15 September 2021, Wednesday

3 years ago

Awards set aside for no evidence and the tribunal unauthorizedly deciding ex aequo et bono: Madras High Court

15 September 2021 | AKG Cars Pvt. Ltd. v. Nissan Motor India Pvt. Ltd. & connected matter | Arb. OP No. 314 of 2021 & connected matter | Vishal Abikaran v. Nissan Motor India Pvt. Ltd. & connected matter | Arb. OP No. 315 of 2021 & connected matter | N Sathish Kumar J | Madras High Court | | 2021 SCC OnLine Mad 5148 and 5152

Two sets of cases arose from the termination of a car dealership by Nissan. The tribunal awarded ten lakhs in each reasoning that the space the dealers had earlier built to set up the dealership would go unutilized.

The awards were set aside. Apart from precedent on Section 34 ACA, the court relied on Section 28 (2) ACA under which the arbitral tribunal shall decide ex aequo et bono or as amicable compositeur only if the parties have expressly authorised it to do so.” There was no such authority in this case.

Read the AKG Cars decision here and the Vishal Abikaran here.

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