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Can an arbitral institution require parties’ membership as a pre-requisite for forming an arbitral tribunal under its rules when parties have agreed to arbitrate under those rules?
Overview: The Hon’ble Delhi High Court, in the case of Rani Construction v. Union of India (ARB.P. 1011/2023), ruled that arbitral institution membership cannot be mandated as a prerequisite for arbitration. Hon’ble Justice Sachin Datta’s bench clarified that when parties opt for arbitration under an institution, it doesn’t imply automatic membership acceptance. Facts:The dispute arose …
Hon’ble Supreme Court emphasizes Specific Reference for incorporating an arbitration clause in another contract
The recent ruling by the Hon’ble Supreme Court, in the case of NBCC (India ) Ltd. vs. Zillion Infra Projects Pvt. Ltd., reiterated that arbitration cannot be invoked based on an arbitration clause in another contract unless specifically referenced in the main contract. The court reversed the High Court’s decision, stating that parties must settle …
Supreme Court: Arbitral Tribunal Appointment Rejected for Time-Barred S.11(6) Petition or Ex-Facie Time-Barred Claim
In a recent case of M/S Arif Azim Co. Ltd. vs M/S Aptech Ltd, Arbitration Petition No. 29 of 2023, the Supreme Court held that the Limitation Act, 1963, applies to proceedings for appointing an arbitrator under Section 11(6) of the Arbitration and Conciliation Act, 1996 (“A&C Act”). This ruling signifies that if claims exceed the time …
