ALTERNATIVE DISPUTE RESOLUTION
- PSA Sical Terminals Pvt. Ltd. v. The Board of Trustee of V.O. Chidambranar Port Trust Tuticorin & others
Arbitrator cannot rewrite contract for parties – 28 July 2021
The Division Bench of the Supreme Court has held that an arbitral award which is based on no evidence and/or in ignorance of evidence would come under the realm of patent illegality. The Court also held that an arbitrator cannot rewrite the contract for the parties.
In 2012, an Arbitral Tribunal passed an award in favor of PSA Sical Terminals Pvt. Ltd. directing amendment of the license agreement entered between the Parties to convert the royalty model into revenue sharing model.
A petition under Section 34 of the Arbitration and Conciliation Act, 1996 for setting aside an arbitral award was presented by the Trust and the Court held that: “In this scenario, the finding of the Arbitral Tribunal, that there was a law when the Agreement was entered into between the parties, which provided royalty as a pass-through and that the said law has been changed for the first time in 2003 and subsequently again changed in 2005, in our view, is a finding based on ‘no evidence‘. It was further held that ‘a unilateral addition or alteration of a contract has been foisted upon an unwilling party’ and that ‘a party to the Agreement cannot be made liable to perform something for which it has not entered into a contract and rewriting a contract for the parties would be breach of fundamental principles of justice.’
The Judgement can be accessed at: View PDF
- Amazon.com NV Investment Holdings LLC v. Future Retail Limited
No appeal lies under Section 37 of the Arbitration Act against an order of enforcement of an Emergency Arbitrator’s order made under Section 17(2) of the Act – 05 August 2021
The Supreme Court ruled in favour of Amazon in its dispute with Future Retail Limited (FRL) over the merger deal with Reliance group. The court held that Emergency Award passed by Singapore arbitrator stalling FRL-Reliance deal is enforceable in Indian law. The Court held that an award/order by an Emergency Arbitrator would be covered by Section 17 of the Arbitration and Conciliation Act and it can be enforced under Section 17(2). No appeal lies under Section 37 of the Arbitration Act against an Emergency Arbitrator’s order.
The judgment can be accessed at: View PDF
COMPETITION & UNFAIR TRADE PRACTICE
- Flipkart Internet Pvt. Ltd.v. Competition Commission of India
CCI enquiry against Amazon, Flipkart cannot be crushed at initial stage – 23 July 2021
The High Court of Karnataka upheld the CCI’s decision to conduct an investigation into whether Amazon and Flipkart had entered anti-competitive agreements. The enquiry cannot be crushed at the initial stage. The division bench described the approach of both e-commerce majors as ‘an attempt to ensure the enquiry does not attain finality’.
The Order can be accessed at: View PDF
CORPORATE
- M/S Orator Marketing Pvt. Ltd. v. M/S Samtex Desinz Pvt. Ltd.
Lender who advanced interest free loans corporate body is also Financial Creditor; can initiate CRIP – 26 July 2021
The Supreme Court observed that a lender who advanced interest free loans to finance a corporate body is a Financial Creditor and can initiate Corporate Resolution Process under Section 7 of IBC 2016. The Court observed there is no reason why such a term loan should be excluded from financial debt.
The Judgement can be accessed at: View PDF
TECHNOLOGY, MEDIA AND TELECOM
- Elangbam Ranjita v. The State of Manipur & Anr.
Manipur journalist held under NSA for Facebook post freed after HC order – 23 July 2021
Manipur journalist Kishorchandra Wangkhem aka Wangkhemcha Wangthoi, detained under NSA for Facebook posts about cow dung and urine curing Covid, was freed by state government following HC order. The High Court noted the Supreme Court order and said there was no distinction compared to similar cases.
The Order can be accessed at: View PDF
- Union of India v. Association of Unified Telecom Service Providers of India and Ors.
SC rejects telcos’ plea for recalculation of AGR dues – 23 July 2021
The Supreme Court dismissed telecom companies’ plea for correction of alleged AGR calculation errors. Companies had 10 years to clear AGR dues with 10% per year. The case returned after telcos disputed calculations.
The Order can be accessed at: View PDF
- Saahil Nalwaya v. State of Rajasthan
Rajasthan High Court dismisses plea seeking ban on online fantasy games with money stake – 22 July 2021
The Rajasthan High Court dismissed a petition seeking prohibition on online fantasy games involving stakes. The court held these games are of skill, protected under Article 19(1)(g).
The Order can be accessed at: View PDF
LITIGATION
- Larsen & Toubro Limited & Anr. v. Punjab National Bank & Anr.
Does Exception 3 to S. 28 of Contract Act deal with claim period within which beneficiary is entitled to lodge claim? Court discusses – 28 July 2021
Exception 3 to Section 28 of Contract Act addresses the creditor’s rights to enforce claims under bank guarantees after a specified event. The Court noted a 12-month period was erroneously applied by the bank.
The Judgement can be accessed at: View PDF
