Landmark Supreme Court of India rulings, explained in clear, plain language.
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Can a residuary no-interest clause in a contract bar arbitral pre-award interest?
MS Sharma Enterprises vs National Building Construction Corporation
The Supreme Court dismissed the appeal, holding that the residuary phrase 'or otherwise' in Clause 26 of the contract barred the arbitrator from awarding pre-reference and pendente lite interest under Section 31(7)(a) of the Arbitration and Conciliation Act, 1996.
Can non-signatory partners be joined in arbitration if their rights are substantially affected?
Hemant D. Shah HUF & Anr. vs Chittaranjan D. Shah HUF & Ors.
The Supreme Court held that 3rd and 4th respondents are veritable parties to arbitration despite not being signatories to the partnership deed containing the arbitration clause, as the dispute substantially affects their rights.
Can SRA sue Operational Creditor on same contract after CIRP extinguished OC's claim?
Modern Asset vs KNK Construction Private Limited
The Supreme Court upheld the arbitration appointment for the SRA's claim but directed that the Operational Creditor may raise a counterclaim solely for set-off, without any positive recovery, to ensure equity within the clean slate framework of the IBC.
Does Clause 54 of the GCC bar an arbitrator from awarding pre-reference interest?
North Eastern Electric Power Corporation Limited (NEEPCO) vs Astra Construction Private Limited
The Supreme Court held that Clause 54 of the GCC is a complete bar on pre-reference interest and set aside the High Court's order restoring such interest.
Can a personal guarantor be dragged into arbitration if their guarantee lacks an arbitration clause?
National Skill Development Corporation v. Surya Wires Private Limited & Ors.
The Supreme Court ruled that a personal guarantor is bound by the main loan agreement's arbitration clause if both agreements form a single transaction.
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