December 10, 2025 2:26 pm

Arbitration—Pendent lite interest on award—If the agreement between the parties specifically prohibits grant of interest, the arbitrator cannot award pendente lite interest in such cases

Bysclaw

Apr 7, 2019

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rbitration and Conciliation Act, 1996 — Sections 32 and 38 — Interplay and Source of Power — Termination of Arbitral Proceedings (General) vs. Termination for Non-Payment of Fees — Section 32(1) stipulates termination of arbitral proceedings either by final award or by order under Section 32(2). Section 32(2) lists three specific scenarios: claimant withdrawal (unless legitimate respondent objection), party agreement, or continuation becoming “unnecessary or impossible” (the residual clause, Section 32(2)(c)). (Paras 94-96, 99, 107)

Dec 9, 2025 sclaw

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 sclaw

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Scheduled Castes and Scheduled Tribes (Prevention of Atrocities) Act, 1989 — Section 3(1)(xi) — Conviction and Requirement of Caste-Based Intention — High Court’s finding that the offence was committed “simply for reason that the complainant was belonging to scheduled caste” held perverse — No statement in court by the victim or PW-2 suggesting that the accused were motivated by the victim’s caste — Finding based on mere observation without evidence is unsustainable. (Para 20)

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Bharatiya Nyaya Sanhita

Bharatiya Nyaya Sanhita, 2023 — Sections 316(4), 344, 61 (2) — Bail — Appeal against grant of bail — Distinguished from cancellation of bail — An appeal against the grant of bail is not on the same footing as an application for cancellation of bail — Superior Court interference in bail grant requires grounds such as perversity, illegality, inconsistency with law, or non-consideration of relevant factors including gravity of the offense and societal impact — The Court must not conduct a threadbare analysis of evidence at the bail stage, but the order must reflect application of mind and assessment of relevant factors — Conduct of the accused subsequent to the grant of bail is not a ground for appeal against grant of bail, but for cancellation. (Paras 7, 8)

Dec 9, 2025 sclaw

Penal Code, 18602 (IPC) — Sections 302 and 460 — Appreciation of Evidence — Prior Enmity and Delayed Disclosure of Accused’s Name — Where the star eyewitness (PW-2), the wife of the deceased, provided a detailed account of the assault to the informant (PW-1) immediately after the incident, but failed to name the accused in the First Information Report (FIR), this omission is fatal to the prosecution case, especially when there existed a palpable prior enmity between the witness’s family and the accused (who was the brother of the deceased’s second wife). (Paras 28, 31, 40, 41, 45)

Dec 9, 2025 sclaw

Scheduled Castes and the Scheduled Tribes (Prevention of Atrocities) Act, 1989 (SC/ST Act) — Section 3(1)(s) — Essential ingredient — Requirement of caste-based abuse occurring “in any place within public view” — Interpretation — For an offence under Section 3(1)(s) to be made out, the place where the utterance is made must be open, enabling the public to witness or hear the abuse — Abuse uttered within the four corners of a house, where public members are not present, does not satisfy the requirement of being “within public view” — Allegation that casteist abuses were hurled inside the complainant’s residence does not meet the statutory requirement — House of the complainant cannot be considered “within public view.” (Paras 9, 10, 11, 13)

Dec 9, 2025 sclaw