The Benefit Of Section 14 Of The Limitation Act Can Be Invoked For Exclusion Of Time In A Proceeding Under Section 34 Of The Arbitration And Conciliation Act: Calcutta High Court

The Calcutta High Court bench of Justice Sabyasachi Bhattacharyya has held that under Section 14 of the Arbitration and Conciliation Act, 1996, the time spent in a writ petition on the same cause of action can be excluded from the limitation period for filing an application under Section 34 of the Arbitration and Conciliation Act, 1996. Brief Facts: Baid Power Services Private Limited (Petitioner) entered into an agreement with the Bihar Medical Services and Infrastructure Corporation...

The Court Can't Re-Appreciate Evidence Or Re-interpret Contracts While Examining Patent Illegality : Calcutta High Court

The Calcutta High Court bench of Justice Sabyasachi Bhattacharyya has held that the court cannot re-appreciate evidence under the guise of patent illegality, as per the proviso to Section 34 (2-A) of the Arbitration and Conciliation Act, 1996. It remarked that the Court cannot be sitting in appeal over the Tribunal's decision and cannot re-interpret the contract differently from the Tribunal without evidence of patent illegality. Brief Facts: A gas purchase and sale agreement dated...

Allegations Of Fraudulent Signatures On Arbitration Agreements Must Be Decided By Arbitrator, Not Court Under Section 11: Calcutta High Court

The Calcutta High Court bench of Justice Sabyasachi Bhattacharyya has held that allegations of a party's signature on an arbitration agreement being obtained through fraud or misrepresentation are matters that can be decided by the arbitrator and can't be resolved by the court under Section 11 of the Arbitration and Conciliation Act, 1996. The bench further observed that the arbitral tribunal, similar to a civil court, has the authority to appoint experts when complex issues, such as...

Interim Measures Under Section 9 Of Arbitration Act Justified If Applicant's Rights Are Not Protected From Third Parties: Calcutta High Court

The Calcutta High Court bench of Justice Sabyasachi Bhattacharyya has held that granting interim measures under Section 9 of the Arbitration and Conciliation Act, 1996, is justified if the Applicant's rights are not protected from third parties, as this could render the arbitral reference irretrievably infructuous. Brief Facts: Bengal Shelter Housing Development Limited (Petitioner) entered into a development agreement with the Kolkata Municipal Corporation (KMC) to develop the...

No Prior Request Under Section 21 Needed For Section 11 Arbitration Applications: Calcutta High Court

The Calcutta High Court bench of Justice Sabyasachi Bhattacharyya has held that an application under Section 11(5) of the Arbitration and Conciliation Act, 1996, does not require a prior request for reference to arbitration under Section 21. The bench held that invalidity of an arbitral proceeding due to the absence of prior notice under Section 21 and a unilateral appointment of an arbitrator is distinct from a situation under Section 11(5), where prior notice is necessary only for...

Applicants Seeking Pandemic Relaxation For Limitation Under Section 34 Petition Cannot Simultaneously Claim IBC Moratorium Protection: Calcutta High Court

The Calcutta High Court bench of Justice Sabyasachi Bhattacharyya has held that if applicant of petition under Section 34 of the Arbitration Act seeks to benefit from the pandemic relaxation, it cannot simultaneously claim protection under the moratorium of Section 14 of the IBC. The bench held that to avail the pandemic relaxation, the applicant need to show that the pandemic initially prevented it from filing the application on time. The Supreme Court in In Re: Cognizance for...