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NGT

M/S. Sterlite Industries (India) v. The Chairman, Tamil Nadu Pollution State Control Board and Ors. (Sterlite Case) M. A. No. 78 of 2013 (SZ)

ISSUE:

Whether the appellant company has concealed the facts and contravened the provisions of Section 21 and 31A of the Air (Prevention and Control of Pollution) Act, 1981 and Section 19 (4) (e) of the National Green Tribunal Act, 2010 by not taking proper care and required measures as prescribed?

RULE:

It is essential to ensure that the and other concerned authorities enforce environmental regulations and take appropriate action against polluting industries.

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Statutory Regimes

Hanuman Laxman Aroskar v. Union of India, (2020) 12 SCC 1 – Goa Airport Case II

ISSUE:

Whether the EAC revision and changes made to the Mopa Airport were in accordance with environmental regulations for the suspension to be revoked?

RULE:

The Doctrine of Sustainable Development involves balancing the various aspects of social progress, economic growth, and the environment. The concept recognizes that these three elements are interconnected and that their integration into any strategy is crucial. The doctrine of sustainability seeks to meet the present necessities and take into account the needs of the future.

The 'Precautionary Principle', widely used in determining the outcome, states that where there is a threat to irreversible or serious damage to the environment, there must be immediate action, and a lack of scientific assurance should not and cannot be a reason to avoid taking action.

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Arbitrability General Rules of Transfer

Vidya Drolia v. Durga Trading [Supreme Court, 14 December 2020]

ISSUE:

Whether landlord-tenant issues covered by the Transfer of Property Act 1882, are arbitrable under Indian law, and how does the Supreme Court's four-part test influence this determination?

Whether claims of fraud in a dispute constitute it non-arbitrable, and under what conditions do such allegations influence a disagreement's arbitrability?

RULE:

In India, a four-part test is used to evaluate subject matter arbitrability. When the cause of action and/or subject of the dispute (1) relates to actions in rem that do not relate to inferior rights in personam arising from rights in rem, (2) has an erga omnes effect on third-party rights, necessitating centralised adjudication where mutual adjudication would be inappropriate, (3) involves unalienable sovereign and public interest functions of the State, or (4) is expressly or implicitly prohibited, the dispute is not considered arbitrable.

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Applicable Laws

Venture Global Engineering v. Satyam Computer Services Ltd. & Anr. 2008 (4) SCC 190

ISSUE:

Whether Indian courts can overturn a foreign arbitral ruling under the Arbitration and Conciliation Act of 1996?

Whether Part I of the Arbitration and Conciliation Act, 1996, applicable when the arbitration seat is outside of India? Under Section 34, read with Section 9 of the Act, is the aggrieved party entitled to challenge a foreign award made outside India?

RULE:

Part I of the Arbitration and Conciliation Act of 1996 applies to all arbitrations, including international commercial arbitrations, unless the parties expressly or implicitly exclude all or all of its terms by agreement.

Section 48(1)(e) of the Act, read together with Section 48(3) of the Act, states that an action to set aside a foreign award within the meaning of Section 44 of the Act must be brought before the competent authority of the country in which, or under the legislation of which, the award was issued.

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Applicable Laws

Union of India v. Reliance Industries Ltd., (2015) 10 SCC 213

ISSUE:

Whether Indian Courts and authorities can exercise jurisdiction over disputes with a foreign arbitration law under Part I of the Arbitration and Conciliation Act 1996?

Whether the petition filed under section 34 of the Arbitration and Conciliation Act, 1996 at the Delhi High Court is maintainable?

RULE:

in Bhatia International v. Bulk Trading S.A. & Anr., (2002) 4 SCC 105, resurrected this doctrine of concurrent jurisdiction by holding, in paragraph 32, that even where arbitrations are held outside India, unless the parties agree to exclude the application of Part-I of the Arbitration Act, 1996, either expressly or by necessary implication, the courts in India will exercise concurrent jurisdiction with the court in the country in which the foreign award was made

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Arbitrability

The Indian Performing Right Society Ltd. v. Entertainment Network (India) Ltd. (MANU/MH/1597/2016)

ISSUE:

Whether disputes on the issue of refund of royalty is an arbitrable matter?

RULE:

The rights granted to an IPR owner are considered as "rights in rem" because they protect the owner's property from everyone and not just from one specific person.

Any issues involving rights in rem are to be settled by Courts.

Since determining the validity of intellectual property is an issue that can only be handled by the Copyright Board and is not subject to arbitration, the issue of refunding royalties cannot be settled by arbitration.

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Categories
Parties and Arbitration Agreements

Sukanya Holdings Pvt. Ltd. v. Jayesh H. Pandya (2003) 5 SCC 531

ISSUE:

Whether an arbitration act can oust the jurisdiction of the civil courts where parties do not follow Section 8 of the Arbitration and Conciliation Act, 1996 and is there no provision for partly referring the dispute to arbitration under Section 8 of the Act?

RULE:

In a matter that is the subject matter of an arbitration agreement, the Court is required to refer the parties to arbitration. Therefore, the suit should be in respect of a matter which the parties have agreed to refer to and which comes within the ambit of the arbitration agreement. Where, however, a suit is commenced “as to matter” which lies outside the arbitration agreement and is also between some of the parties who are not parties to the arbitration agreement, there is no question of application of Section 8 of the Arbitration and Conciliation Act, 1996.

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Appointment and Challenge Arbitrability

Swiss Timing Ltd. vs. Organizing Committee, Commonwealth Games 2010 Delhi, (Arbitration Petition No. 34 of 2013)

ISSUE:

Whether a dispute involving allegations of fraudulent, corrupt, collusive or coercive practice be settled by arbitration?

RULE:

Allegations of fraud and other malpractices are arbitrable, but the arbitral tribunal cannot deal with a case of serious fraud and its jurisdiction is merely limited to determining the issue of simpliciter fraud.

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Categories
Parties and Arbitration Agreements

Smita Conductors Ltd. v. Euro Alloys Ltd., (2001) 7 SCC 728

ISSUE:

Whether the arbitration clause could be enforced?

RULE:

The New York Convention controls the proceedings in arbitration. Even the plain language of Section 2(a) of the Act makes it clear that the Act is applicable in respect of a foreign award made in pursuance of an agreement in writing for arbitration to which the Convention set forth in the Schedule applies and the terms of the Convention are available in the Schedule to the Act.

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Categories
Arbitrability

Shri Vimal Kishor Shah v. Jayesh Dinesh Shah, CIVIL APPEAL NO.8164 OF 2016

ISSUE:

Whether disputes arising out of trust deeds, governed under the Trust Act,1882 are, arbitrable disputes?

RULE:

Although there is no express prohibition against the Arbitration Act, there is an implied prohibition against the Arbitration Act's application to the resolution of trust-related disputes through private arbitration because the remedies provided by the Trusts Act are adequate and sufficient.

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