Chambers Lab’s Post

  What are the grounds for setting aside an arbitral award as per the Arbitration and Conciliation Act, 1996 (A&C Act)?   There are seven major grounds as per section 34 of the A&C Act: - Incapacity of Parties: When a party to the arbitration is incapable of safeguarding their interests and lacks representation, the award may not be binding and can be challenged at the party's request. -Invalid Agreement: An arbitration agreement's validity can be contested based on grounds similar to those challenging a contract's legality. - Absence of Notice: An award may be challenged under Section 34(2)(a)(iii) of the Act if a party didn't receive proper notice of arbitrator appointment, procedures, or inability to present a case. - Scope: The arbitrator's authority is defined by the dispute's contractual reference. If the arbitrator addresses matters beyond their jurisdiction, the award could be illegal and subject to modification. - Illegality of Arbitral Procedure: Deviation from parties' agreed procedure or statutory requirements, as outlined in Section 34(2)(a)(v), can lead to challenge. - Subject Matter: As per Section 34(2)(b)(i) if the court finds out that the subject matter of the dispute is incapable of being settled by arbitration. - Award Against Public Policy: An award conflicting with Indian public policy, achieved through fraud, corruption, concealment, or undue influence, can be set aside under Section 34(2)(b)(ii). #arbitration #concilliation #alternativedisputeresolution #litigation #lawfirms #tribunal #arbitralaward

Reflecting on an insightful weekend at the the conference organised by the Indian Council of Arbitration on "Arbitration as a Catalyst for Economic Development". The technical sessions provided a deep dive into arbitration's role in dispute resolution-enlightening, to say the least. The profound wisdom and insights shared by the distinguished panel added layers to my understanding. Conferences that blend learning and reconnecting make for a truly enriching experience. Looking forward to applying these insights in the professional journey #arbitration #economicdevelopment #disputeresolution

JSA Prism | Dispute Resolution | August 2023 Constitution of an arbitral tribunal is not a fetter on the Court to hear an application under Section 9(1) of the Arbitration and Conciliation Act, 1996 if the Court has already ‘entertained’ such application prior to the constitution The Calcutta High Court, in Jaya Industries v. Mother Dairy Calcutta & Anr., has held that though Section 9(3) of the Arbitration and Conciliation Act, 1996 (“Act”) bars a Court from entertaining an application for interim measures under Section 9(1) of the Act (on constitution of an arbitral tribunal), the Court can still proceed to adjudicate the application if it has already applied its mind to the issues raised.    To read further details, please refer to the below link: https://lnkd.in/dYznJ5F5 Sidharth Sethi | Kunal Saini #jsa #legalupdates #disputeresolution #arbitration #leadinglawyers #leadinglawfirm

In a significant ruling, the Hon'ble Delhi High Court, in the matter of M/S Space 4 Business Solution Pvt Ltd v. The Divisional Commissioner Principal Secretary and Anr. (ARB.P. 360/2024), has reaffirmed the discretionary power of arbitrators in awarding interest rates. The essence of the judgment lies in the assertion that the grant of interest is not an automatic entitlement but rests solely within the arbitrator's discretion. The court emphasized that parties cannot claim interest as a matter of right. Key Highlights of the Judgment are as follows: (1) The court reiterated that the decision to grant or refuse interest on the principal amount is at the absolute discretion of the learned arbitrator. (2) Emphasis was laid on adhering to the correct procedural steps. The court underscored that approaching the right forum under Section 11(6) of the Arbitration Act is paramount. (3) The judgment clarified the applicability of the Limitation Act, 1963, in arbitration proceedings, emphasizing the importance of timely action within the prescribed limitation period. (4) The court elucidated that while negotiating settlements and determining awards, the arbitrator may consider various factors, including the principal amount and any agreed-upon interest rates. (5) Ultimately, the court dismissed the petition, affirming its stance on the discretionary nature of interest awards and procedural correctness. Sumit Wadhva Bharat Bhushan Ayush Patria

JSA Prism | Dispute Resolution | December 2023 7 (seven) judge bench of the Supreme Court holds that unstamped or insufficiently stamped arbitration agreements are not rendered void or void ab initio   A 7 (seven) judge bench of the Hon’ble Supreme Court of India has observed in the case re: Interplay Between Arbitration Agreements under the Arbitration and Conciliation Act 1996 and the Indian Stamp Act 1899, that non-stamping of the arbitration agreement does not make the agreement void or unenforceable but makes it inadmissible in evidence. However, the same is a curable defect as per the Indian Stamp Act, 1899.   To read further details, please click here: https://lnkd.in/gikmRrw3 Sidharth Sethi | Varghese Thomas | Fatema Dalal Kachwalla | Avinash Das | Virgil Braganza | Kunal Saini #jsa #leadinglawfirm #leadinglawyers #legalupdates #disputeresolution #supremecourt #arbitration #prism

JSA Prism | Dispute Resolution | May 2024 Delhi High Court: Arbitrators can calculate liquidated damages on the basis of “honest guesswork” and “rough methods” in case of insufficient evidence   The Division Bench of the Delhi High Court in a recent judgement has upheld the quantification of liquidated damages on the basis of “honest estimations” and “rough methods” to arrive at a fair assessment of damages in cases where the quantification is complex, and there is insufficient evidence on record. The “honest guesswork” approach offers a practical solution for arbitrators when precise damage calculations are difficult, particularly in public projects with non-monetary benefits. It saves time and resources by eliminating the need for extensive evidence gathering. However, the flexibility of this method comes with its own on inaccuracy and unfair outcomes. Thus, in order to balance efficiency and fair assessment, this quantification mechanism should be used as a last resort when determining damages is impossible, and not simply when it is improbable.   To read further details, please click here: https://lnkd.in/gYHMb5QQ Dheeraj Nair | Vishrutyi Sahni | Muskaan Gupta #jsa #leadinglawfirm #leadinglawyers #DisputeResolution #arbitration #prism

Courts' Power to remand an arbitration award back to tribunal. Kinnari Mullick & Anr. vs. Ghanshyam Das Damani, (2018) 11 SCC 328; Under Section 34(4) of the #Arbitration and Conciliation Act, 1996 (“ACA”), the court has the power to remand an arbitral award back to the tribunal on the grounds of “curable defects”. Case law suggests that curable defects include awards lacking reasoning that can be cured. The plain #language of Section 34(4), unlike Section 33, suggests otherwise. Per contra, a bare perusal of the language of Section 34(4) appears to grant wide powers to the #court - 👉to adjourn proceedings “for a time period determined” by the court, 👉to direct the arbitral tribunal “to resume the #arbitral proceedings”, or 👉“to take such other action as in the opinion of the arbitral tribunal will eliminate the grounds for setting aside the arbitral #award ”. #supremecourtofindia #india #disputeresolution #disputemanagement ADROIT CLAIMS AND ADR CONSULTANTS

Presently, no institution or authority or body is appointed or designated as an official regulator to monitor or regulate the profession of arbitration. Some suggestions worth considering to regulate arbitration profession: 1) There has to be a monitoring body and disciplinary body to monitor their conduct, performance and compliance with the rules and regulations. 2) Continuing Education Programme is essential for maintenance, growth and development of arbitration as a profession. Arbitrators should undergo minimum CEP Hours as stipulated by a regulator. 3) There has to be peer review of the arbitral awards passed by the arbitrators so that they realise their mistakes and take steps to improve their performance in future. 4) There should be two levels of regulators to regulate arbitration profession. Firstly, Arbitral Institutions should serve the role of frontline regulators for registering, monitoring, disciplining its members who act as arbitrators. Secondly, these arbitral institutions should remain under overall oversight of principal regulator. 5) Sole arbitrators and arbitrators appointed under adhoc arbitration mechanism should also come under the purview of regulators. Please read the attached article to gain an insight into the need to regulate the profession of arbitration. #kpmg #arbitration #arbitrationlaw #arbitrator #scc #dispute #disputeresolution #law #litigation #internationalarbitration #bpcl #arbitrators

I hope to see you at the SIAC Mumbai conference today where leading practitioners will discuss navigating risks and challenges in international arbitration. Don't miss out on the exciting Oxford style debate on third-party funding. See you there! #SIACMumbaiConference #InternationalArbitration #ThirdPartyFunding #RiskManagement #Challenges