Between The Lines... July 2023

KEY HIGHLIGHTS

• Delhi High Court: An arbitration clause contained in a contract perishes upon its novation.
• NCLT Hyderabad rejects resolution plan for being incompliant with Regulation 36B 4(A) of the CIRP Regulations.
• Madras High Court rejects enforcement of a foreign arbitration award which was passed without considering FEMA violations and fraud in share valuations.
• NCLAT: NCLTs and NCLAT have the power to recall their judgments.

I. Delhi High Court: An arbitration clause contained in a contract perishes upon its novation.

The Delhi High Court ("Delhi HC") has, in its judgement dated June 2, 2023, in the matter of B. L. Kashyap and Sons Limited v. Mist Avenue Private Limited [Commercial Arbitration 190/2019], held that an arbitration clause contained in a contract would perish with its novation if the novated contract does not contain any arbitration clause.