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Inadmissible Document

NN Global Mercantile Pvt Ltd v. Indo Unique Flame Ltd & Ors., (2021) 4 SCC 379

ISSUE:

Whether an arbitration clause is void and unenforceable if the contract which contains the said clause is not stamped in accordance with the Stamp Act?

Whether allegations of wrongful invocation of a bank guarantee furnished in the said contract would be an arbitrable dispute?

RULE:

The Doctrine of Separability twinned along with the synonymous concept of Kompetenz-kompetenz, lies in the essence of the arbitration agreement itself. 

The two principles dictate the arbitral tribunals authority in order to decide its jurisdiction irrespective of whether the legal instrument which contains the arbitration agreement is terminated or not. The doctrine of separability grants a material base while the kompetenz-kompetenz principle gives a procedural base to the tribunal.

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Validity of Arbitration Agreements

MV Baltic Confidence v. STC, (2001) 7 SCC 473

ISSUE:

Whether a valid arbitration clause could be incorporated in the bill of lading?

RULE:

In order to decide whether bill of lading can include a valid arbitration clause, attempt should be made to ascertain the intention of the parties and give effect to the incorporating clause. It should be invalidated giving a literal and technical reading of the clause.

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Mediation and Negotiation

Jaya Sagade v. State of Maharashtra, 2015 SCC OnLine Bom 4777

ISSUE:

Is there any harm in mediating domestic violence related cases without court order?

RULE:

A victim must be informed about her right to choose her course of action and be guided about her legal rights under the Act and there shall be no pressure upon her to settle her claim or grievance.

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Validity of Arbitration Agreements

Jagdish Chander v. Ramesh Chander, (2007) 5 SCC 719

ISSUE:

Whether clause 16 of the Deed of Partnership is a valid 'arbitration agreement'?

RULE:

Arbitration agreement must disclose a determination through words used in the agreement and obligation on behalf of parties to refer disputes to arbitration.

Where there is merely a possibility of the parties agreeing to arbitration in the future, in contrast to an obligation to refer disputes to arbitration, there is no valid and binding arbitration agreement.

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Inadmissible Document

Hero Electric Vehicles Pvt. Ltd. & Anr v. Lectro E-Mobility Pvt. Ltd. & Anr., 2021 SCC OnLine Del 1058

ISSUE:

Whether issues related to Intellectual Property Rights (IPRs) can be subject to arbitral proceedings?

RULE:

Subject matter arbitrability is the core principle which is used to determine which disputes must be solved by arbitration and which disputes should be reserved for courts only. The crux of the dispute is dissected and examined before deciding the means of dispute resolution through this principle.

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Non Signatories

GMR Energy Ltd. v. Doosan Power Systems India, 2017 SCC OnLine Del 11625.

ISSUE:

Whether the issue is such that it will be covered by domestic arbitration under Part I of the Arbitration and Conciliation Act 1996 or an international arbitration under Part II of the Act?

Whether GMR Energy should be made a party to arbitration proceedings?

Whether on the Basis of Pleas in the notice of arbitration issued by Doosan India, a case is made out to subject GMR Energy to arbitration along with GCEL and GIL?

Whether the Arbitral Tribunal has jurisdiction to pierce the corporate veil?

RULE:

The SIAC Rules, which are one of the top five arbitration institutions in the world lay down a flexible and efficient mechanism of conducting arbitration proceedings. Rule 7 of the 2016 SIAC Rules allows for third parties to seek intervention in arbitration proceedings as well.

The Principle of Alter-Ego, a legal doctrine where a corporation or entity is so heavily dominated that its own identity is ignored, to the extent that it is a mere instrumentality or conduit of its dominators, the two must be treated as one and the same.

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Inadmissible Document Number of Arbitrators

Garware Walls Ropes Ltd v. Coastal Marine Constructions & Engineering Ltd. (2019) 9 SCC 209

ISSUE:

Whether an arbitration agreement in an unstamped document can be enforceable?

RULE:

While the principle of severability states that an arbitration clause is individual from the main contract, the concept is clarified and although an arbitration clause is separate, it cannot be an independent agreement when the contract has not been stamped as required by the law. Under the principle, the arbitration clause is rendered independent when the due process is followed and the entirety of the contract is held valid and enforceable.

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Validity of Arbitration Agreements

Enercon India Ltd. v. Enercon GmBH, AIR 2014 SC 3152

ISSUE:

Whether there is a properly concluded contract between the parties?

Where would the seat of arbitration be?

RULE:

Courts have to adopt a practical and flexible approach and think like a “reasonable business person.”

It is the court’s duty to make an ‘unworkable’ clause workable by looking into the intention of the parties and by making necessary changes.

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Parties and Arbitration Agreements

Dresser Rand SA v. Bindal Agro Chem Ltd., (2006) 1 SCC 751

ISSUE:

Whether acquiescence of arbitration binds the parties to continue with arbitration?

Whether the agreement between parties arises from the arbitration clause or not?

RULE:

A Letter of Intent (LOI) can be construed as a binding contract if it is followed by conduct that is consistent with the existence of a contract.

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Mediation and Negotiation

Dayawati v. Yogesh Kumar (2017) 243 DLT 117 (DB)

ISSUE:

Whether it is permissible to refer a criminal matter such as under section 138, for settlement through mediation?

What would be the consequences of the breach of such settlement accepted by the Court?

RULE:

Even though the statute i.e. Section 138 of the Negotiable Instruments Act (NI Act) is punitive in nature; its spirit, intendment and object is to provide compensation and ensure restitution and these are the aspects which must receive priority over punishment. The proceedings under Section 138 of the NI Act are therefore, distinct from other criminal cases.

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