Order Passed By The Supreme Court Of India (“SC”).

28 July 2021
 

1. SC holds that parties to arbitration can change the seat of arbitration by mutual agreement: In Inox Renewables Limited v. Jayesh Electricals Limited, the SC held that a change in the ‘venue’ of arbitration by mutual consent of the parties was tantamount to a change in the juridical seat of arbitration.
    

2. SC clarifies that two Indian parties can choose foreign seat of arbitration: In PASL Wind Solutions Private Limited v. GE Power Conversion India Private Limited, the SC clarified that two Indian parties can choose a foreign arbitral seat and that parties to such foreign seated arbitrations will be able to obtain interim relief from the Indian courts.
    

3. SC issues directions required to be followed by all courts executing decrees.
    

4. SC holds that an entity should have registered under the provisions of the MSME Development Act, 2006, as on the date of entering into the contract in order to avail benefits under it: In Silpi Industries v. Kerala State Road Transport Corporation, the SC clarified that the provisions of Indian Limitation Act, 1963, will apply to arbitration proceedings initiated under the MSME Development Act, 2006 (“MSMED Act”) and counter claims are maintainable by the opposite party in such arbitration proceedings. The SC further held that to avail benefits of the provisions of the MSMED Act, the micro and small enterprises should have registration under the MSMED Act as on the date of entering into the contract.
    

TO READ THE DETAILED DISPUTE KNOWLEDGE ALERT, PLEASE CLICK HERE.  (8 Pages PDF).

 

 

For further information, please contact:  

Souvik Ganguly, Partner, Acuity Law

al@acuitylaw.co.in