Professional Documents
Culture Documents
Arbirtration Case Briefs
Arbirtration Case Briefs
12. Sayeed Ahmed And Company Vs. State of Uttar Pradesh reported in (2009) 12 SCC 26;
Union of India Vs. Krafters Engineering & Leasing Pvt. Ltd.reported in (2011) 7 SCC
279;Tehri Hydro Development Corpn Ltd. Vs. Jai Prakash Associated Ltd. reported in (2012)
12 SCC 10 : Court made no distinction between the original period of contract and the extended
period during which the contractor worked.
13. Satyanarayana Construction Co. Vs. Union of India reported at (2011) 15 SCC 101 : The
arbitrator is not empowered to rewrite the terms of the contract and make an award contrary to
the express terms of the contract in respect of the agreed rate on various items or in the face of
prohibition in the contract.
14. Ramachandra Reddy & Co. Vs. State of A.P. & Ors. reported at 2001 (4) SCC 241 : Extension
of time cannot entitle the respondent to escalation in the absence of a clause enabling grant of
escalation or in the face of a clause prohibiting escalation.
15. Associate Builders Vs. Delhi Development Authority reported at 2015 (3) SCC 49 : If the
award is patently illegal and in breach of fundamental policy of Indian law the award is liable to
be set aside.
4. K.N. Sathyapalan Vs. State of Kerala & Anr. reported at 2007 (13) SCC 43 ; Unreported
judgment of Division Bench in State of West Bengal Vs. S.N. Bhagat (MANU/WB/0894/2012)
: For the proposition that prohibitions in a contract do not apply in the event of breach.
5. Mcdermott International Inc. Vs. Burn Standard Co. Ltd. reported at (2006) 11 SCC : The
non-applicability of Section 55 of the Contract Act would apply since it was clearly held that in
cases of this nature, it is the second proviso of section 55 of the Contract Act which applies,
namely, that if there is a breach damages must follow.
Books:
1. Bachawat's Law of Arbitration and Conciliation, 4th Edn., pp. 855- 'Reason' is a ground or
motive for a belief or a course of action, a statement in justification or explanation of belief or
action. It is in this sense that the award must state reasons for the amount awarded.
2. Hudson on Building Contracts.
called for. However, in cases where an arbitrator exceeds the terms of agreement or passes an
award in the absence of any evidence, which is apparent on the face of the award, the same
could be set aside.”
5. In KV Mohd. Zakir v. Regional Sports Centre reported at AIR 2009 SC (Supp) 2517 it held
that the courts should not interfere unless reasons given are outrageous in their defiance of logic
or if the arbitrator has acted beyond his/her jurisdiction.
6. In P.R. Shah Shares & Stock Brothers v. M/s. B.H.H. Securities (P) Ltd. reported at 2012 (1)
SCC 594 it states that a court does not sit in appeal over the award of an arbitral tribunal by re-
assessing or re-approaching the evidence. An award can be challenged only on the grounds
mentioned in S.34(2) of the Act.
7. In Steel Authority of India Ltd. v. Salzgitter Mannesmann; OMP No.736 of 2009, decided on
18th April, 2012 (Delhi HC) it refused to set aside the award in view of court's limited and
restricted powers for judicial intervention as under S.34 of the Act. The court relied upon the
judgment in P.R. Shah Shares (supra) and held that the court cannot sit in appeal over the award
of the tribunal by re-assessing and re-evaluating the evidence.
8. In Associate Builders Vs. Delhi Development Authority reported at (2015) 3 SCC 49 the
Hon'ble Supreme Court subdivided Public Policy of India in four separate and distinct sub-
heads, namely: i) Fundamental Policy of Indian Law;ii) Interest of India iii) Justice or
Morality; and iv) Patent Illegality.
9. Hindustan Zinc Ltd. Vs. Friends Coal Carbonization reported at (2006) 4 SCC 44 : An award
might be set aside as patently illegal, provided the illegality goes to the root of the award. If the
illegality is of a trivial nature it cannot be said that the award is against public policy.
10. Indu Engineering & Textiles Ltd. Vs. Delhi Development Authority reported at (2001) 5 SCC
691 : The Supreme Court held that the Arbitrator being a Judge appointed by the parties, the
award passed by him is not to be interfered with lightly.
11. In Rashtriya Ispat Nigam Ltd. v. Dewan Chand Ram Saran reported at (2012) 5 SCC 306, the
Supreme Court held that when a clause in a contract was capable of two interpretations and the
view taken by the arbitrator was clearly a possible if not a plausible one, it was not possible to
say that the arbitrator had travelled outside his jurisdiction, or that the view taken by him was
against the terms of contract. That being the position, Court could not interfere with the award
and substitute its view in place of the interpretation accepted by the arbitrator.
12. Frost v Knight (1872) LR7 Ex Ch III at 112-113, [1861-73] All ER Rep 22 I at 223-224 :
Quoted Cockburn CJ that "The law with reference to a contract to be performed at a future time,
where the party bound to performance announces prior to the time his intention not to perform
it, as established.”
13. B.R. Herman & Mohatta v. Asiatic Steam Navigation Co. Ltd., AIR 1941 Sind 146 : The
damage is a compensation for the injury sustained that some of money to be given for reparation
of damages suffered should be, as nearly as possible be the sum which will put to injured party
in the same position as he would have been if he had not sustained the wrong for which he is
getting the damages.
14. In P.M. Paul Vs. Union of India reported at 1989 Supp (1) SCC 368 held that ordinarily, the
parties would be bound by the terms agreed upon in the contract, but in the event one of the
parties to the contract is unable to fulfil its obligations under the contract which has a direct
bearing on the work to be executed by the other party, the arbitrator is vested with the authority
to compensate the second party for the extra costs incurred by him as a result of the failure of
the first party to live up to its obligations.
petitioners would be required for a complete and effective adjudication of the dispute between
the parties in suit. The causes of action cannot be dissected, and considering the nature of the
dispute, it cannot be referred to arbitration in its entirety.
2. Atul Singh and Others vs. Sunil Kumar Singh and Others reported in (2008) 2 SCC 602
paragraph 18 and 19 : With regard to the non- compliance of Sub-Section 2 of Section 8 of
1996 Act
4. Oriented Insurance Co. Ltd. v. Narbheram Power and Steel Private Ltd. reported in (2018) 6
SCC 943 following the exposition in Vulcan Insurance Co. Ltd. v. Maharaja Singh reported
in (1976) 1 SCC 943 : There can be no arbitration in cases where the insurance company
disputes or does not accept liability under or in respect of the policy.
overrule the decision of a Court without properly removing the base on which the judgment is
founded.
6. In Jaora Sugar Mills (P) Ltd. v. State of M.P. reported in AIR 1966 SC 416, the Hon'ble
Supreme Court held that a parliamentary legislation which sought to validate a state statute
(which had been held to be ultra vires the legislative competence of the State) would itself be
ultra vires.
7. Mussammat Gulab Koer v. Badshah Bahadur reported in 10 CLJ 420: 13 CWN 1197;Mani
Lal Guzrati v. Harendra Lal Roy reported in (1910) 12 CLJ 556; Scarf v. Jardine reported in
1882 (7) AC 345; Jai Singh v. Union of India and Ors. reported in 1977 (1) SCC ; Delhi Gate
Auto Service Station and Anr. v. Bharat Petroleum Corportation Ltd., Agra and Ors. reported
in 2009(16) SCC 766;Mumbai International Airport vs M/S Golden Chariot Airport & Anr
reported in 2010 (10) SCC 422;Booz Allen Hamilton Inc. v. SBI Home Finance Ltd. and Ors.
reported in 2011 (5) SCC 532 : For the contention that if both the arbitration as well as the suit
are allowed to proceed, there is every likelihood of a conflict of decisions.
4. Kalpana Kothary v. Sudha Yadav reported at (2002) 1 SCC 203 : The scheme of the
arbitration Act of 1940 and 1996 was considered in this case.
5. Heyman v. Darwins Ltd.-- 1942 AC 356 : The law permits the parties to a contract to include in
it as one of its terms an agreement to refer to arbitration disputes which may arise in connection
with it, and the court of England enforce such a reference by staying legal proceedings in
respect of any matter agreed to be referred "if satisfied that there is no sufficient reason why the
matter should not be referred in accordance with the submission.”
6. Vijay Kumar Sharma vs. Raghunandan Sharma reported at (2010) 2 SCC 486 : The obvious
intention of this provision is that neither the filing of any suit by any party to the arbitration
agreement nor any application being made by the other party under section 8 to the court,
should obstruct or preclude a party from initiating any proceedings for appointment of an
arbitrator or proceeding with the arbitration before the Arbitral Tribunal.
Books
1. Justice R.S. Bachawat's Law of Arbitration and Conciliation, Sixth Edition, Vol. I (Sections 1
to 34) at page 695 published by LexisNexis.
2. “Law Relating to Arbitration and Conciliation" by Dr. P.C. Markanda.
disputes which may arise in connection with it, and the court of England enforce such a
reference by staying legal proceedings in respect of any matter agreed to be referred "if satisfied
that there is no sufficient reason why the matter should not be referred in accordance with the
submission.”
3. Vijay Kumar Sharma vs. Raghunandan Sharma reported at (2010) 2 SCC 486 : Pendency of
an application under section 8 before any court will not come in the way of an arbitration being
commenced or continued and an arbitral award being made.
4. Rashtriya Ispat Nigam Ltd. v. Verma Transport Co. reported in (2006) 7 SCC 275 : This was
cited in order to clear the stance on the meaning of ‘first statement on the substance of dispute’.
Books
1. Justice R.S. Bachawat's Law of Arbitration and Conciliation, Sixth Edition, Vol. I
(Sections 1 to 34) at page 695 published by LexisNexis.
including the counter- claim. It is argued that the arbitrator has failed to consider the counter-
claim and, accordingly, misconducted himself.
Books
1. Hudson's Building and Engineering Contracts (Volume I) 11th Editioon and Halsbury's
Laws of England, 4th Edition (Volume 4) : To suggest that architect has a very important role
to play and his role is to be assessed on the basis of the terms of the contract.
2. Paragraph 1324 of Halsbury's Laws of England, 4th Edition : It has been referred to show
that the architect or engineer has no general authority to vary, waive or dispense with any
conditions contained in the contract without express authority to do so.
2. Lord Mansfield in Holman v. Johnson stated that the principle of public policy is ex dolo
malo non oritur actio. No Court of law will lend its aid to a man who founds his cause of action
upon an immoral or illegal act.
3. ONGC Ltd. Vs. Garware Shipping Corporation Ltd. reported at 2007(13) SCC 434: It was
held that under Section 34 of the Act, an award can be set aside on the ground that it is
erroneous in law.
4. In KV Mohd. Zakir v. Regional Sports Centre reported at AIR 2009 SC (Supp) 2517 : It held
that the courts should not interfere unless reasons given are outrageous in their defiance of logic
or if the arbitrator has acted beyond his/her jurisdiction.
5. In P.R. Shah Shares & Stock Brothers v. M/s. B.H.H. Securities (P) Ltd.; 2012 (1) SCC 594 :
It states that a court does not sit in appeal over the award of an arbitral tribunal by re-assessing
or re-approaching the evidence. An award can be challenged only on the grounds mentioned in
S.34(2) of the Act.
6. In Steel Authority of India Ltd. v. Salzgitter Mannesmann; OMP No.736 of 2009, decided on
18th April, 2012 (Delhi HC) : Court refused to set aside the award in view of court's limited and
restricted powers for judicial intervention as under S.34 of the Act. The court relied upon the
judgment in P.R. Shah Shres (supra) and held that the court cannot sit in appeal over the award
of the tribunal by re-assessing and re-evaluating the evidence.
Books
1. FIDIC - An Analysis of International Construction Contracts : To look into the aspects of
turnkey contracts.
2. Halsbury's Laws of England, 4th Edition.
of India, A.P.O No.329 of 2013, A.P. No.296 of 2007, judgment dated 24th December,
2013;Sayeed Ahmed & Company Vs. State of Uttar Pradesh & Ors.reported at (2009) 12 SCC
26 : For the contention that notwithstanding the fact that the petitioner did not raise any
objection before the learned Single Judge with regard to the jurisdiction of the learned Arbitrator
to decide the dispute between the parties, the petitioner is not precluded from raising such plea
before the arbitrator during the proceeding.
2. SBP & Co. Vs. Patel Engineering Ltd. & Anr. reported at (2005) 8 SCC 610; Konkan
Railway Corporation Ltd. Vs. Mehul Construction Co. reported at 2000 (7) SCC 201 : The
arbitrator would be competent to decide the jurisdictional issue notwithstanding a reference is
made to him as the order appointing an arbitrator is an administrative order and not a judicial
order. All appointments made are to be treated as valid but any objections to be treated as per
Section 16 of the Act.
3. M/s. Sree Kamatchi Amman Constructions Vs. Divisional Railway Manager (Works),
Palghat & Ors. reported at AIR 2010 SC 3337;Union of India Vs. Krafters Engineering &
Leasing Pvt. Ltd.Reported at (2011) 7 SCC 279;Union of India Vs. M/s. Concrete Products
and Const. Co. Etc.reported at AIR 2014 SC 1914 : The awarding of interest on the security
amount is without jurisdiction inasmuch as the arbitrator could not have disregarded the
expressed bar in contract against the claim for interest on such security amount.
an arbitrator as the respondent Corporation failed to act as required under Clause 29 (the
arbitration clause).”
2. Punj Lloyd Ltd. Vs. Petronet MHB Ltd. reported at (2006) 2 SCC 638 which would be
evident from Paragraphs 15 to 20.
clause and it is not possible to give effect to all of them then the rule of construction is well-
establish that that it is the earlier clause that must override the later clauses and not vice versa.
2. Lord Wrenbury stated in Forbes vs. Git reported at (1922) 1 AC 256 : "If in a deed an earlier
clause is followed by a later clause which destroys altogether the obligation created by the
earlier clause, the later clause is to be rejected as repugnant and the earlier clause prevails. In
this case the two clauses cannot be reconciled and the earlier provision in the deed prevails over
the later.”
it is often encountered in High Courts that two or more mutually irreconcilable decisions of the
Supreme Court are cited at the Bar.
arbitrator to award interest pendente lite. Continuity and certainty is a highly desirable feature of
law.(v) Interest pendente lite is not a matter of substantive law, like interest for the period
anterior to reference (pre-reference period). For doing complete justice between the parties, such
power has always been inferred.
2. Union of India Vs. Ambica Construction reported at (2016) 6 SCC 36.
and the terms of the contract, there is no scope for the court to reappraise the matter as if this
were an appeal and even if two views are possible, the view taken by the arbitrator would
prevail. So long as an award made by an arbitrator can be said to be one by a reasonable
person no interference is called for. However, in cases where an arbitrator exceeds the terms
of the agreement or passes an award in the absence of any evidence, which is apparent on the
face of the award, the same could be set aside.
2. McDermott International Inc. Vs. Burn Standard Co. Ltd. reported at 2006 (11) SCC 181
Paragraphs 55 to 57: “Another important change which has been made by reason of the
provisions of the 1996 Act is that unlike the 1940 Act, the Arbitrator is required to assign
reasons in support of the award. A question may invariably arise as to what would be meant
by a reasoned award.”
3. In Konkan Railway Corporation Ltd. v. Mehul Construction Company [(2000) 7 SCC 201],
the Court emphasized the mandatoriness of giving reasons unless the arbitration agreement
provides otherwise.”
4. Excise and Taxation Officer-cum-Assessing Authority v. Gopi Nath & Sons; 1992 Supp (2)
SCC 312, it was held: “It is, no doubt, true that if a finding of fact is arrived at by ignoring or
excluding relevant material or by taking into consideration irrelevant material or if the
finding so outrageously defies logic as to suffer from the vice of irrationality incurring the
blame of being perverse, then, the finding is rendered infirm in law.”
5. In Kuldeep Singh v. Commr. Of Police; (1999) 2 SCC 10, it was held: “A broad distinction
has, therefore, to be maintained between the decision which are perverse and those which are
not. If a decision is arrived at on no evidence or evidence which is thoroughly unreliable and
no reasonable person would act upon it, the order would be perverse. But if there is some
evidence on record which is acceptable and which could be relied upon, howsoever
compendious it may be, the conclusions would not be treated as perverse and the findings
would not be interfered with.”
6. In P.R. Shah, Shares & Stock Brokers (P) Ltd. v. B.H.H. Securities (P) Ltd; (2012) 1 SCC
594, this Court held:- “A court does not sit in appeal over the award of an Arbitral Tribunal
by reassessing or reappreciating the evidence. An award can be challenged only under the
grounds mentioned in Section 34(2) of the Act. The Arbitral Tribunal has examined the facts
and held that both the second respondent and the appellant are liable. The case as put forward
by the first respondent has been accepted. Even the minority view was that the second
respondent was liable as claimed by the first respondent, but the appellant was not liable only
on the ground that the arbitrators appointed by the Stock Exchange under Bye-law 248, in a
claim against a non-member, had no jurisdiction to decide a claim against another member.
The finding of the majority is that the appellant did the transaction in the name of the second
respondent and is therefore, liable along with the second respondent. Therefore, in the
absence of any ground under Section 34(2) of the Act, it is not possible to re-examine the
facts to find out whether a different decision can be arrived at.”
7. State of West Bengal Vs. B.K. Mondal & Sons reported at AIR 1962 SC 779 in Paragraphs
13 to 18 : The following conditions must be satisfied in order to in a claim passed in Section
70 of the Indian Contract Act which are:-(i) the person must do it lawfully,(ii) the same was
not intended to be done gratuitously and(iii) the person must enjoy the benefit of such doings.
Books
1. Bachawat's Law of Arbitration and Conciliation, Fourth Edition, pages 855-856, it is
stated: “'Reason' is a ground or motive for a belief or a course of action, a statement in
justification or explanation of belief or action. It is in this sense that the award must state
reasons for the amount awarded.”
& Anr. Vs. Haldia Petrochemicals Ltd. reported at 2014 (1) Cal LT 83(SC) on this
proposition was expressly followed. It was held:-"The judgment cited at the bar would show
that Section 5 of the Arbitration & Conciliation Act is a general principle which would be
applicable to all arbitration proceedings irrespective of fact whether it is a domestic
arbitration or an international arbitration.”
5. Enercon (India) Ltd. & Ors. Vs. Enercon GMBH & Anr. reported at 2014 (5) SCC 1 in
Paragraph 90 in which the Hon'ble Supreme Court emphasized the need for least
intervention by Courts in arbitration matter in view of Section 5 of the Act.
6. Bharat Aluminium Company Vs. Kaiser Aluminium reported at 2012(9) SCC 552
Paragraphs 123, 151 to 153 : The seat of arbitration determines the curial law that is to
apply. In the instant case, the seat of arbitration is Singapore and the proceeding for setting
aside of the award could have been filed only before the appropriate court in Singapore.
Section 11 of the old Act and Section 13 of the new Act held that the change in language was
no accidental and gave rise to the inference that the Parliament deliberately refrained from
giving the Board power to delegate any of its powers and functions to a committee with the
consent of the Minister.
6. In Lalu Prasad Yadav & Anr. Vs. State of Bihar & Anr. (2010 (5) SCC 1, Paragraph 39),
the Hon'ble Supreme Court approved D.R.
7. In Serish Maji v. Nisith Kumar Dolui reported at 1999 (1) CHN 365 : The fact that Section
5 or its principles have been specifically incorporated in these various sections and their
omission from Section 8 appears to be deliberate evidencing the intention of the legislature
not to grant an applicant under Section 8 similar benefit. By this omission in Section 8 it
would appear that the sections of the Limitation Act have been expressly excluded within the
meaning of Section 29(2) of the Limitation Act.”
8. Venture Global Engineering v. Satyam Computer Services Ltd. reported at 2008 (4) SCC
190.
Books
1. Principles of Statutory Interpretation by G.P.Singh was quoted -"Just as use of same
language in a later statute as was used in an earlier one in pari materia is suggestive of the
intention of the legislature that the language so used in the later statute is used in the same as
in the earlier one, change of language in a later statute in pari materia is suggestive that
change of interpretation is intended.”
emerging from Section 9 CPC is not an absolute right, but contains inbuilt restrictions. It is an
accepted principle that jurisdiction of the court can be excluded.”
3. National Highway Authority of India Vs. Oriental Structure Engineer Ltd. - Gammon
India Ltd. (JV) reported at AIR 2013 Delhi 67 held that 1996 Act in effect displaces all such
aspects of substantive and procedural law in respect of which there is an explicit or implied
reference in the 1996 Act.
4. Enercon (India) Ltd. & Ors. Vs. Enercon GMBH & Anr. reported at 2014 (5) SCC 1 in
Paragraph 90 the Hon'ble Supreme Court emphasized the need for least intervention by
Courts in arbitration matter in view of Section 5 of the Act.
5. Bharat Aluminium Company Vs. Kaiser Aluminium Technical Services Inc. reported at
2012 (9) SCC 552 in Paragraph 176 it was held that as a matter of law, an inter-parte suit
simply for interim relief pending arbitrations, even if it be limited for the purpose of
restraining dissipation of assets would not be maintainable.
6. Reliance Industries Ltd. & Anr. Vs. Union of India reported at 2014 (7) SCC 603 the
Hon'ble Supreme Court held:-"We are also of the opinion that since the ratio of law laid down
in Balco has been made prospective in operation by the Constitution Bench itself, we are
bound by the decision rendered in Bhatia international.”
Books
1. P. Ramanatha Aiyar's 'The Law Lexicon' (2nd Edn. 1997) as under:'A general collection or
compilation of laws by public authority; a system of law; a systematic and complete body of
law, on any subject such as Civil Procedure Code, Code of Criminal Procedure, Penal code.
Etc.
required to first make an attempt to amicably settle their disputes and only upon failure, the
parties could refer their disputes to the arbitration as per GAFTA clause for rice and
arbitration rules 125.
3. Shrilal Mahal Ltd. Vs. Progetto Grano SPA reported at (2014) 2 SCC 433 : The public
challenge to the enforceability of the foreign award as opposed to public policy is not as wide
as Section 34 of the Arbitration and Conciliation Act, 1996.
4. Syed Mohd. Salie Labbai & Ors. Vs. Mohd. Hanifa & Ors. reported at (1976) 4 SCC 780 :
To contend that present application is barred under res judicata.
5. Bhanu Kumar Jain Vs. Archana Kumar & Anr. reported at (2005) 1 SCC 787 as also by
the English Courts in Fidelitas Shipping Co. Ltd. Vs. V/O Exportchleb (1966) 1 QB 630
and SCF Finance Company Ltd. Vs. Masri reported at 1987 (1) All E.R. 194 : A brief
guideline of Issue Estoppel and Cause of Action Estoppel .
the enforceability of the award on the ground of public policy can be raised even without any
pleading.
7. Shamsher Jute Mills Ltd. v. Sethia (London) Ltd. reported at (1987) 1 Lloyds Law Report
388 at Pages 390-393.
Books
1. Halsbury's Laws of England, 3rd Edn. Vol. 8, pg.130, it is said that - "Any agreement which
tends to be injurious to the public or against the public good is void as being contrary to
public policy... It seems however that this branch of the law will not be extended.
2. Vervaeka v. Smith10; Dicey & Morris, The Conflict of Laws, 11 th Edn., Vol. I p. 92;
Cheshire & North, Private International Law, 12th Edn., pp. 128 : A distinction is drawn
while applying the said rule of public policy between a matter governed by domestic law and
a matter involving conflict of laws. The application of the doctrine of public policy in the
field of conflict of laws is more limited than that in the domestic law and the courts are
slower to invoke public policy in cases involving a foreign element than when a purely
municipal legal issue is involved.
3. R.H. Graveson : Conflict of Laws, 7th Edn., p. 165: "This concern of law in the protection
of social institutions is reflected in its rules of both municipal and conflict of laws. Although
the concept of public policy is the same in nature in these two spheres of law, its application
differs in degree and occasion, corresponding to the fact that transactions containing a foreign
element may constitute a less serious threat to municipal institutions than would purely local
transactions.”
4. Jack on Documentary Credits, 4th Edition has also discussed this aspect of the matter. The
learned Author observed:-"Whether the credit is conditional or absolute payment, if the seller
presents documents to the bank that do not comply with the credit and are rejected the seller
cannot sue the buyer directly unless the buyer has actually obtained the goods. This is so
whether or not the goods conform to the contract.