India: Arbitration & Dispute Resolution

A two judge bench of the Hon’ble Supreme Court of India (“Supreme Court”) in S. Valliammai and Ors. vs. S. Ramanathan and Anr. recently held that Order II Rule 2, Code of Civil Procedure, 1908 (“CPC”) cannot constitute a ground for rejection of plaint under Order VII Rule 11(d) of the CPC. The Supreme Court drew a critical distinction between the two provisions clarifying that while Order II Rule 2 curtails the right to sue for certain claims or reliefs, but it does not bar filing of a suit under Order VII Rule 11(d) of the CPC.

In a recent judgement, ABS Marine Services vs. Andaman and Nicobar Administration1, the Supreme Court, inter alia, held that allowing a party to unilaterally judge a dispute violates the Rule of Law and the maxim ubi jus ibi remedium

Even though LOI’s are routinely employed by commercial parties as the initial step toward the execution of a formal agreement, their effect, whether they culminate in a concluded contract or operate as an expression of an intent to contract in the future, has engaged the courts and stakeholders in long time debates.