Tag: Section 11

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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Law is a Force for Justice, Not Absurdity: Supreme Court on Rent Arrears Eviction Case
9Feb By The Legal ChamberNo Comments
Supreme Court

Law is a Force for Justice, Not Absurdity: Supreme Court on Rent Arrears Eviction Case

The Supreme Court held that in appeals challenging eviction orders under Section 12(3) of the Kerala Buildings Act, the Appellate Authority is not required to mandatorily re-initiate the entire Section 12 procedure. The deposit of admitted arrears, as determined by the Rent Controller, is a precondition to contest the appeal, unless supervening events warrant a fresh application. Facts Of The Case: The appellants are landlords who filed eviction petitions against the respondent-tenant for two shops in Kochi, alleging non-payment of rent since early 2020. The Rent Controller, relying on a prior money decree for arrears, passed orders under Section 12(1) of the Kerala Buildings Act, directing the tenant to pay substantial outstanding and future rents. Upon the tenant's failure to comply, e...
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Supreme Court Dismisses Arbitration Petition Due to Limitation Issues
29Dec By The Legal ChamberNo Comments
Supreme Court

Supreme Court Dismisses Arbitration Petition Due to Limitation Issues

The Supreme Court dismissed the petition for appointment of an arbitrator under Section 11(5) of the Arbitration and Conciliation Act, 1996. The Court held that the underlying claim for recovery of money was hopelessly barred by limitation, rendering the appointment of an arbitrator untenable in law. Facts Of The Case: The case involves a dispute arising from a partnership deed containing an arbitration clause. The petitioner, residing in the UK, entered into a partnership with the respondent on 20.09.2014, succeeding an earlier partnership involving the petitioner’s sister. The petitioner alleged that he paid substantial sums amounting to Rs. 2.31 crores, relying on a clause entitling him to 75% of profits from a property purchased on 04.05.2016, but received nothing. The partnership wa...
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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...
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