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Arbitration Act, 1940 – Sections 8 and 20 – Appointment of arbitrator – Bias – Contract stipulating reference to Superintending Engineer unconnected work contract – Appointment of a Superintending Engineer subordinate to the appointing authority is valid.
Bysclaw
Apr 9, 2017
By sclaw
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Arbitration and Conciliation Act, 1996 — Section 31(7)(a) and (b) — Power of Arbitral Tribunal to grant interest — Party Autonomy — Pre-award (pendente lite) interest — Section 31(7)(a) mandates that the Arbitral Tribunal’s discretion to award interest on the sum awarded (from date cause of action arose till date of award) is subject to the agreement between the parties (“unless otherwise agreed by the parties”) — When parties specify a contractual rate of interest in the agreement, subject to no legal bar, this stipulation takes precedence over the Arbitrator’s discretion to deem a rate “reasonable” — Arbitral Tribunal is bound by the contractual terms regarding interest once agreed upon, and the borrower cannot later challenge the rate as unconscionable or against public policy, especially in commercial transactions between parties of equal bargaining power — Post-award interest is governed by Section 31(7)(b) (Paras 51, 53, 56, 64, 65, 70).
Dec 7, 2025
sclaw
Arbitration and Conciliation Act, 1996 — Sections 34 and 37 — Arbitral Award — Excepted or Prohibited Claims — Contractual clauses barring certain claims (e.g., for idle labour, idle machinery, business loss) — Judicial review of awards involving prohibited claims — Applicability of such clauses primarily depends on the agreement between the parties, guided by the principle of party autonomy — Arbitral Tribunal and Courts must rely on the contract as the foundation of the legal relationship — High Court setting aside Civil Court order (under Section 34) and restoring award (under Section 37) solely based on precedent (Bharat Drilling) without independent contractual analysis is flawed — Reinstating claims (underutilised overheads, loss due to underutilised tools/machinery, loss of profit) barred by specific contractual provisions (Clauses 4.20.2, 4.20.4) is incorrect if based only on flawed precedent. (Paras 4, 5, 6, 8, 9)
Dec 7, 2025
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Arbitration and Conciliation Act, 1996 — Section 11(6), Section 11(12)(a), Section 2(1)(f), Section 2(2) — Applicability of Part I, including Section 11, to International Commercial Arbitration (ICA) — Dispute arising from a Buyer and Seller Agreement (BSA) where Respondent No. 1 is foreign company (incorporated in Benin) — BSA stipulates arbitration “will take place in Benin” and is governed by laws of Benin — Held: Dispute is an ICA under Section 2(1)(f) — Under Section 2(2), Part I of the Act applies only where the place of arbitration is in India — Designation of Benin as the place of arbitration, coupled with choice of Benin law as governing/curial law, unequivocally establishes Benin as the juridical seat — Indian Courts lack jurisdiction under Section 11 to appoint an arbitrator for a foreign-seated arbitration — Petition seeking appointment of an arbitrator in India is fundamentally misconceived and legally untenable. (Paras 2, 23, 24, 25, 26, 30)
Nov 30, 2025
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