Amicable Settlement - The Legal Chamber

Mere Use of Word “Arbitration” Doesn’t Bind Parties: Key Business Contract Lesson from Supreme Court

20Jan

By The Legal ChamberNo Comments

Supreme Court

Mere Use of Word “Arbitration” Doesn’t Bind Parties: Key Business Contract Lesson from Supreme Court

The Supreme Court held that Clause 8.28 did not constitute a valid arbitration agreement under Section 7 of the Arbitration and Conciliation Act, 1996. The clause lacked essential attributes, such as finality and a binding decision by a neutral tribunal, as it ultimately permitted parties to seek remedies in civil courts if unresolved. Facts Of The Case: The appellant, M/s Alchemist Hospitals Ltd., entered into a Software Implementation Agreement with the respondent, M/s ICT Health Technology Services India Pvt. Ltd., on 1st November 2018 for upgrading its hospital-information software. Following implementation, the appellant alleged persistent technical failures and operational issues with the respondent's "HINAI Web Software," leading to the system being rolled back i...

Supreme Court Facilitates Settlement in Rape and Cheating Case, Orders Return of Money and Gold

The Supreme Court disposed of appeals concerning allegations under Sections 376, 406, and 506 of the IPC by facilitating a settlement. The Court directed the appellant to deposit a specified sum with the Trial Court and gold ornaments with the High Court Registrar for release to the prosecutrix, thereby resolving the disputes. Facts Of The Case: The case originates from an FIR registered against the appellant-accused based on a complaint filed by the second respondent, the prosecutrix. She alleged that the accused, who was assisting her with ongoing divorce proceedings, forcefully subjected her to sexual intercourse in December 2017 under the threat of disseminating her photographs. Subsequently, on multiple occasions in 2018, he established a physical relationship with her on the false ...

Supreme Court Explains : When Can Courts Quash Serious Crimes?

The Supreme Court, exercising its inherent powers under Section 482 CrPC, quashed criminal proceedings—including a non-compoundable offense under Section 376 IPC—based on an amicable settlement between the parties. The Court emphasized that while such offenses are grave, exceptional circumstances (victim’s unequivocal settlement, societal harmony, and futility of trial) justified judicial intervention to prevent abuse of process. The ruling reaffirms that ends of justice override rigid legal constraints in unique cases. Facts Of The Case: The case arose from two FIRs registered in November 2023 at Mehunbare Police Station, Jalgaon. The first FIR (No. 302/2023) was filed against Madhukar and others under Sections 324, 143, 147, 452, and others of the IPC, alleging they assaulted a woman a...