Supreme Court Scraps Tribunal's Sweeping Interim Orders in Arbitration Dispute
· India · Hindustan Times, Times of India
The Supreme Court has set aside an arbitral proceeding after ruling that the tribunal initiated its work without the consent of the appellants. A bench of justices JB Pardiwala and K Vinod Chandran noted that Arth Micro Finance Pvt Ltd had objected to the tribunal's appointment, citing close links between the tribunal members and Shivalik Small Finance Bank Ltd. Despite this objection, the tribunal issued three interim orders that froze bank accounts across multiple lenders, permitted the respondent bank to take possession of properties, and directed the transfer of deposits. The apex court held that the initiation of the arbitration was non est in law and that the resulting measures were arbitrary. The underlying dispute stems from an agreement containing an arbitration clause between the micro-finance firm and the small finance bank.
Why it matters
The ruling reinforces procedural safeguards in private arbitration by barring tribunals from proceeding without demonstrable mutual consent and unchecked interim powers.
Read the original report — Hindustan Times
Join us on Telegram
Breaking news the moment it lands. At 10,000 members we ship the Android app.