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Arbitrability

Avitel Post Studioz Ltd. v. HSBC PI Holdings (Mauritius) Ltd., (2021) 4 SCC 713

ISSUE:

Whether the Singapore Arbitration Tribunal has jurisdiction in the matter?

Whether the given matter concerning fraud can be governed under Singapore Laws?

RULE:

Section 9 of the Arbitration and Conciliation Act 1996 holds the interim measures by Courts for the appointment of a guardian for a minor or a person of unsound mind for the purposes of arbitral proceedings; or

a) for an interim measure of protection in respect of any of the following matters, namely:

b) the preservation, interim custody or sale of any goods which are the subject-matter of the arbitration agreement;

c) securing the amount in dispute in the arbitration;

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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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Arbitrability

Lamps Plus, Inc., et al v. Varela, 2019 SCC OnLine US SC 50

ISSUE:

Whether Federal Arbitration Act (FAA) precludes a state law interpretation of an arbitration agreement which would authorize class arbitration based on general language commonly used in arbitration agreements?

RULE:

The Doctrine of Contra Proferentem, which roughly translates to “guilt of the drafter”, usually applied in contract law states that any clause or term considered to be ambiguous in an agreement should be interpreted against the party which requestion or included the clause in the first place.

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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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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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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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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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Arbitrability

Nori Holdings Limited et al v. PJSC Bank Okritie Financial Corporation, [2018] EWHC 1343 (Comm)

ISSUE:

Whether the court of one EU Member State can grant an anti-suit injunction where one of the parties has started legal proceedings in another EU Member State in disregard of an existing arbitration agreement between the parties?

RULE:

The Brussels Regulation was adopted by the European Union in 2000 in order to minimize the impact of differences between national rules governing jurisdiction.

An injunction to stop legal action launched in violation of an arbitration agreement in another Member State court cannot be granted by an English court.

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Arbitrability

Booz Allen & Hamilton v. SBI Home Finance (2011) 5 SCC 532

ISSUE:

Whether the absence of an express provision in the Arbitration and Conciliation Act, of 1996, has created uncertainty in identifying which conflicts can be brought to arbitration and which must be resolved in court?

Whether the Supreme Court's four-part test in the Vidya Drolia case gives a clear framework for establishing arbitrability in India, and how it differs from the earlier Booz-Allen Test?

RULE:

Disputes involving a "right in rem" (a person's right against the entire world) are often seen as non-arbitrable, but disputes involving a "right in personam" (rights against specific individuals, such as in a contract) are regarded as arbitrable.

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Arbitrability

Fulham Football Club (1987) Ltd v. Richards [2012] 1 All E.R. (Comm) 1148

ISSUE:

Whether the arbitration clause contained in the FAPL and FA Rules should be construed so as to exclude the claims for unfair prejudice which fall within Section 994 of the Companies Act, 2006?

RULE:

The disputed issues are covered by the arbitration agreement, provided that the relief requested by the party is not one that would bind third parties or one that an arbitrator could not give owing to public policy concerns, which should render the arbitration agreement void.

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