The Delhi High Court has annulled an arbitral award against Oravel Stays (OYO) in a dispute with Zostel over a 2015 acquisition deal. The ruling highlights the necessity for formal agreements in business transactions, emphasizing that non-binding term sheets may not ensure enforceability in legal proceedings. Final order details are pending.
Justice KV Viswanathan of the Supreme Court dissented, stating that courts lack the authority to modify arbitral awards under Sections 34 and 37 of the Arbitration and Conciliation Act. He emphasized that Article 142 cannot supplant substantive law, opposing the majority view that allowed for limited modifications, warning of potential complications in international enforcement.
The Madhya Pradesh High Court ruled that a mother can be considered an accomplice to rape under Section 109 of the IPC if she encourages the crime. The accused man was convicted of rape, while his mother faced charges of abetment, highlighting the equal responsibility for those who facilitate such acts.
The Supreme Court will form a Constitution Bench to examine the authority of courts to modify arbitral awards. A bench led by Chief Justice of India Sanjiv Khanna, along with Justices Sanjay Kumar and KV Viswanathan, referred the matter to a five-judge bench on Thursday. The decision highlights the importance of clarifying judicial powers in arbitration cases.
