Compliance With Section 21 Is Mandatory Before Commencing Arbitral Proceedings After Setting Aside Of Arbitral Award

The Bombay High Court in Harkisandas Tulsidas Pabari & Anr. v. Rajendra Anandrao Acharya & Ors¹. exercised its jurisdiction under Section 37 of Arbitration & Conciliation Act, 1996 ("Act") to dismiss the Arbitration Appeals filed by the Appellants and upheld the Order passed by the Single Judge under Section 34 of the Act which set aside Arbitral Award dated September 21, 2005 ("Impugned Award") on the grounds that the (i) Arbitrator lacked authorisation to recommence the arbitral proceedings; (ii) Memorandum of Understanding dated July 20, 1994 ("MoU") did not constitute a concluded contract between the parties and (iii) MoU was impossible of being specifically performed through execution of the Impugned Award.