Tag: Enforcement of Award

Supreme Court: Subsequent Contracts Don’t Override Original Arbitration Agreement
9Feb By The Legal ChamberNo Comments
Supreme Court

Supreme Court: Subsequent Contracts Don’t Override Original Arbitration Agreement

The Supreme Court held that Part I of the Arbitration & Conciliation Act, 1996, including Section 11, does not apply to a foreign-seated international commercial arbitration. The arbitration clause in the principal "mother agreement" governs, and subsequent ancillary contracts with different parties cannot novate it or confer jurisdiction on Indian courts. Facts Of The Case: The petitioner, Balaji Steel Trade, entered into a Buyer and Seller Agreement (BSA) dated 06.06.2019 with respondent no. 1, Fludor Benin S.A., for the supply of cottonseed cake, containing an arbitration clause specifying arbitration in Benin. An Addendum was later executed. Subsequently, respondent no. 1 assigned its supply obligations. The petitioner then entered into separate Sales Contracts with r...
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Supreme Court Explains: How Legal Representatives Must Be Heard Before Estate Is Attached
9Feb By The Legal ChamberNo Comments
Supreme Court

Supreme Court Explains: How Legal Representatives Must Be Heard Before Estate Is Attached

The Supreme Court held that the Arbitration Act is a self-contained code, limiting judicial interference. Letters Patent Appeals against execution orders under the Act are not maintainable. It mandated the issuance of notice under Order XXI, Rule 22 of the CPC to legal representatives as a jurisdictional prerequisite before proceeding against a deceased judgment debtor's estate. Facts Of The Case: The dispute originated from an arbitral award dated 12.07.2010, passed in favour of the appellant, Bharat Kantilal Dalal, against his late father concerning family assets. After the father's death, the appellant sought to execute the award against his uncle (the father's brother), who was the sole beneficiary and executor under the father's Will. The uncle, along with other respondents, res...
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Arbitrator’s Power on Interest Rates: Supreme Court Explains Key Legal Limits
6Feb By The Legal ChamberNo Comments
Supreme Court

Arbitrator’s Power on Interest Rates: Supreme Court Explains Key Legal Limits

This Supreme Court judgment clarifies the limited scope of judicial interference with arbitral awards under the Arbitration and Conciliation Act, 1996. The Supreme Court held that an arbitrator's discretion to award a contractual interest rate of 24% is not per se usurious or against public policy. It reaffirmed that courts cannot reappreciate evidence and may only set aside an award on the narrow, specified grounds under Section 34 of the Act, which were not met in this case. Facts Of The Case: The appellants, M/s Sri Lakshmi Hotels Pvt. Limited and its Managing Director, availed two loans totaling ₹1.57 Crore from the respondent Non-Banking Financial Company (NBFC) in 2006. The loan agreements stipulated an interest rate of 24% per annum. After making partial repayments until April 200...
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Clarity on Post-Award Interest: Supreme Court Explains When Hyder Consulting Judgment Applies
15Nov By The Legal ChamberNo Comments
Supreme Court

Clarity on Post-Award Interest: Supreme Court Explains When Hyder Consulting Judgment Applies

This Supreme Court judgment clarifies that an arbitral award granting a composite interest rate from the cause of action until the date of repayment, based on a contract between the parties, excludes the default application of separate post-award interest under Section 31(7)(b) of the Arbitration and Conciliation Act, 1996. Party autonomy governs, and a decree-holder cannot claim compound interest at the execution stage if it was not stipulated in the contract or awarded by the tribunal, as this would amount to impermissibly modifying the award. Facts Of The Case: The dispute originated from a Memorandum of Understanding (MoU) dated 09.04.2014 between HLV Limited and PBSAMP Projects Pvt. Ltd. for the sale of land in Hyderabad. PBSAMP paid an advance of Rs. 15.5 crores to HLV. After...
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