Calcutta High Court Rejects Section 45 Arbitration Plea, Holding Consent Decree Binds Charterer

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Why it matters

The Calcutta High Court held that a dispute cannot be referred to arbitration under Section 45 of the Arbitration and Conciliation Act, 1996 where doing so requires treating an existing consent decree as non-binding on a charterer. It ruled that such relief cannot be granted at the execution stage without proceedings to set aside the decree.

Key points

The Calcutta High Court rejected an application under Section 45 of the Arbitration and Conciliation Act, 1996.
The court held that referring the dispute to arbitration would require treating an existing consent decree as non-binding on the charterer.
A consent decree cannot be treated as non-binding at the execution stage without proceedings to set it aside.

What changed

Clarified that a consent decree in an admiralty suit remains binding on a charterer at the execution stage, precluding a referral to arbitration under Section 45 absent formal proceedings to set the decree aside.

Who it affects

Parties to admiralty suits, charterers, and litigants seeking reference to arbitration under Section 45 during decree execution.

Jurisdiction

Calcutta High Court

Sources and original links

Open the links below to read the material this update is based on.

Open source report — SCC Times →

This update is based on legal reporting. An official judgment or notification link is not currently available here, so please check the official text before relying on it.

Written by Law At Ease editorial desk

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