Top Supreme Court Arbitration Law Judgment of April 2025 | LegalWiki
Supreme Court Constitution Bench Clarifies: Courts Can Modify Arbitral Awards Only in Limited Cases
In a landmark decision, a 5-judge Constitution Bench of the Supreme Court held that courts can modify arbitral awards under Sections 34 and 37 of the Arbitration Act, but only in limited cases such as clerical errors, post-award interest, or severable parts using powers under Article 142. Justice KV Viswanathan dissented, warning that such modifications may undermine arbitration integrity. Read Details
Delhi High Court Upholds Arbitral Award in BSNL-Vihaan Networks Dispute
The Delhi High Court upheld an arbitral award of ₹43.52 crore to Vihaan Networks Ltd (VNL), dismissing BSNL’s appeal. The dispute arose after BSNL withdrew an Advance Purchase Order despite partial work completed by VNL. The tribunal awarded compensation on a quantum meruit basis, which was upheld by a Single Judge. The Division Bench affirmed that courts cannot interfere unless the award is legally flawed, citing M.C.D. v. Ravi Kumar. Read Details
Delhi High Court Bars Gensol, BluSmart from Alienating EVs leased from Orix
Case Name: Orix Corporation v. Gensol Engineering Ltd. & BluSmart Mobility Pvt. Ltd.
The Delhi High Court has restrained Gensol Engineering Ltd. and BluSmart Mobility from transferring or creating third-party rights over 175 electric vehicles leased from Japan-based Orix Corporation. The court issued the interim order in a petition filed by Orix under Section 9 of the Arbitration and Conciliation Act, 1996, alleging lease payment defaults amounting to ₹4 crore and breaches of contract. Read Details
Delhi PWD Removes Arbitration Clause From Future Contracts, Opts for Litigation
The Delhi PWD has removed the arbitration clause from all future contracts, requiring disputes to be resolved solely by Delhi courts. This change, via an April 21 office order, aligns with the Finance Ministry’s 2024 guidelines discouraging arbitration in public contracts. However, legal experts have criticized the move, warning it weakens India’s arbitration framework and may burden courts with increased procurement-related cases. Read Details
Ex-Fortis Promoter Shivinder Mohan Singh Files for Personal Insolvency Before NCLT
Shivinder Mohan Singh, former promoter of Fortis and Religare, has filed for personal insolvency before NCLT Delhi under Section 94 of the IBC, citing liabilities exceeding his assets amid ongoing litigation, including a ₹3,500 crore arbitral award in favor of Daiichi Sankyo over the 2008 Ranbaxy deal. The next hearing is on May 20. Read Details
Writ Petition Maintainable When Section 9 of Arbitration Act Order Neither Grants Nor Refuses Relief
Case Name: Flemingo (DFS) Pvt. Ltd. v. AAI
The Kerala High Court held that a writ petition under Articles 226/227 is maintainable against a Commercial Court’s order under Section 9 of the Arbitration Act when the order neither grants nor refuses relief, making it non-appealable under Section 37. In this case, the Commercial Court merely "closed" the petition without adjudicating on the interim reliefs sought. The court observed that such closure, based on the assumption that arbitration proceedings had commenced, did not amount to a decision under Section 9. Read Details
Arbitrable Disputes Under Section 31 of the Specific Relief Act Are Not Binding On Third Parties : Calcutta HC
Case Name: Jagat Singh Manot V The Municipal Commissioner, Kolkata & Ors
The Calcutta High Court ruled that disputes over the cancellation of written instruments under Section 31 of the Specific Relief Act, 1963, are arbitrable, but awards are binding only on parties to the arbitration. It upheld Kolkata Municipal Corporation’s refusal to act on an arbitral award cancelling a Deed of Exchange, as the Corporation was not a party to the arbitration. Read Details
Arbitrator Cannot Be Appointed Unless the Arbitration Clause Is Invoked With Proper Notice U/S 21 of A&C Act
Case Name: MS Cipher Oncology Pvt Ltd vs M S Unimed Health Care Pvt Ltd
The Telangana High Court has ruled that courts cannot appoint an arbitrator under Section 11(6) of the Arbitration and Conciliation Act, 1996, unless the arbitration clause has been properly invoked through a valid notice under Section 21. In this case, the applicant had sent a notice demanding outstanding payment but did not propose an arbitrator or formally invoke the arbitration clause under Section 21 of the Arbitration Act. Read Details
Singapore Court Upholds Setting Aside of Arbitral Award Chaired by Ex-CJI Dipak Misra Over Plagiarism Concern
Case Name: DJP and Others v DJO
The Singapore Court of Appeal set aside an arbitral award in a railway contract dispute after finding that 47% of it was plagiarised from unrelated Indian arbitration proceedings. The tribunal, chaired by former CJI Dipak Misra, failed to independently assess the case, breaching natural justice and creating an appearance of bias. To preserve the integrity of arbitration, the award was nullified despite no finding of bad faith. Read Details
Calcutta High Court: MSME Council Can’t Reject Claims Without Hearing Both Parties After Failed Mediation
Case Name: UMC Technologies P Ltd Vs Assistant Director of Postal Services
The Calcutta High Court held that once mediation under Section 18 of the MSME Act, 2006 fails, the MSME Facilitation Council must either adjudicate the dispute or refer it to arbitration. It cannot dismiss claims without valid reasons or without giving both parties an opportunity to present evidence.Read Details
Dispute Clause Not a Valid Arbitration Agreement Due to Lack of Impartiality: Calcutta HC
Case Name: Balasore Alloys Limited vs. Flynt Mining LLP
The Calcutta High Court dismissed a petition under Section 11 of the Arbitration and Conciliation Act, 1996, holding that Clause 16 of the agreement did not constitute a valid arbitration clause. The clause only provided for in-house dispute resolution between the parties' officials, lacking the intention and neutrality essential for arbitration. As a result, the Court ruled it had no jurisdiction to appoint an arbitrator. Read Details
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