[Guest post by RV Prabhat, who is a practising advocate before the Delhi High Court. He can be contacted at [email protected]] The question of applicability of the provisions of Part I of the Arbitration and Conciliation Act 1996 (hereinafter referred as 1996 Act) to the Foreign Seated Arbitrations has time and again come up before the Supreme Court of India (“Supreme Court”) and...
The Bombay High Court on Implied Exclusion
The Bombay High Court has recently given an important judgment in Harkirat Singh v Rabobank. It has revisited the law on the implied exclusion of Part I of the Indian Arbitration and Conciliation Act, 1996, which we have considered this on a number of occasions on this Blog. The point remains of great practical importance even though Bhatia International has been overruled because it is a live...
Reliance v Union of India: Implied Exclusion of Part I of the Arbitration Act
The Supreme Court recently gave an important judgment (Reliance Industries Ltd v Union of India) on the implied exclusion of Part I of the Arbitration and Conciliation Act, 1996, for arbitration agreements that are governed by Bhatia International (ie, all agreements concluded before 6 September 2012). RIL v UoI is likely to be welcomed by the arbitration community as further evidence of the...
The Delhi High Court on Foreign Awards and Implied Exclusion of Section 34
We have discussed on several occasions the scope of the proposition in paragraph 32 of Bhatia International that the parties may “expressly or impliedly” exclude the applicability of Part I of the Arbitration Act in cases in which it would be otherwise applicable. The Court has previously held that Part I is not impliedly excluded merely by choosing a foreign substantive law (Indtel Technical...
The Role of the Seat of Arbitration in Implied Exclusion
It is becoming increasingly difficult to state with confidence the prevailing position of law in India on a question that should, in principle, have a straightforward answer: in what circumstances will the Indian courts decline to exercise jurisdiction under the Arbitration and Conciliation Act, 1996 [“A and C Act”] and what must a contracting party which wishes to achieve this result insert in...
The 3/4 Formula to Determine Implied Exclusion
(In the following post, Mr Adithya Reddy, Advocate, Madras High Court, considers the law on implied exclusion of Part I of the Arbitration Act) “…we hold that the provisions of Part I would apply to all arbitrations and to all proceedings relating thereto. Where such arbitration is held in India the provisions of Part I would compulsory apply and parties are free to deviate only to the extent...
Bankruptcy Code: Exclusion of Civil Courts in Monetary Matters?
[The following post is contributed by Bhavin Gada, Partner at Economic Laws Practice, Advocates and Solicitors, and Manendra Singh, Associate Manager at Economic Laws Practice, Advocates and Solicitors. The views of authors are personal.] Preface It is well known that in India a civil court of relevant jurisdiction is the usual forum for resolving not just disputes related to debt recovery, but...
Venue vs. Seat: A Curious Case for the Indian Judiciary’s Self-Restraint
[Divpriya Chawla is an associate with a law firm in Delhi] The crucial importance of the choice of the ‘seat’ in an international arbitration is universally accepted and cannot be overstated due to its impact on the questions of applicable law, nature of supervisory jurisdiction, post-award challenge proceedings, and enforceability (2015 International Arbitration Survey). Despite the profound...
The Importance of Determination of Seat under Indian Arbitration Law
[Saumitra Shrivastava is a IV year B.A. LLB (Hons,) student at HNLU, Raipur] Introduction In international commercial arbitration the concepts of place, seat and venue are of tremendous importance as they determine which law and whose jurisdiction would be applied in a case. The courts of a country could interfere in any arbitral proceedings only if they have jurisdiction to do so. For instance...
Guest Post: Mere Choice of Foreign Seat can exclude Part I of Arbitration Act 1996- Pre-BALCO Arbitrations?
(The following guest post is contributed by RV Prabhat, who is a practising advocate in the Delhi High Court) The question of applicability of the provisions of Part I of the Arbitration and Conciliation Act 1996 (hereinafter referred as 1996 Act) to the Foreign Seated Arbitrations has time and again come up before the Supreme Court of India (“Supreme Court”) and various High Courts...
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