitration acts remain valid under current laws.
- Pre-Arbitral Steps: Terminating an agreement without pre-arbitral conciliation nullifies any obligation to engage in it.
- Section 8 Applications: Applications under Section 8 of the Arbitration Act must shift the court's focus to the arbitration agreement's jurisdiction.
- Arbitral Tribunal Composition: Limiting the arbitral tribunal to three names or allowing one party to appoint two-thirds undermines neutrality.
- Panel Diversity: A diverse arbitration panel is crucial for fairness and representation.
- Digital Notice: Service of arbitration notice via WhatsApp and email is valid.
- Unilateral Appointments: Awards by unilaterally appointed arbitrators can be challenged for lack of jurisdiction.
- Institutional Arbitration: Institutional arbitration rules cannot override the Arbitration and Conciliation Act provisions.
