When Parties Cannot Agree Upon Rules Governing Arbitration, Independent Clause Conferring Exclusive Jurisdiction Prevails: Calcutta High Court

The Calcutta High Court bench of Justice Shampa Sarkar, while hearing a section 11 petition, observed that Courts at Durgapur would have the exclusive jurisdiction over the arbitral proceeding vide Clause 46.2.4 of the GCC, as the parties could not agree upon the rules of arbitration governing the proceedings as provided under Clause 46.2.5. Factual Matrix: The Respondent No. 2 floated a tender and issued a notice inviting bids dated 24/08/2009, in which the Petitioner...

"Purchase Order Containing Arbitration Clause Will Supercede Tax Invoice Which Does Not Contain Arbitration Clause": Calcutta High Court

The Calcutta High Court Bench of Justice Shampa Sarkar while allowing an application for appointment for arbitrator observed that the terms and conditions of the purchase order including the arbitration agreement would prevail over and supersede the terms and conditions of the tax invoice which does not contain an arbitration clause. The Court held that the purchase order was the main contract which contained all the terms and conditions which the parties agreed to be bound by,...

Assessee Can Seek Refund Of Unutilised ITC In Personal Bank Account If Business Is Shut Down: Calcutta High Court

Calcutta High Court recently directed the proper officer under the GST Act to consider ordering refund of the unutilised ITC of an Assessee to his personal bank account, as his business was closed and its GST registration stood cancelled.The Petitioner was aggrieved by a direction of the proper officer, though allowing the refund sanction to the tune of Rs. 68,66,238/- but, directing the amount to be paid to the bank account of the business— Edelweiss Rural & Corporate Services Limited.The...

Eden Gardens Not A 'Public Street', Imposing Ad Tax Without Regulations Violates Rule Of Law: Calcutta High Court Quashes Demand Notice

The Calcutta High Court bench of Justices Arijit Banerjee and Justice Kausik Chanda has held that without framing Regulations or without the budget estimate prescribing the rates at which advertisement tax may be levied by Kolkata Municipal Corporation (KMC), computation and imposition of such tax would be arbitrary. It would have no rational basis. It would then be open to KMC to quantify such tax as per its sweet will, which cannot be countenanced under the rule of law.Brief Facts:Cricket...

Arbitrator Can't Be Impleaded In Application U/S 36(2) Of A&C Act Unless Prima Facie Case Of Fraud Or Corruption Is Established: Calcutta HC

The Calcutta High Court bench of Justice Aniruddha Roy has held that when an application under Section 36(2) seeking unconditional stay of the award on the ground of fraud or corruption is pending adjudication, the question of impleading the person who delivered the award does not arise at such a premature stage. Unless the court, upon examining the application, arrives at a prima facie finding that the award was indeed procured by fraud or corruption, impleadment is neither necessary nor...

Injunction Can't Be Granted In Absence Of Any Risk Of Assets Dissipating Or Pleadings Indicating Frustration Of Award: Calcutta High Court

The Calcutta High Court bench of Justice Shampa Sarkar has held that at this stage, the petitioner is adequately secured under the schedule to the deeds of hypothecation agreement. The respondent remains fully operational and continues its business activities. There is nothing in the pleadings to suggest that the respondent has attempted to remove or alienate its assets in a manner that would render any future award in favour of the petitioner unenforceable or illusory. Brief Facts: ...

Once Arbitration Commences After Failure Of Conciliation Under MSME Act, It Cannot Be Reinitiated By Halting Arbitration: Calcutta High Court

The Calcutta High Court bench of Justice Sabyasachi Bhattacharyya has held that once arbitral proceedings commenced under Section 18(3) under the MSME Act, the process could not be reversed to reinitiate pre-arbitral conciliation. The Council did not do so either. It was only at the petitioner's request that additional avenues for mutual settlement were explored alongside the arbitration. Upon the failure of these efforts, the Council proceeded to decide the matter on merits. Brief...

Arbitration Clause Mandates Reference, Question Of Appropriateness Can't Be Considered U/S 8 Of A&C Act: Calcutta High Court

The Calcutta High Court bench of Justices Arijit Banerjee and Rai Chattopadhyay has held that where an agreement between the parties contains a clear arbitration clause and disputes arise under that agreement, the Trial Court is bound to refer the parties to arbitration. The question of whether such reference is appropriate or not does not arise, as Section 8(1) of the Arbitration and Conciliation Act, 1996 is mandatory in nature. Brief Facts: This appeal challenges the judgment...

Professional Engagement With Law Firm Does Not Disqualify Advocate From Acting As Arbitrator: Calcutta High Court

The Calcutta High Court bench of Justice Shampa Sarkar has held that an Advocate who has accepted briefs from a law firm for unrelated clients cannot, by that fact alone, be deemed ineligible to act as an Arbitrator in disputes involving parties not personally known to or represented by him, even if the same law firm appears in the arbitration. Brief Facts: This application under Section 14(2) read with Section 15 of the Arbitration and Conciliation Act, 1996 seeks termination of the...

Original Claim Can Be Amended At Argument Stage In Arbitration Proceedings, Provisions Of CPC Do Not Apply Strictly: Calcutta High Court

The Calcutta High Court bench of Justice Shampa Dutt (Paul) has held that an amendment to the original claim may be permitted during arbitral proceedings, even at the stage of final arguments, particularly when costs have been imposed on the party seeking the amendment and accepted by the opposite party—provided the amendment does not materially alter the nature of the original claim or cause prejudice. It further held that while Civil Procedure Code, 1908 (CPC) provisions may be...

Court Is Not Appropriate Forum To Seek Interim Relief During Arbitration Proceedings: Calcutta High Court

The Calcutta High Court bench of Justice Shampa Sarkar has held that the appropriate forum for seeking interim relief after the constitution of the Arbitral Tribunal is the Tribunal itself under Section 17 of the Arbitration Act. Recourse to the court under Section 9 is permitted during the arbitration proceedings only if the remedy under Section 17 is found to be inefficacious. Brief Facts: This application has been filed under Section 9(1) of the Arbitration and Conciliation Act,...

Interim Measures U/S 9 Of Arbitration Can't Be Sought By MSME During Conciliation Proceedings: Calcutta High Court

The Calcutta High Court bench of Justice Shampa Sarkar has held that interim measures under Section 9 of the Arbitration Act can be sought by the MSME only after mandatory conciliation before the MSME Council fails and the dispute proceeds to arbitration—either conducted by the Council or referred to an arbitral institution. Only then do the provisions of the Arbitration Act apply. Consequently, seeking relief under the Arbitration Act during conciliation is clearly prohibited under...