⁠Review of few of the latest judgments

1. Hon’ble Supreme Court of India | Determined that arbitration must be mandatory if an agreement contains an arbitration clause, rather than being regarded as optional.

Case: Tarun Dhameja vs. Sunil Dhameja & Anr., Civil Appeal No. 14005 of 2024 (arising out of SLP(C) No. 16377/2024), decided on 06.12.2024

Hon’ble Supreme Court of India has determined that arbitration cannot be categorized as “optional,” emphasizing that parties must jointly agree to invoke the arbitration clause. In setting aside the ruling of the Hon’ble Madhya Pradesh High Court, the Court clarified that the notion of “optional arbitration” is not valid when mutual agreement is required to activate the arbitration clause. The Hon’ble Court further asserted that, in practice, arbitration should not be regarded as “optional.”


2. Hon’ble Delhi High Court | Rectification of Errors in Court Orders During Arbitration Proceedings under Sections 152 and 153 of the Civil Procedure Code (CPC)

Case: ADO India Pvt. Ltd. Vs. ATS Housing Private Limited, I.A. 1612/2024 in ARB. P. 1432/2022, pronounced on 9th December, 2024

Hon’ble Delhi High Court has concluded that the correction requested by the applicant concerning the Work Order number constitutes a clerical error. Additionally, rectifying this error will not impact the intent expressed in the pleadings of the aforementioned petition or in the order dated March 24, 2024. Furthermore, this rectification will not result in any prejudice to the respondent.


3. Hon’ble Delhi High Court | Section 2(1)(f) is non-derogable; its applicability cannot be excluded even by the mutual consent of the parties

Case: Suresh Shah versus Tata Consultancy Services Limited, O.M.P. 5/2017, I.A. 9676/2019, decided on 02.12.2024

Hon’ble Delhi High Court, presided over by Hon’ble Ms. Justice Neena Bansal Krishna, has determined that Section 2(1)(f) of the Arbitration Act, which defines International Commercial Arbitration, constitutes a non-derogable provision. Consequently, its applicability cannot be circumvented, even through mutual consent of the involved parties.


4. Hon’ble Delhi High Court | Has appointed a sole arbitrator to address a gas supply dispute and has invalidated the prior arbitration clause, taking into consideration the implications of the CORE judgment

Case: Indraprastha Gas Limited Vs. M/S Chintamani Food And Snacks, ARB.P. 355/2024, decided on 29.11.2024

Hon’ble Delhi High Court has determined that the arbitration agreement stipulating the appointment of a sole arbitrator from a panel of three individuals selected by the petitioner is no longer valid. This conclusion is derived from the Supreme Court’s judgement in the case of Central Organisation for Railway Electrification vs. ECI SPIC SMO MCML (JV), A Joint Venture Company. Consequently, Hon’ble Court has appointed a sole arbitrator to adjudicate the disputes between the parties, following a determination of the existence of the arbitration agreement.

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