Justice Manoj Misra - The Legal Chamber

Supreme Court Ruling: Courts Must Appoint Arbitrator Even If Serious Fraud is Alleged

5Sep

By The Legal ChamberNo Comments

Supreme Court

Supreme Court Ruling: Courts Must Appoint Arbitrator Even If Serious Fraud is Alleged

The Supreme Court reaffirmed that under Section 11(6A) of the Arbitration Act, a court's role is prima facie confined to examining the existence of an arbitration agreement. All other contentious issues, including allegations of serious fraud and non-arbitrability, are jurisdictional matters that must be decided by the arbitral tribunal under Section 16. Facts Of The Case: The appellant, Bihar State Food and Civil Supplies Corporation, entered into agreements with various rice millers for the custom milling of paddy procured from farmers. The agreements contained an arbitration clause. When the millers allegedly failed to deliver the stipulated quantity of rice, the Corporation initiated recovery proceedings under the Bihar and Orissa Public Demands Recovery Act, 1914. The millers challe...

Supreme Court Upholds National Fraternity: Teaching Experience Across India Counts

26Aug

By The Legal ChamberNo Comments

Supreme Court

Supreme Court Upholds National Fraternity: Teaching Experience Across India Counts

The Supreme Court held that a government notification extending the retirement age must be interpreted purposively, and a condition requiring "10 years of teaching experience in any State-aided university" includes experience from universities outside the state. Excluding such experience was found to be an arbitrary and discriminatory classification violating the right to equality under Article 14. Facts Of The Case: The appellant was initially appointed as a teacher in a government college in Assam in 1991, where he served for 16 years. In 2007, he was selected for a non-teaching post at Burdwan University, West Bengal, based on his qualifications and experience, and was later promoted in 2012. In 2021, the State of West Bengal issued a notification increasing the retirement age from 60...

Cheque Bounce Case: Supreme Court Reinstates Case Against Director in ₹6 Crore Cheque Dishonour Case

7Jun

By The Legal ChamberNo Comments

Supreme Court

Cheque Bounce Case: Supreme Court Reinstates Case Against Director in ₹6 Crore Cheque Dishonour Case

The Supreme Court clarified that for vicarious liability under Section 141 of the Negotiable Instruments Act, complaints need not reproduce statutory language verbatim. Substantive allegations demonstrating a director's responsibility for company affairs suffice. The Court emphasized substance over form, ruling that technical pleading deficiencies don't invalidate proceedings if the complaint, read holistically, establishes the director's operational role. The judgment reinstated criminal proceedings against the director, overturning the High Court's quashing order. Facts Of The Case: The case involved a complaint filed by HDFC Bank against M/s R Square Shri Sai Baba Abhikaran Pvt. Ltd. and its directors, including Mrs. Ranjana Sharma (Respondent No. 2), for dishonor of a cheque worth ₹6...

“Courts Can’t Decide Arbitrability” Supreme Court Clarifies Arbitrator Appointment Scope Under Section 11 Arbitration Act

17May

By The Legal ChamberNo Comments

Supreme Court

“Courts Can’t Decide Arbitrability” Supreme Court Clarifies Arbitrator Appointment Scope Under Section 11 Arbitration Act

The Supreme Court ruled that under Section 11(6A) of the Arbitration Act, courts must limit their examination to the existence of an arbitration agreement and cannot decide arbitrability or exclude claims as "excepted matters" at the appointment stage. Citing the 7-judge bench in In Re: Interplay and 3-judge bench in SBI General Insurance, it held that arbitral tribunals—not courts—must determine whether claims fall under non-arbitrable categories. The judgment clarifies that courts cannot bifurcate claims into arbitrable/non-arbitrable during arbitrator appointments, ensuring minimal judicial interference at the referral stage. Facts Of The Case: The dispute arose from a contractual agreement between Office for Alternative Architecture (Appellant) and IRCON Infrastructure (Respondent), ...