[Shyamal Anand is a Principal Associate at Shardul Amarchand Mangaldas and Co and Divyansh Morolia a IV year student, National Law Institute University, Bhopal] As commentators have observed, arbitration is essentially a private process, having party autonomy and consent at its core. The arbitration tribunal derives its jurisdiction from the agreement of the parties. However, under some limited...
Revisiting Standard Chartered Bank: Clarifying the ‘Special Equities’ Exception to Unconditional Bank Guarantees
[Chiranth Mukunda and Vikram Raj Nanda are 2nd Year BA.LLB (Hons.) Students at the National Law School of India University, Bengaluru] In a recent decision, the Delhi High Court in Director General Project Varsha v. Navayugavanoordjv, dealt at length with the ‘special equities’ exception to the invocation of unconditional bank guarantees. Though the law in this regard is generally...
Levelling the Playing Field: Supreme Court Decides on Unilateral Appointment of Arbitrators
[Niti Dixit and Abhishek Tewari are Partners and Zahra Aziz an Associate at S&R Associates, Advocates] On November 8, 2024, a five-judge bench of the Supreme Court of India considered the issue of unilateral appointment of arbitrators and selection of arbitrators from a panel of arbitrators curated by Indian public sector undertakings (“PSUs”), and delivered its judgment in Central...
Clarifying “Unconditional” Withdrawals: When Does Interest on Awarded Amounts Truly Stop?
[Ashish Dholakia is a Senior Advocate at the Delhi High Court, Rohan Chawla is an Advocate at the Delhi High Court, and Ria Bansal is a 4th-year B.A., LL.B. (Hons.) student at Rajiv Gandhi National University of Law] The 2015 amendments to the Arbitration & Conciliation Act, 1996 (‘A&C Act’) dramatically changed the arbitration regime in India. A challenge to an award under section...
Navigating Legal Conundrums: The Interplay Between India’s Netting Act and the Insolvency Code
[Aditya Chhangani is a practising advocate at the Rajasthan High Court] The Bilateral Netting of Qualified Financial Contracts Act, 2020 (“Netting Act”) came into force with the goal of fostering stability and competitiveness in the Indian financial sector. In simple terms, netting means setting off any obligations or claims arising out of a Qualified Financial Contract (“QFC”). A single net...
Co-Extensive Liabilities and Subrogation Rights in Corporate Insolvency: The Supreme Court’s Stance
[Parth Birla is a fourth-year student at Hidayatullah National Law University, Raipur] Recently, the Supreme Court, in BRS Ventures Investments Ltd. v. SREI Infrastructure Finance Ltd., had the opportunity to interpret the overlapping mechanisms of the concept of Guarantee in the Corporate Insolvency Resolution Process. This case delves into the intricacies of the Insolvency and Bankruptcy Code...
Assignment and Arbitration Agreements: Assignee’s “Burden” to Arbitrate
[Chiranth Mukunda is a 2nd Year B.A., LL.B. (Hons.) Student at National Law School of India University, Bengaluru] In DLF Limited v. PNB Housing Finance Ltd (22 March 2024), while considering a petition under section 11 of the Arbitration and Conciliation Act 1996 ( A&C Act), the Delhi High Court observed that an assignee would be bound by the arbitration agreement in a claim brought by the...
The Debate Over Supreme Court’s Curative Intervention in Arbitration
[Madhav Goel and Anjali Sharma are researchers at the TrustBridge Rule of Law Foundation] In April 2024, the Supreme Court of India in Delhi Metro Rail Corporation v. Delhi Airport Metro Express Private Limited (‘DMRC v. DAMEPL’) overturned an arbitral award of nearly Rs. 8,000 cr against the DMRC which was to be paid to DAMEPL, a joint venture between Reliance Infrastructure Limited and...
A Critical Analysis of SEBI’s Crackdown on Fantasy Trading
[Aamir Kapadia and Shivam Yadav are final-year BBA, LLB (Hons.) students at Jindal Global Law School] On 27 May 2024, the Securities and Exchange Board of India (“SEBI”) issued a circular, “Norms for Sharing of Real Time Price Data to Third Parties” (“the Circular”) to, inter alia, stock exchanges generally restricting them from sharing real-time market data with third-party entities (primarily...
Deciphering the Incorporation of Arbitral Clauses and Contractual Intent
[Ria Bansal is a 3rd year B.A., LL.B. (Hons.) student at Rajiv Gandhi National University of Law, Punjab] Recently, the Supreme Court of India in NBCC (India) Ltd. vs. Zillion Infraprojects (P) Ltd. set aside the appointment of a sole arbitrator under section 11(6) of the Arbitration and Conciliation Act, 1996 (“the Act”) on the basis that the arbitration clause had not been incorporated within...
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