Thursday, February 12, 2015

Arbitrator cannot decide upon issues as to an excepted dispute not arbitrable in a contract of arbitration

Arbitration : Arbitrator cannot decide upon issues as to an excepted dispute not arbitrable in a contract of arbitration
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[2015] 53 taxmann.com 399 (SC)
SUPREME COURT OF INDIA
Harsha Constructions
v.
Union of India
ANIL R. DAVE AND VIKRAMAJIT SEN, JJ.
CA NO. 534 OF 2007†
SEPTEMBER  5, 2014
Section 7 read with section 34, of the Arbitration And Conciliation Act, 1996 - Arbitration agreement - Whether arbitration arises from a contract and unless there is a specific written contract, a contract with regard to arbitration cannot be presumed - Held, yes - Whether section 7(3) clearly specifies that contract with regard to arbitration must be in writing - Held, yes - Whether where law specifically makes a provision with regard to formation of a contract in a particular manner, there cannot be any presumption with regard to a contract if contract is not entered into by mode prescribed under Act - Held, yes - Whether where a clause in a contract specifically excluded some disputes from arbitration, arbitrator was not empowered to arbitrate upon these excepted disputes - Held, yes [Paras 20, 21 & 22]

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