HRM 4304-21: Collective Bargaining - Unit IV Article Review

HRM 4304-21: Collective Bargaining Unit IV Article Review

Article Title

‘‘The Curious Case Of Bina Modi v. Lalit Modi: Permissibility of Anti-Arbitration Injunctions In India.’’

Journal Name and Date

The name of the journal in which the above article is published is Mondaq Business Briefing.

The article was published on 26th October 2021.

Key points

There could be the introduction of the anti-arbitration proceedings against the parties to prevent one party from not following up on the resolutions reached and also to ensure that there is no incurring of unnecessary costs. The proceedings of anti-arbitration are a necessary and a legally allowable framework under the common law jurisprudence regarding arbitration.

The anti-arbitration proceedings could be used to afford those people with the low bargaining power some form of protection from the large firms or the businesses that could have a lot of powers during the arbitration process.

The issue in the case is the trust deed that was executed by K.K. Modi in 2014 (Advani, 2021). The clause 36 of the trust deed gives the directions on how the disputes arising from the clause can be settled. After the end of the meeting in Dubai, the family members of the Late Modi had issues regarding the execution and the administration of the trust deed.

Lalit Modi, one of the family members related to the late Modi invoked the arbitration rule so that there can be the grant of emergency measures against the family and this application for arbitration was made to the International Court of Arbitration that is located in Singapore (Advani, 2021). Charu Modi and Samir, siblings of Lalit seemed quite aggrieved by the decision and they decided to file an injunction in a Delhi court to prevent the arbitration proceedings from being instituted.

Summary

There are some people who may seek injunctions to invalidate an arbitration proceedings because there is no earlier agreement in place (Advani, 2021). The Court used its powers to determine that the suits that were brought before it seeking to invalidate an arbitration or coming up with injunctions to prevent an arbitration are not maintainable. The cognizance of the Supreme Court is duly required in this situation to ensure that anomalous situations and the issuance of the conflicting rulings do not happen in the present and also in future.

The contention by an applicant that an earlier decision be a legally binding agreement in the court cannot be admissible if this contention does not state the key facts or issues of the case as stated in the law. The ruling of the courts also stated that the civil courts do not have a jurisdiction over the arbitration proceedings (Advani, 2021). There is also room for uncertainty on whether the court system should invalidate the proceedings of arbitration because it seemed that the judicial system appears to be quite silent on this important matter.

Personal Evaluation

The injunctions against the arbitration to this author seems like a clash in the legal field and also the clash against the courts. These injunctions can invalidate the process of arbitration and the parties may not take the arbitration process quite seriously because they are aware that there could be some parties that may move to the higher courts and seek injunction. While in this article the application for anti- arbitration injunction happen in the family civil cases involving the trusts, they can also be applied in the professional setting involving arguments between employees and the employers when the two want to settle disputes among them.

According to the Indian Corporate Law Article, an anti-arbitration injunction may be used to curtail the freedom of the tribunal specifically when it wants to establish its own jurisdiction. The provision can also be abused by the people who want to delay the outcome of a serious and a honest arbitration engagement (Chandola & Dastidar, 2020). Even if the people argue that the anti-arbitration injunctions can be used in the streamlining of the arbitration proceedings and can be a remedy for the perfecting arbitration, there is a thin line and there could actually be people out to scuttle the whole process.

References

Advani, H. (2021, October 26). The Curious Case of Bina Modi v. Lalit Modi: Permissibility Of

Anti-Arbitration Injunctions In India. Mondaq Business Briefing, NA. https://link.gale.com/apps/doc/A681609731/ITOF?u=oran95108&sid=ebsco&xid=830b8239

Chandola, A., & Dastidar, J. (2020, November 27). Anti-Arbitration injunctions: Judicial trends and finding the middle path. India Corporate Law. https://corporate.cyrilamarchandblogs.com/2020/11/anti-arbitration-injunctions-judicial-trends-and-finding-the-middle-path/