Section 9 Arbitration Act - The Legal Chamber

The Supreme Court held that a party cannot raise a plea of estoppel against law after its own conduct induced the other party to alter its position to its detriment. The doctrine of election and estoppel by conduct precludes a party from approbating and reprobating, thereby preventing it from challenging the validity of a compromise decree it had previously accepted. Facts Of The Case: The respondents, claiming the appellants had been removed as trustees, filed a suit for a perpetual injunction to restrain them from entering a school run by Guru Tegh Bahadur Charitable Trust. The Trial Court rejected the plaint under Order VII Rule 11 CPC, holding the suit was barred by Section 92 CPC. During the pendency of the respondents' appeal against this order, the parties mutually appointed a sol...

The Supreme Court upheld the High Court's interim order restraining encashment of a bank guarantee during pending Section 9 arbitration proceedings under the Arbitration Act. The Court emphasized that judicial interference with bank guarantees is permissible only to prevent irretrievable injustice, while leaving open questions regarding maintainability of Article 227 petitions against interlocutory orders in arbitration matters. The ruling preserves the arbitral process by directing the Commercial Court to decide the Section 9 petition within eight weeks, subject to continued extension of the bank guarantee validity. The judgment balances contractual sanctity of bank guarantees with equitable considerations in ongoing arbitration. Facts Of The Case: Jindal Steel & Power Ltd. awarded ...

Tag: Section 9 Arbitration Act

Supreme Court Clarifies Jurisdiction Over Bank Guarantees in Section 9 Arbitration Petitions