1.

Section 89 CPC
2. Lok Adalat and Permanent Lok Adalat, Challenging procedures (or
remedy) to challenge an award (cases to be sent by sir)
3. Section 12A commercial court act means pre-litigation mediation
along with rules and regulation.
4. Mediation under commercial court act, mediation act, consumer
protection act (rules and regulations also for consumer protection act
in detail)
5. Arbitration agreement, group of companies, arbitrability (of fraud),
interim relief.

Alternate Dispute Resolution

ARBITRATION
An arbitration agreement is an agreement to submit present or future
disputes (whether they are contractual or not). An arbitration agreement is
therefore a contractual undertaking by two or more parties to resolve
disputes by the process of arbitration, even if the disputes themselves are
not based on contractual obligations.

FORMS OF ARBITRATION AGREEMENTS: SECTION 7(2)

Neither the 1996 Arbitration Act nor the corresponding jurisprudence
prescribes a form for a valid agreement. The Act recognizes the three types
of arrangements a valid arbitration agreement can be framed in:
(1) Arbitration clause in a contract – Section 7(2).
(2) Separate arbitration agreement – Section 7(2); and
(3) Arbitration agreement by incorporation – Section 7(5).
ELEMENTS OF AN ARBITRATION AGREEMENT
A plain reading of Section 7 of the 1996 Arbitration Act
establishes four essential elements of a valid and binding arbitration
agreement:
(1)there must be an agreement between the parties to submit present or
future disputes to arbitration;
(2)such an agreement must be in writing;
(3)it must be contained as a clause in a contract or is a separate agreement;
and
(4)the dispute sought to be referred to arbitration must concern a defined
legal relationship, whether contractual or not.

i. Clear Intention to submit the issues to arbitration

The Supreme Court in Jagdish Chander v. Ramesh Chander (2007) 5

SCC 719. set out key principles to be applied when reading the terms of an
agreement to deduce parties’ intent:

The Court held that a clause in a contract can be construed as an

'arbitration agreement' only if an agreement to refer disputes or differences
to arbitration is expressly or impliedly spelt out from the clause. We may at
this juncture set out the well settled principles in regard to what constitutes
an arbitration agreement. While there is no specific form of an arbitration
agreement, the words used should disclose a determination and obligation
to go to arbitration and not merely contemplate the possibility of going for
arbitration. Where there is merely a possibility of the parties agreeing to
arbitration in future, as contrasted from an obligation to refer disputes to
arbitration, there is no valid and binding arbitration agreement.
The Calcutta High Court in Slipco Constructions added to these principles
by holding that parties could not disclaim the existence of an arbitration
agreement when a clause demonstrates an intention to arbitrate, is not
denied by the parties in their correspondence but has instead been
previously admitted by the disclaiming party in an affidavit:

BLUE STAR LIMITED v. FORUM PROJECTS HOLDINGS PRIVATE

LIMITED
The Court in Jagdish Chander examined thecharacteristics of arbitration cla
uses and concluded that mere possibility of future agreement to arbitrate do
es notestablish a valid arbitration agreement.
Furthermore, if a clause contains language explicitly excluding essential att
ributes of an arbitration agreement ordetracts from its binding nature, it ca
nnot be deemed an arbitration agreement. Such clauses may merely express
adesire to explore arbitration without mandating it as a resolution method.
The Court also noted that while clauses may reference "Arbitration Proceedi
ngs," the presence of such terms alonedoes not constitute a binding arbitrat
ion agreement. A clear intention and mutual understanding from both partie
sto submit disputes to arbitration must be evident.

Mahanadi Coalfields Ltd. And Another (S) v. Ivrcl Amr Joint Venture
(S). 2022
The Court analyzed the language of Clause 15 and found that it did not
meet the requirements of an arbitration agreement under the Act. The
clause did not refer to arbitration as the mode of settlement and did not
provide for the reference of disputes to arbitration. Additionally, a
communication from CIL in 2017 expressing a desire for arbitration in
dispute settlement did not change the nature of Clause 15. Therefore, the
High Court's decision to appoint an arbitrator was deemed invalid.
Ingram Micro India (P) Ltd. v. Mohit Raghuram Hegde
It is now a settled principle of law that a mere allegation of fraud would not
make the dispute non arbitrable. The Supreme Court has held that only
when either of the two tests as defined by it, are satisfied it can be said that
serious allegations of fraud have arisen. The Supreme Court also held that
merely because criminal proceedings are initiated would not make the civil
dispute non arbitrable if it involves questions of fraud, misrepresentation
etc. which can be appropriately raised as the subject matter of proceedings
would fall under Section 17 of the Contract Act. In my opinion, such stand
taken by the respondent clearly indicates that the respondent is not in a
position to out-rightly displace the case of the applicant that there exists no
arbitration agreement.

Pure Diets India Ltd. v. Lokmangal Agro Industries Ltd.

In a case wherein, the petitioner, Pure Diets India Ltd., had filed a petition
under Section 11(6) of the Arbitration and Conciliation Act, 1996 (‘Act’) for
appointment of a sole Arbitrator in respect of a Supply Agreement
(‘Agreement’), Jyoti Singh, J.*, held that mere use of the word ‘arbitration’
or ‘arbitrator’ was not enough to construe an agreement to be an
arbitration agreement and dismissed the petition granting liberty to the
petitioner to take recourse to other remedies available in law for redressal
of its grievances.

Anupam Mittal v. West Bridge

https://siarb.org.sg/resources/newsletters/129-case-digests/583-case-digest-
anupam-mittal-v-westbridge-2023-sgca-1

Kabab-Ji SAL (Lebanon) (Appellant) v Kout Food Group

(Kuwait) (Respondent)

Important things:
 Such clauses merely indicate a desire or hope to have the disputes
settled by arbitration, or a tentative arrangement to explore
arbitration as a mode of settlement if and when a dispute arises. Such
clauses require the parties to arrive at a further agreement to go to
arbitration, as and when the disputes arise.

 Where the contract provides that the standard form of terms and
conditions of an independent trade or professional institution (e.g.,
the standard terms and conditions of a Trade Association or the
Architects Association) will apply to the contract, such standard form
terms, including any provision for arbitration in such standard terms
and conditions, shall be deemed to be incorporated by reference.
Sometimes the contract may also say that the parties are familiar with
those terms and conditions or that the parties have read and
understood the said terms and conditions.

 The doctrine of kompetenz-kompetenz indicates that an arbitral

tribunal is empowered and has the competence to rule on its own
jurisdiction, including determining all jurisdictional issues, and the
existence or validity of an arbitration agreement. The underlying
object of this doctrine is to minimize judicial intervention in order to
ensure that the arbitral process is not thwarted at the very threshold,
merely because a preliminary objection is raised by one of the parties.

 Article 16(1) UNCITRAL Model Law expressly grants arbitrators the

power to rule on their jurisdiction, including any objections with
respect to the existence or validity of the arbitration agreement.
VIDYA DROLIA V. DURGA TRADING CORPORATION

ARBITRATION AGREEMENT BY INCORPORATION: SECTION 7(5)

The Supreme Court has summarised the scope and rationale of Section 7(5)
in M.R. Engineers as follows: M.R. Engineers & Contractor (P) Ltd v.
Som Dutt Builders Ltd. (2009) 7 SCC 696. See also, Duro Felguera,
S. A. v. Gangavaram Port Limited (2017) 9 SCC 729.

(i) An arbitration clause in another document is deemed incorporated into a

contract by reference if the following conditions are fulfilled:
(a) the contract should contain a clear reference to the documents
containing the arbitration clause.
(b) this reference should clearly indicate an intention to incorporate
the arbitration clause into the contract; and
(c) the arbitration clause should be appropriate; in that it is capable of
application in respect of disputes under the contract and should not
be repugnant to any term of the contract.

(ii) When the parties enter into a contract which makes a general reference
to another contract, such general reference would not have the effect of
incorporating the arbitration clause from the referred document into the
contract between the parties. The arbitration clause from one contract can
be incorporated into another contract (where such reference is made), only
by a specific reference to the arbitration clause.

(iii) If the contracting parties decide that a contract is to be executed

according to the terms of another contract, said reference only incorporates
the provisions relating to execution alone. An arbitration agreement
contained in the other contract is not automatically incorporated. This goes
in line with the principle of separability.

(iv) Where the contract provides that the standard form of terms and
conditions of an independent trade or professional institution (e.g., the
standard terms and conditions of a Trade Association or the Architects
Association) will apply to the contract, such standard form terms, including
any provision for arbitration in such standard terms and conditions, shall be
deemed to be incorporated by reference. Sometimes the contract may also
say that the parties are familiar with those terms and conditions or that the
parties have read and understood the said terms and conditions.

(v) Where the contract between the parties stipulates that the conditions of
contract of one of the parties shall form a part of their contract (as e.g. the
General Conditions of Contract of the Government where the Government
is a party), the arbitration clause forming part of such general conditions of
contract will apply to the contract between the parties.

COMPETENCE-COMPETENCE PRINCIPLE
Article 16 of the Model Law provides that the arbitral tribunal may rule on
its own jurisdiction, either as a preliminary question or in an award on the
merits.
It is only in the year 2002 the Supreme Court truly realized the importance
of the doctrine of competence/competence and the spirit of the doctrine of
competence/competence was duly acknowledged by the court in Konkan
Railway Corporation Ltd v. Rani Construction Pvt Ltd case whereby a
Constitutional Bench of the Supreme Court observed:
Section 16 provides for this. It states that the arbitral tribunal may
rule on its own jurisdiction. That the arbitral tribunal may rule “on
 any objections with respect to the existence or validity of the
arbitration agreement” shows that the arbitral tribunal's authority
under section 16 is not confined to the width of its jurisdiction, as was
submitted by learned counsel for the appellants, but goes to the very
root of jurisdiction. There would, therefore, be no impediment in
contending before the arbitral tribunal that it had been wrongly
constituted by reason of the fact that the Chief Justice or his
designate had nominated an arbitrator although the period of thirty
days has not expired and that, therefore, it had no jurisdiction.

Subsequently, relying on Konkan Railway Corporation Ltd. and Anr v. Rani

Construction Pvt. Ltd decision, the Supreme Court in Food Corporation
of India v. Indian Council of Arbitration and ors. etc. adverting to
section 16 of the Act, the Constitutional Bench held that questions relating
to the improper constitution of arbitral tribunal or its want of jurisdiction or
objections with respect to the existence or validity of the arbitration
agreement are matters which should be canvassed before the arbitral
tribunal itself which has been specifically empowered to rule on such issues
and on its own jurisdiction, as well.

The Supreme Court of India in Patel Engineering case whereby decisions

were given by a seven judge Bench of the Supreme Court, has practically
overruled the Konkan Railway Corporation Ltd v. Rani Construction Pvt Ltd
decision and the following observations made by the Judges:
But where the jurisdictional issues are decided under these Sections,
before a reference is made, Section 16 cannot be held to empower the
arbitral tribunal to ignore the decision given by the judicial authority
or the Chief Justice before the reference to it was made. The
competence to decide does not enable the arbitral tribunal to get over
the finality conferred on an order passed prior to its entering upon
 the reference by the very statute that creates it. That is the position
arising out of Section 11(7) of the Act read with Section 16 thereof.

THE GROUP OF COMPANIES

Dow Chemical v. Isover-Saint-Gobain

Sukanya Holdings Pvt. Ltd. v. Jayesh H. Pandya (2003) 5 SCC 351
Chloro Controls (I) Pvt. Ltd. v. Severn Trent Water Purification (2013) 1 SCC
641
Cheran Properties Ltd. v. Kasuri and Sons Ltd., (2018) 16 SCC 413.
(24 April, 2018)
Ameet Lalchand Shah and Ors. v. Rishabh Enterprises (2018) 15 SCC 678.
(3 May, 2018)
Reckitt Benckiser v. Reynders Label Printing, (decided on 1 July 2019
(“Reynders Label”),
MTNL v. Canara Bank, 2019 SCC OnLine SC 995. decided on 8 August 2019
(“MTNL”)
Oil and Natural Gas Corporation Ltd v. Discovery Enterprises Pvt. Ltd
(2022) 8 SCC 42 decided on 27 April, 2022
Cox and kings limited v. SAP India private limited ( decided on May
06,2022.

Cox and kings limited v. SAP India private limited ( decided on

December 06, 2023)

SECTION 89 OF CPC

Afcon case important

SECTION 12A OF THE COMMERCIAL COURT ACT

A. Constitution of Commercial Courts (Section 3)

Section 2(1)(b) Commercial Court” means the Commercial Court
constituted under sub-section (1) of section 3. Section 3 says (1) The State
Government, may after consultation with the concerned High Court, by
notification, constitute such number of Commercial Courts at District level,
as it may deem necessary for the purpose of exercising the jurisdiction and
powers conferred on those Courts under this Act:

Provided that with respect to the High Courts having ordinary

original civil jurisdiction, the State Government may, after
consultation with the concerned High Court, by notification,
constitute Commercial Courts at the District Judge level:

Provided further that with respect to a territory over which the High
Courts have ordinary original civil jurisdiction, the State Government
may, by notification, specify such pecuniary value which shall not be
less than three lakh rupees and not more than the pecuniary
jurisdiction exercisable by the District Courts, as it may consider
necessary.
Section 2(1)(c) defines the commercial dispute to mean
“commercial dispute” means a dispute arising out of––
(i) ordinary transactions of merchants, bankers, financiers and traders
such as those relating to
mercantile documents, including enforcement and interpretation of
such documents;
(ii) export or import of merchandise or services;
(iii) issues relating to admiralty and maritime law;
12A. Pre-Institution Mediation and Settlement— (1) A suit, which does
not contemplate any urgent interim relief under this Act, shall not be
instituted unless the plaintiff exhausts the remedy of pre-institution
mediation in accordance with such manner and procedure as may be
prescribed by rules made by the Central Government.

(2) The Central Government may, by notification, authorise the Authorities

constituted under the Legal Services Authorities Act, 1987 (39 of 1987), for
the purposes of pre-institution mediation.

(3) Notwithstanding anything in the Legal Services Authorities Act, 1987,

the Authority authorized by the Central Government under sub-section (2)
shall complete the process of mediation within a period of three months
from the date of application made by the plaintiff under sub-section (1):

Provided that the period of mediation may be extended for a further

period of two months with the
consent of the parties:
Provided further that, the period during which the parties remained
occupied with the pre-institution
mediation, such period shall not be computed for the purpose of
limitation under the Limitation Act, 1963 (36 of 1963).

(4) If the parties to the commercial dispute arrive at a settlement, the same
shall be reduced into writing and shall be signed by the parties to the
dispute and the mediator.

(5) The settlement arrived at under this section shall have the same status
and effect as if it is an arbitral award on agreed terms under sub-section (4)
of section 30 of the Arbitration and Conciliation Act, 1996 (26 of 1996).]
https://charteredonline.in/decoding-section-12-a-of-the-commercial-courts-
act-2015/

MEDIATION ACT, 2023

https://www.mondaq.com/india/civil-law/1432474/overview-on-the-
provisions-applicability-of-the-mediation-act-2023
https://www.barandbench.com/law-firms/view-point/mediation-act-2023-
latest-amendments-guide

COMMERCIAL COURT ACT, 2015

COMMERICIAL COURT (PRE-MEDIATION AND SETTLEMENT) RULES,

2018

THE COMMERCIAL COURTS (STATISTICAL DATA) RULES, 2018

The National Legal Services Authority (Free and Competent Legal Services)
Regulations, 2010

The Legal Services Authorities Act, 1987

The Consumer Protection Act, 2019

ईपभोक्ता संरक्षण (मध्यकता) जिजनयमन, 2020 है।
LOK ADALAT
https://www.studyiq.com/articles/national-legal-services-authority/ -
Structure
https://ebooks.inflibnet.ac.in/lawp04/chapter/legal-services-authorities-act-
1987/

Importance and features of Lok Adalat

Resolution of disputes – essential for peace, amity, harmony and easy access
to justice. The court run on very formal processes and are presided over by
trained adjudicators. Huge expenditure leading to search for an aleterantive
complementary

How have they evolved in India as an Experiment in India after 42 nd

Amendment Act?
What are the powers under LSA Act, 1987?
S. 19(5) – Jurisdiction
Section 20 – Refering case to Lok Adalat
Section 20(4) – Justice Equity and Fair play
Section 21 – Award of the Lok Adalat
Section 22 – Power of the Lok Adalat

What is the structure of institutions?

Section 3: Constitution of National Legal Services Authority
Section 3-A: Supreme Court Legal Services Committee
4. Functions of the Central Authority.—The
[6. Constitution of State Legal Services Authority.—(1)
7. Functions of the State Authority – Legal Service, Conduct Lok
Adalat, Preventive Measures
8-A. High Court Legal Services Committee.—(1)
9. District Legal Services Authority.—(1)
10. Functions of the District Authority.—(1)
12. Criteria for giving legal services.—Every
13. Entitlement for legal services.—(1)

Power of Judicial Review

 P.T. Thomas v. Thomas Job, (2005) 6 SCC 478
 State of Punjab v. Jalour Singh, (2008) 2 SCC 660 - Challenge to
award passed by Lok Adalat-Challenge to award of Lok Adalat can be
made only by filing a writ petition under Article 226 and/or Article 227
of Constitution of India and that too on very limited grounds. Civil suit
is not maintainable therefore, Bhargavi Constructions v. Kothakapu
Muthyam Reddy.
 Though a Lok Adalat award is not the result of a contest on merits, it
is as equal and on a par with a decree on compromise and will have
the same binding effect and be conclusive. It is final and permanent, is
equivalent to a decree executable, and is an ending to the litigation
among the parties.
 State of WB v. UOI
 In Bihar Legal Support Society v. The Chief Justice of
India(1986) 4 SCC 767 , the Court observed:
“the weaker sections of Indian society have been deprived of justice
for long long years; they have had no access to justice on account of
their poverty, ignorance and illiteracy…The majority of the people of
our country are subjected to this denial of ‘access to justice’ and
overtaken by despair and helplessness, they continue to remain
victims of an exploitative society where economic power is
concentrated in the hands of a few and it is used for perpetuation of
domination over large masses of human beings…
PERMANENT LOK ADALATS
Chapter VI-A of LSA Act - PRE-LITIGATION CONCILIATION AND
SETTLEMENT

22-A Definitions—In this Chapter and for the purposes of Sections 22 and
23, unless the context otherwise requires,—
(a) “Permanent Lok Adalat” means a Permanent Lok Adalat established
under Section 22-B(1).

Section 22-B(1):

22-C. Cognizance of cases by Permanent Lok Adalat—(1) Any party to

a dispute may, before the dispute is brought before any court, make an
application to the Permanent Lok Adalat for the settlement of dispute:
Provided that the Permanent Lok Adalat shall not have jurisdiction in
respect of any matter relating to an offence not compoundable under
any law:
Provided further that the Permanent Lok Adalat shall also not have
jurisdiction in the matter where the value of the property in dispute
exceeds ten lakh rupees:
22-E. Award of Permanent Lok Adalat to be final—(1) Every award of
the Permanent Lok Adalat under this Act made either on merit or in terms
of a settlement agreement shall be final and binding on all the parties
thereto and on persons claiming under them.
(2) Every award of the Permanent Lok Adalat under this Act shall be
deemed to be a decree of a civil court.

 Legal Services Authority Act envisages setting up of Permanent Lok

Adalats for public utility services. Permanent Lok-Adalat has both
conciliatory and limited adjudicatory powers [Section 22(C)(8)]
 Jurisdiction:
 » The public utility services referred to in Section 22-A (b) have the
largest share of such litigations as they have a huge consumer
base.
» Permanent Lok Adalat have no jurisdiction in respect of any matter
relating to an offence not compoundable under any law and
» the matter where the value of the property in dispute exceeds ten
lakh rupees.

The National Legal Services Authority (Free and

Competent Legal Services) Regulations, 2010

3. Application for legal services.—(1)

4. Legal Services Institution to have a front office.—(1)
[5. Proof of entitlement of free legal services.—A
[8. Selection of legal practitioners as panel lawyers.—(1)
[10. Monitoring and Mentoring Committee.—(1)

MEDIATION UNDER CONSUMER CASES

1. Decoding Mediation Act, 2023