Injunction by Way of Arbitration

Being amongst the best corporate law firm in Gurugram , topic of Injunction or stay is one of our practice areas, briefly.

An injunction or stay is a legal remedy that can be granted by a court to compel or restrain a person from performing a particular act or engaging in a certain behaviour. It is a court order that requires a party to do or refrain from doing something.

There are two main types of injunctions: a prohibitory injunction and a mandatory injunction. A prohibitory injunction restrains a party from engaging in a particular behavior, while a mandatory injunction compels a party to perform a specific act.

Injunctions can be temporary or permanent. Temporary injunctions, also known as interim injunctions or preliminary injunctions, are granted on an interim basis until a final decision is made on the matter. Permanent injunctions are granted as a final resolution of the matter.

Injunctions are commonly sought in cases involving breach of contract, intellectual property disputes, and cases where irreparable harm or loss may occur if an action is not taken or stopped.

To obtain an injunction, a party must make an application to the court, usually supported by evidence showing that there is a reasonable likelihood of success on the merits of the case and that the balance of convenience favors granting the injunction. The court will consider all relevant factors before deciding whether to grant the injunction.

Injunctions can also be granted in the context of arbitration proceedings. Parties to an arbitration agreement can seek interim relief from either a court (under Section 9 of the Indian Arbitration and Conciliation Act, 1996) or an arbitral tribunal (under Section 17 of the Act) to maintain the status quo, prevent dissipation of assets, secure the amount in dispute, or preserve evidence that may be relevant to the dispute.

Having a team of best corporate lawyer in Gurugram, we are dealing with several such cases, section 9 of the Arbitration and Conciliation Act, 1996 is a provision under Indian law that deals with interim measures that can be granted by a court before or during arbitration proceedings.

Under Section 9, a party to an arbitration agreement can apply to a court for interim measures such as orders to maintain the status quo, to prevent the disposal of assets, to secure the amount in dispute, or to preserve evidence that may be relevant to the dispute. The court may grant these measures if it is satisfied that the circumstances of the case justify the granting of such measures.

The court has the power to impose conditions while granting interim measures and may modify, suspend or terminate any such measures at any time. It may also require the party requesting an interim measure to provide security for the costs of the other party.

Section 9 of the Arbitration and Conciliation Act, 1996 provides parties with a valuable tool to protect their interests and prevent the other party from taking actions that could jeopardize the arbitration proceedings.

Similarly, section 17 of the Arbitration and Conciliation Act, 1996 is a provision under Indian law that deals with interim measures that can be granted by an arbitral tribunal during the course of arbitration proceedings.

Under Section 17, the arbitral tribunal may grant interim measures similar to those that can be granted by a court under Section 9, such as orders to maintain the status quo, to prevent the disposal of assets, to secure the amount in dispute, or to preserve evidence that may be relevant to the dispute.

So, she listened to the advice and agreed to settle the dispute, hence we initiated discussion with all stakeholders, while the damages are done for the brand it’s a salvage time now, and we reached an amicable settlement in three weeks’ time, to get defamation and other charges dropped.

The party seeking an interim measure from the arbitral tribunal must make an application to the tribunal, which will then decide on the application after giving notice to all parties involved. The tribunal has the power to impose conditions while granting interim measures and may modify, suspend, or terminate any such measures at any time.

Being one of the best lawyer in Gurugram, we say If a party fails to comply with an interim measure granted by the tribunal, the other party may request the court to enforce the measure as if it were an order of the court.

Section 17 of the Arbitration and Conciliation Act, 1996 provides parties with a mechanism to obtain interim relief from the arbitral tribunal during the course of arbitration proceedings, which can help to prevent irreparable harm or loss.