Alert – Section 9 of arbitration and conciliation act, 1996 cannot be invoked in a foreign seated arbitration after constitution of arbitral tribunal July 21, 2020
Published in: Alerts
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We are pleased to share with you recent judgments passed by Hon’ble Delhi High Court on the maintainability of application under Section 9 of Arbitration and Conciliation Act, 1996 for seeking interim reliefs from Courts.
In the case of Ashwani Minda And M/S Jay Ushin Limited v. M/S U-Shin Limited And M/S Minebea Mitsumi Inc., decided on 07.07.2020, the Hon’ble Delhi High Court has held that Section 9(3), although expressly relatable to India-seated arbitrations, the principle thereof, is equally applicable in cases of foreign-seated arbitrations and therefore, an application under Section 9 is maintainable in connection with a foreign-seated arbitration. However, no such application will lie, in the event the arbitral tribunal has been constituted, unless the applicant demonstrates that it does not have an efficacious remedy before the tribunal.
In the case of Hero Wind Energy Private Ltd. v. Inox Renewables Limited & Anr, decided on 07.07.2020, the Hon’ble Delhi High Court has held that an arbitral tribunal constituted for adjudication of certain disputes arisen earlier is not competent to exercise jurisdiction under Section 17 to grant interim measures with respect to additional disputes arising out of a subsequent cause of action, even though pertaining to the same agreement. In such a scenario, the party can invoke Section 9 for seeking interim reliefs.
A detailed note on the judgments is attached herewith for your reference. We trust that you will find the attached Alert useful. Please feel free to write to us, in case of you require further clarification or information with regard to the issues covered.
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