Category: Articles and Columns

Supreme Court

Supreme Court Clarifies that Enablement Clauses are not Arbitration Agreements under Section 7, Redefining Threshold of Referral to Arbitration

In BGM and M-RPL-JMCT (JV) Vs. Eastern Coalfields Ltd., the Supreme Court said that enablement clauses, those containing words like “may” are not binding arbitration agreements within the meaning of Section 7 of the Arbitration and Conciliation Act, 1996. Rejected the appointment of arbitrator by the Calcutta High Court, and said that only unambiguous mandatory words generate enforceable arbitration agreements. This ruling improves contract drafting norms and restricts court’s referral powers to prima facie inquiry under Section 11.

byJigeesha Vaishnav
Supreme Court

Supreme Court eliminates harsh censure of District Judge and imposes judicial restraint and procedural justice for denigration of lower judiciary

In Kaushal Singh Vs. State of Rajasthan, the Supreme Court invalidated defamatory comments of the Rajasthan High Court against a District Judge who had granted bail, holding that these strictures in the absence of hearing are against natural justice and judicial independence. The Court repeated that criticising subordinate judges should be dealt with administratively, not judicially. It reiterated the requirement of procedural fairness, judicial restraint and made it clear that guidelines for bail are advisory, not obligatory.

byJigeesha Vaishnav