Key Points: – *High Court’s Limitation*: A High Court cannot nullify prior arbitral proceedings while appointing a substitute arbitrator.
[10/02, 19:28] Meta AI: The Supreme Court has ruled that a High Court cannot declare prior arbitral proceedings a nullity while appointing a substitute arbitrator under Section 15(2) of the Arbitration and Conciliation Act, 1996. This decision was made in the case of Ankhim Holdings Pvt. Ltd. & Anr. v. Zaveri Construction Pvt. Ltd., where the Bombay High Court had declared arbitral proceedings conducted between March 17, 2022, and August 25, 2022, as void due to a moratorium imposed under Section 14 of the Insolvency and Bankruptcy Code, 2016.
The Supreme Court emphasized that Section 15 of the Arbitration Act is a self-contained provision dealing with termination and substitution of an arbitrator, and it does not confer power on the High Court to invalidate past arbitral orders. The Court restored the validity of the arbitral proceedings and declared transactions carried out pursuant to interim arbitral orders, including those affecting third-party rights, as lawful and valid. ¹ ² ³
Would you like to know more about the implications of this ruling on arbitration proceedings in India?
[10/02, 19:28] Sekarreporter: Key points
[10/02, 19:28] Meta AI: The Supreme Court has ruled that a High Court cannot declare prior arbitral proceedings a nullity while appointing a substitute arbitrator under Section 15(2) of the Arbitration and Conciliation Act, 1996. This decision was made in the case of Ankhim Holdings Pvt. Ltd. & Anr. v. Zaveri Construction Pvt. Ltd.
Key Points:
– *High Court’s Limitation*: A High Court cannot nullify prior arbitral proceedings while appointing a substitute arbitrator.
– *Section 15(2)*: Deals with termination and substitution of an arbitrator, preserving continuity of proceedings.
– *Moratorium under IBC*: Doesn’t empower High Court to invalidate prior arbitral actions.
– *Prior Proceedings*: Remain valid unless parties agree otherwise.
The Supreme Court restored the validity of arbitral proceedings conducted between March 17, 2022, and August 25, 2022, emphasizing minimal judicial intervention in arbitration. ¹ ² ³
Would you like to know more about the implications of this ruling on arbitration proceedings in India?
