Topic
A pending civil suit on the same subject matter bars parallel arbitration under Section 11 of the Arbitration and Conciliation Act 1996. It reinforces election of remedies barring duplicate forum litigation in partnership disputes.
The Supreme Court held that arbitration clauses in a Joint Venture Agreement and Memorandum of Understanding remain operative despite a separate Licence Agreement, affirming the doctrine of independent arbitration agreements. It clarified Section 11(6-A) of the Arbitration and Conciliation Act, 1996 and appointed the former Chief Justice of the Bombay High Court as the sole arbitrator, impacting parties to intertwined commercial contracts.
The Delhi High Court appointed a sole arbitrator under Section 11(6) of the Arbitration and Conciliation Act, 1996, even though the respondent did not appear, holding that the court’s inquiry is confined to whether a valid arbitration agreement prima facie exists. This clarifies that a party’s absence does not bar appointment and limits judicial scrutiny at this stage, affecting contractors and respondents in arbitration disputes.
Delhi HC appoints sole arbitrator under Section 11 of Arbitration Act, 1996; inquiry limited to prima facie arbitration agreement; claim Rs.85,35,069/-.
The Delhi HC held that parties' consensus and an award lacking reasoning justify remand under Section 34(4) of the Arbitration and Conciliation Act, 1996. The ruling clarifies that mutual consent plus deficient awards triggers remission, affecting arbitrators and contracting parties in future disputes.