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Centrotrade Minerals & Metal v. Hindustan Copper Ltd, (2006) 11 SCC 245

ISSUE:

Whether the contract's two-tier arbitration clause, which allows for a second arbitration with the International Chamber of Commerce (ICC) in London after the initial arbitration in India, is legitimate and allowed under Indian law. This issue has already been addressed and resolved in favor of the clause's legitimacy?

Whether the contract's two-tier arbitration clause, which allows for a second arbitration with the International Chamber of Commerce (ICC) in London after the initial arbitration in India, is legitimate and allowed under Indian law. This issue has already been addressed and resolved in favour of the clause's legitimacy.

RULE:

In this scenario, the relevant rule is the two-tier arbitration clause included in the parties' contract. This section provides for a two-stage arbitration process, with the first stage involving arbitration in India and the case proceeding to a second arbitration conducted by the International Chamber of Commerce (ICC) in London if either party is dissatisfied with the outcome. This regulation specifies the agreed-upon approach for resolving contract-related issues.

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Appointment and Challenge

Amazon.Com NV Investment Holdings LLC v. Future Coupons Private Limited & Ors, 2021 SCC OnLine Del 1279.

ISSUE:

What is the legal status of an EA, i.e. whether the EA is an arbitrator in terms of the Act and whether the interim order of an EA is an order under Section 17(1) and is enforceable under Section 17(2) of the Act?

Whether the EA misapplied the Group of Companies doctrine, which arguably applies only to proceedings under Section 8 of the Act?

Whether the interim order of EA is null and void as it was passed without jurisdiction

RULE:

Emergency arbitral awards are enforceable under Section 17(2) of the Arbitration and Conciliation Act, 1996 of India (the Act) as an interim order of an arbitral tribunal made under Section 17(1) of the Act.

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Recourse against Arbitral Awards

Associate Builders v. DDA, (2015) 3 SCC 49

ISSUE:

Whether the Delhi Development Authority (DDA) was legally obligated to compensate the contractor for the significant delay in the construction project that the arbitrators determined?

Whether the division bench of the High Court's use of the principle of "rough and ready justice" was a suitable criterion for determining compensation amounts in cases of construction project delays.

RULE:

In circumstances involving construction contracts and delays, courts may apply the idea of "rough and ready justice" to determine the amount of compensation. Based on the facts of the case, this approach helps courts to decide a reasonable and justifiable compensation sum.

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Foreign Awards and their Enforcement

Centrotrade Minerals and Metals Inc v. Hindustan Copper Limited [Supreme Court, 2 June 2020]

ISSUE:

Whether the contract's two-tier arbitration clause, which allows for a second arbitration with the International Chamber of Commerce (ICC) in London after the initial arbitration in India, is legitimate and allowed under Indian law. This issue has already been addressed and resolved in favor of the clause's legitimacy?

Whether the contract's two-tier arbitration clause, which allows for a second arbitration with the International Chamber of Commerce (ICC) in London after the initial arbitration in India, is legitimate and allowed under Indian law. This issue has already been addressed and resolved in favour of the clause's legitimacy.

RULE:

In this scenario, the relevant rule is the two-tier arbitration clause included in the parties' contract. This section provides for a two-stage arbitration process, with the first stage involving arbitration in India and the case proceeding to a second arbitration conducted by the International Chamber of Commerce (ICC) in London if either party is dissatisfied with the outcome. This regulation specifies the agreed-upon approach for resolving contract-related issues.

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Arbitral Awards

Dr. Writer’s Food Products v. Cosmos Co-operative Bank [Bombay HC, 20 September]

ISSUE:

Whether the respondent's motion for correction of the arbitral award, filed on December 29, 2016, was maintainable under Section 33 of the Arbitration Act after the 30-day limitation period from the date of service of the arbitral judgement?

Whether it is possible that the respondent's late application under Section 33, which was not maintainable, could prolong the time limit for the petitioners to file an arbitration petition under Section 34 challenging the initial arbitral judgement of June 4, 2015?

RULE:

In India, the Arbitration and Conciliation Act of 1996 oversees the resolution of arbitration issues. Section 34 of the Act addresses the setting aside of an arbitral award, while Section 33 addresses award revision and interpretation.

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Arbitrability

Deccan Paper Mills Co. Ltd. v. Regency Mahavir Properties, (2021) 4 SCC 786

ISSUE:

Whether disputes involving allegations of fraud in the execution of agreement can be arbitrated?

Whether proceedings under Section 31 of the Specific Relief Act, 1963 would be treated as proceedings in personam or proceedings in rem?

RULE:

Section 31 of the Specific Relief Act 1963 states when a cancellation may be ordered;

a) Any person against whom a written instrument is void or voidable, and who has reasonable apprehension that such instrument, if left outstanding may cause him serious injury, may sue to have it adjudged void or voidable; and the court may, in its discretion, so adjudge it and order it to be delivered up and cancelled.

b) If the instrument has been registered under the Indian Registration Act, 1908 (16 of 1908), the court shall also send a copy of its decree to the officer in whose office the instrument has been so registered; and such officer shall note on the copy of the instrument contained in his books the fact of its cancellation.

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Appointment and Challenge

Entertainment City Ltd. v. Aspek Media (P) Ltd., 2020 SCC OnLine Del 2648

ISSUE:

Whether the fees charged by the Arbitrator are subject to the statutory limits stipulated in the fourth schedule of the Arbitration and Conciliation Act 1996?

RULE:

Section 14 of the Arbitration and Conciliation Act 1996 deals with the resignation and termination of appointed arbitrators on the grounds of inability to perform duties de jure or de facto or any such reasons.

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Appointment and Challenge

DSC Ventures (P) Ltd. v. Ministry of Road Transport & Highways, 2020 SCC OnLine Del 669

ISSUE:

Whether a party can appoint an arbitrator after the expiry of 30 days from the date of demand to do so, in a case falling under Section 11(6) of the Arbitration and Conciliation Act 1996?

RULE:

Section 11(6) of the Arbitration and Conciliation Act 1996 reads that when a party has failed to act as required by procedure, or when the parties fail to reach an amicable solution, they may request the Supreme Court or as the case may be, the High Court to take necessary steps or direct orders, unless the agreement between the disputing parties prescribes other means for the same.

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Recourse against Arbitral Awards

Gammon India Ltd. & Anr v. NHAI [Delhi HC, 23 June 2020]

ISSUE:

Whether it is permissible for a court to rely on the findings of a subsequent award in resolving objections brought against a previous award in a case involving several awards and arbitration proceedings, whether it is permissible for a court to rely on the findings of a subsequent award in resolving objections brought against a previous award.

Whether the 1996 Arbitration and Conciliation Act have explicit provisions or established legal principles to handle the issue of multiple arbitral processes and promote effective dispute resolution?

Whether the Act contains instructions or procedures for dealing with the problem of varied arbitral processes and ensuring that dispute resolution adheres to the terms of the 1996 Arbitration and Conciliation Act?

RULE:

To avoid multiple arbitrations, parties interested in arbitration pertaining to the same contract should combine their claims into a single arbitration procedure if practicable. This ensures that dispute resolution is more efficient and effective.

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Appointment and Challenge

HRD Corpn. v. GAIL (India) Ltd., (2018) 12 SCC 471

ISSUE:

Whether Justice Lahoti should be removed as an Arbitrator under Items 1, 8 and 15 of the seventh schedule of the Arbitration and Conciliation Act 1996?

Whether Justice Doabia should be removed as an Arbitrator under Items 1, 15 and 16 of the Act?

RULE:

The IBA Guidelines on Conflicts of Interest in International Arbitration lay down the general principles on the appointment of an arbitrator, wherein, it is mandated that every arbitrator shall be impartial and independent and shall remain so until the final award has been declared. The Guidelines also state that an Arbitrator must also decline said appointments if he/she has doubts regarding the ability to be impartial and independent.

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