Skip to main content

SC resolves arbitration dilemma

The Supreme Court ruled last week that if an arbitration appeal can be filed in a district court or a high court, the choice under the Arbitration and Conciliation Act has to be exercised in favour of the high court. Usually, the court where the appeal was filed first will have the jurisdiction, according to the Act. But this suit raised a peculiar problem. In this case, chief engineer vs Atlanta Ltd, both the parties were dissatisfied with the arbitral award. The chief engineer of the Maharashtra public works department, who was asked to pay Rs 58 crore plus interest at the rate of 20 per cent by the arbitrator, moved the appeal before the Thane district court because a bypass was to be built in that district. Builder Atlanta, equally dissatisfied with the award, moved the Bombay High Court on the same day, creating a jurisdictional conundrum as both the appeals were filed on the same day, in different courts. Two courts cannot deal with the same award. This situation has not been contemplated in the Act. Atlanta moved the high court for transferring the Thane appeal to the high court. It ruled in favour of Atlanta. The state appealed to the Supreme Court. It upheld the high court view and ruled in favour of the jurisdiction of the high court interpreting Section 2 (1)(e) of the Act.

Article referred: http://www.business-standard.com/article/opinion/sc-resolves-arbitration-dilemma-114011900826_1.html

Comments

Most viewed this month

Valuation Report of Jewellery once made is effective for Four Assessment Years

The division Bench of the Delhi High Court in Pr.Commissioner of Wealth Tax vs. Raghu Hari Dalmia held that a valuation report made by a registered valuer once adopted shall be in effect for four assessment years unless an event has occurred whereby the value is increased or decreased. The High Court made it clear that the event of “search” under Section 132 of the Income Tax Act, 1961 cannot compel the assessee to undertake a fresh valuation.

The recovery of vehicles by the financier not an offence - SC

Special Leave Petition (Crl.) No. 8907  of 2009 Anup Sarmah (Petitioner) Vs Bhola Nath Sharma & Ors.(Respondents) The petitioner submitted that  respondents-financer had forcibly taken away the vehicle financed by them and  illegally deprived the petitioner from its lawful possession  and  thus,  committed  a crime. The complaint filed by the petitioner had been  entertained  by  the Judicial Magistrate (Ist Class), Gauhati (Assam) in Complaint Case  No.  608 of 2009, even directing the interim custody of the vehicle (Maruti  Zen)  be given to the petitioner vide order dated  17.3.2009.  The respondent on approaching the Guwahati High  Court against this order, the hon'ble court squashed the criminal  proceedings  pending   before  the  learned Magistrate. After hearing both sides, the Hon'ble Supreme Court decided on 30th...

Mere Agreement To Sell The Leased Property To Tenant Would Not Terminate Landlord-Tenant Relationship

In CIVIL APPEAL Nos. 1237­1238 OF 2019, Dr. H.K. Sharma vs Shri Ram Lal, the tenant had objected against the eviction suit filed by the landlord, claiming that the landlord-tenant relationship between them had ceased to exist by virtue of an agreement for sale entered between them and that he has already paid some money in advance based on the agreement. The tenant contented as the landlord-tenant relationship did not exist, the landlord cannot evict him. The matter went through various forums and finally landed before the Supreme Court in appeal. The Supreme Court referring to the judgment in Shah Mathuradas Maganlal & Co. vs. Nagappa Shankarappa Malage & Ors., held that in the instant case the lease agreement included no clauses on the fate of the tenancy. A fortiori, the parties did not intend to surrender the tenancy rights despite entering into an agreement of sale of the tenanted property. In other words, if the parties really intended to surrender their tenancy ...