Arbitration Annual Digest 2025- Part 1

Supreme Court Clause Saying Arbitration "May Be Sought" Doesn't Constitute A Binding Arbitration Agreement : Supreme Court Cause Title: Bgm And M-Rpl-Jmct (Jv) Versus Eastern Coalfields Limited Citation : 2025 LiveLaw (SC) 731 The Supreme Court held that a clause in an agreement that arbitration "may be sought" to resolve disputes between the parties will not...

[Arbitration Act] S.37(1)(c) Applies To Entire S.34; Dismissal On Limitation Or Technical Grounds Is Appealable: Delhi High Court

The Delhi High Court recently observed that the application of Section 37(1)(c) of the A&C Act is not limited to any specific sub-section, and applies to the entire Section 34 of the A&C Act. The Court, while clarifying the law laid down in Chintels India Ltd. v. Bhayana Builders Pvt. Ltd., [2021 INSC 76], observed that a dismissal of a Section 34 application on the grounds...

Delhi High Court Slaps ₹1 Lakh Costs On Securities Brokerage That Undertook Trades Without Client Mandate

The Delhi High Court recently pulled up a stock brokerage firm for indulging in unauthorised trading and “sharp practices” aimed at earning commission income at the cost of investors. It also imposed a costs of Rs 1 lakh for prolonged harassment of its client. Dismissing an appeal by Trustline Securities Limited, the court held that trades executed without client instructions and...

Delhi High Court Upholds Arbitral Referral Of Trademark & Passing Off Dispute Involving "Pind Balluchi" Restaurant

The Delhi High Court Bench of Justices Om Prakash Shukla and C. Hari Shankar have allowed the Section 8, Arbitration and Conciliation (“ACA”) application seeking referral for arbitration between M/s Triom Hospitality (“Triom”) and M/s J.S. Hospitality Services Pvt. Ltd. (“J.S.”) regarding the registered trademark of the famous “Pind Balluchi”...

Arbitration Clause In Expired Lease Cannot Be Invoked To Execute Fresh Lease: Calcutta High Court

The Calcutta High Court has recently held that an arbitration agreement in an expired lease deed cannot be automatically extended to govern disputes relating to the execution of a fresh lease, even if the proposed lease is claimed to arise from prior correspondence between the parties. Justice Aniruddha Roy in an order dated 23 December, 2025, dismissed an application filed by HDFC...

Past Employment With Party Does Not Make Arbitrator Ineligible: J&K&L High Court Reaffirms

The Jammu and Kashmir and Ladakh High Court on Monday reiterated that an arbitrator does not become ineligible merely because he was employed by one of the parties in the past. The court held that past government service, by itself, does not indicate bias under the Arbitration and Conciliation Act unless it is shown that the arbitrator has a continuing business relationship or had advised...

Bombay High Court Rejects Mumbai Metro's Arbitration Request Application, Rules Settlement Agreement Supersedes Original Contract

The Bombay High Court recently rejected the Mumbai Metro One Private Limited's (MMOPL) request to have its dispute with Hindustan Construction Company (HCC) resolved by way of arbitration. The Court deciding that the arbitration clause in the original contract no longer applies to new issues emerging from the settlement, ruled that once a "full and final" settlement agreement is executed,...

Res Judicata Not Attracted Where Issue Was Not Framed In Earlier Proceedings: Bombay High Court Partially Modifies Arbitral Award

The Bombay High Court has held that res judicata does not apply where the issue in earlier proceedings was neither framed nor directly adjudicated and that the court exercising jurisdiction under section 34 of the Arbitration and Conciliation Act, 1996 (Arbitration Act) can modify an award by reducing the rate of interest where bad part of an award is severable from the good...

Non-Obstante Clause U/S 13(2) Commercial Courts Act Prevails Over S.10 Delhi HC Act: Delhi High Court Dismisses Arbitral Appeals

The Delhi High Court Bench of Chief Justice Devendra Kumar Upadhyaya and Justice Tushar Rao Gedela while dismissing an appeal under Section 10, Delhi High Court Act (“DHC Act”) and Section 13(2), Commercial Courts Act (“CC Act”) observed that the expression “any other law for the time being in force” used in Section 13(2), CC Act encompasses in its fold the provisions of...

Fresh Arbitration Notice is Mandatory For Second Round Of Arbitration After Earlier Award Is Set Aside: Kerala High Court

The Kerala High Court has held that a fresh arbitration notice under section 21 of the Arbitration and Conciliation Act, 1996 (Arbitration Act) is mandatory for initiating a second round of arbitral proceedings after an earlier arbitral award has been set aside even when the award was declared as a nullity due to invalid appointment of the arbitrator. Justice S. Manu while...

Bombay High Court Quashes ₹173.72 Cr Arbitral Award Against Thermax, Holds Arbitrator's Findings To Be Based On Lack Of Evidence

The Bombay High Court has recently set aside an arbitral award that mandated engineering giant Thermax Limited to pay ₹173 crore in favor of Rashtriya Chemicals & Fertilizers Ltd. (RCF). The award primarily directed payments towards the additional costs RCF incurred for power due to failure of gas turbine generators. Considering a challenge under Section 34 of the Arbitration...

Municipal Corporations Not Entitled To Unconditional Stay U/S 36 A&C Act; Treated At Par With Private Parties: P&H High Court

The Punjab and Haryana High Court Bench of Chief Justice Sheel Nagu and Justice Sanjiv Berry has observed that being a statutory body does not entitle a party to claim unconditional grant of stay under Section 36, Arbitration and Conciliation Act (“ACA”) as a matter of right. And if a conditional stay is granted, a statutory body is to be treated at par with a private...