www.courtkutchehry.com YOUTUBE VIDEOS- THE-BRIEF MULTIPLE ARBITRATION TRIBUNALS & CURIOUS GROUND TAKEN FOR SETTING ASIDE ARBITRAL AWARD
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The-Brief Multiple Arbitration Tribunals & Curious Ground taken for Setting aside Arbitral award
The-Brief Last Week
Gammon India Ltd. & Anr Vs. National
Highways Authority Of India, (2020) 06 DEL CK 0118, OMP 680/2011 (New No. O.M.P. (COMM)392/2020)
(23.06.2020)
This judgement sets a course for future filing of Petitions under Section 34 of the Arbitration and Conciliation Act and is therefore of immense importance.
The first sets the
tone, rather eloquently for the judgement.
“Arbitration was to
be the panacea for the woes of litigation.”
This is another
case which makes an argument against provisioning of arbitration. 3 Arbitration
claims were filed before 3 different arbitral tribunals at different times and
even after 20 years from the date of the agreement the parties are still
battling in court.
The petitioner
raised a challenge to an Arbitral Award whereby the claim of the petitioner by
the majority (2:1) was declined.
A rather curious
submission of the petitioner:
“findings in Award
no.3 be relied upon, for setting aside Award no.2.”
Question for
consideration:
“Whether it is
permissible for the Contractor to jettison the findings in Award No.3 to argue
that Award No.2 ought to be set aside”?
The court dismissed
the challenge to the Arbitral Award but not without giving very important
findings.
Far Reaching
findings of the Hon’ble Court:
In respect of a
particular contract or a series of contracts that bind the parties in a legal
relationship, the endeavour always ought to be to make one reference to one
Arbitral Tribunal;
If under a
contract, disputes have arisen and the arbitration clause is to be invoked, at
different stages, the party invoking arbitration ought to raise all the claims
that have already arisen on the date of invocation for reference to
arbitration;
If an Arbitral
Tribunal is constituted for adjudicating some disputes under a particular
contract or a series thereof, any further disputes which arise in respect of
the same contract or the same series of contracts, ought to ordinarily be
referred to the same Tribunal;
In cases belonging
to Category (c) involving different parties and the same organisation, where
common/overlapping issues arise, an endeavor could be made to constitute the
same Tribunal;
At the time of
filing of petitions under Section 11 or Section 34 or any other provision of
the Arbitration and Conciliation Act, 1996, specific disclosure ought to be
made by parties as to the number of arbitration references, Arbitral Tribunals
or court proceedings pending or adjudicated in respect of the same contract and
if so, the stage of the said proceedings;
If there are
multiple challenges pending in respect of awards arising out of the same
contract, parties ought to bring the same to the notice of the Court
adjudicating a particular challenge so that all the challenges can be
adjudicated comprehensively at one go.
The judgement is
important for the following reasons:
It discusses the
law on multiple arbitrations in respect of a single contract. It sets out new
practise and filing directions for petitions under section 34 of the
Arbitration and Conciliation Act.
We will keep you
updated. Please stay tuned for the Last Week series. Presented by TheBrief
The-Brief Legal News by Sanam Siddiqui & Dheeraj Gupta Peritia Law Chambers
s.siddiqui@peritia.in dheeraj@peritia.in TheBriefLegalNews@gmail.com
PeritiaLaw@gmail.com Dheeraj & Sanam TheBrief The-Brief
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