Law of Ontracts Relating to Ipr, Adr and Cyber Law -Llm Pgcl 3rd Sem Notes

8/10/2019 Law of Ontracts Relating to Ipr, Adr and Cyber Law -Llm Pgcl 3rd Sem Notes

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EXPLAIN THE MEANING OF INTELLECTUAL PROPERTY RIGHRS AND DISCUSSTHEIR IMPORTANCE

Intellectual property r!"t# nclu$e# all r!"t# re#ultn! %ro& ntellectual act'ty n t"en$u#tral( #cent%c( lterary or art#tc %el$#) Mo#tly one t"n*# o% property et"er &o'a+le or

&&o'a+le property) Intellectual property la, con%er# property r!"t# on ntan!+le#)Intellectual property "a# +een c"aracter-e$ a#. In%or&aton ,"c" can +e ncorporate$ n tan!+le o+/ect# at t"e #a&e t&e n an unl&te$nu&+er o% cope# at $%%erent locaton# any,"ere n t"e ,orl$) T"e property # not n t"o#ecope# +ut n t"e n%or&aton re%lecte$ n t"o#e cope#0)T"e o+/ect# o% Intellectual property are t"e creaton# o% t"e "u&an &n$( t"e "u&an ntellect)T"# # ,"y t"# *n$ o% property # calle$ ntellectual property) In #&pl%e$ ,ay one can#tate t"at ntellectual property relate# to pece# o% n%or&aton ,"c" can +e ncorporate$ ntan!+le o+/ect# at t"e #a&e t&e n an unl&te$ &e&+er or cope# at $%%erent locaton#any,"ere n t"e ,orl$) T"e property # not n t"o#e cope# +ut n%or&aton re%lecte$ n t"o#ecope#) S&lar to property n &o'a+le t"n!# an$ &&o'a+le property( ntellectual property

too # c"aracter-e$ +y certan l&taton# %or e1a&ple l&te$ $uraton n t"e ca#e o%copyr!"t an$ patent#)T"e con'enton e#ta+l#"n! t"e 2orl$ Intellectual Property Or!an-aton n Stoc*"ol& n3456 pro'$e# t"at Intellectual Property #"all nclu$e r!"t# relatn! to

3) Lterary( art#tc an$ #cent%c ,or*#7) Per%or&ance# o% per%or&n! art#t#( p"ono!ra an$ +roa$ca#t#8) In'enton# n all %el$# o% "u&an en$ea'our9) Scent%c $#co'ere#:) In$u#tral $e#!n#5) Tra$e&ar*#( #er'ce &ar*# an$ co&&ercal na&e# an$ $e#!naton#6) Protecton a!an#t un%ar co&petton)

T"e *no,le$!e o% Intellectual Property r!"t# # &u#t to a co&&on &an) A co&&on &ane'ery,"ere an$ e'ery t&e co&e acro## t"e t"n!# create$( n'ente$( $#co'ere$ an$

pro$uce$ +y #o&e "u&an &n$) A $e#!n o% a "ou#e( t"e &ateral u#e$ n a "ou#e( t#%urn#"n!# l*e a carpet( #o%a( %r$!e( tele'#on( telep"one( pantn!#( p"oto!rap"#( ,allcloc*( t"e artcle# o% $aly u#e l*e a pen#( +oo*#( t"e ne,#paper#( t##ue paper#( #"oe# etc( t"et"n!# t"at are ,orn +y "& l*e /ean#( t;#"rt# etc t"e te l*e con'eyance l*e cycle#( car#(

+*e# etc t"e l#t # en$le##) Al&o#t all t"n!# t"at #urroun$ a co&&on &an are one ,ay orot"er( property ntellectual properte# o% #o&e one) So&e+o$y "a# #pent "# t&e( &oney an$ener!y to n'ent an$ create t"e&) T"ere%ore( t"e#e all co&&on t"n!# are ntellectual propertyo% #o&eone an$ are protecte$ +y la,) T"e#e te o% ntellectual properte# can +e cla##%e$nto t,o &an cate!ore#

3) In$u#tral property te) Copyr!"t an$ relate$ r!"t# te)

T"e n$u#tral property te nclu$e all #ort o% n'enton#( tra$e &ar*#( n$u#tral $e#!n#)T"ey are %oun$ n all aroun$ u#) All n'enton# are co'ere$ un$er t"# cate!ory) An n'enton"a# +een $e%ne$ a# a proce## or a pro$uct ,"c" pro'$e# a ne, ,ay o% $on! #o&et"n! or

pro'$e# a ne, #oluton to a pro+le&) In'enton# are protecte$ +y t"e patent#) T"e o,ner o%n'enton# can !et "# n'enton re!#tere$ un$er a patent) A%ter t"# pero$ t"e n'enton #a'ala+le to all %or co&&ercal e1plotaton an$ t +eco&e# a pu+lc property)So&e o% t"e pro$uct# ,e u#e n $aly l%e are protecte$ +y Tra$e &ar*#) T"e tra$e&ar* la,#are !enerally re!#tere$ %or #e'en year# +ut t"ey can +e rene,e$ n$e%ntely +y applyn!

a!an an$ payn! t"e re


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T"e copy r!"t# are pro'$e$ %or t&e# l*e lterary( &u#cal( art#tc ,o*# l*e #on!#($alo!ue#( poetry etc are pro'$e$ to t"e creator#) Copy r!"t pro'$e e1clu#'e r!"t to t"ecreatoro to u#e or aut"or-e$ ot"er to u#e t"er ,or*#)T"e repro$ucton n 'arou# %or( copyn!( prntn!( recor$n! or a$aptaton are pro"+te$)T"e r!"t pro'$e# r!"t to t"e creator t"at # t"e %nancal +ene%t %or a la#tn! pero$ o% 5=

year# a%ter t"e creator# $eat")A co&&on &an co&e# acro## lterary( art#tc( &u#cal ,or*# n "# $aly l%e)T"e properte# "a'e +een co'ere$ un$er a patent or a copyr!"t or a tra$e&ar*) Snceco&&on &an# l%e # 'ery clo#ely ln*e$ ,t" artcle# an$ pro$uct# ,"c" are protecte$ +yla, ,"c" un$er Intellectual property r!"t#) T"e copyn!( &taton( a$aptaton an$unaut"or-e$ repro$ucton o% t"e#e t"#( ,t"out t"e per#on o% t"e o,ner( &ay a&ount to#erou# o%%ence)

IPR CONTRACTS, BREACH AND REMEDIES

Accor$n! to Secton 3= o% t"e In$an Contract Act( 3>67( all a!ree&ent# are contract# % t"eyare &a$e +y t"e %ree con#ent o% parte# co&petent to contract( %or a la,%ul con#$eraton an$

,t" a la,%ul o+/ect an$ are not e1pre##ly $eclare$ to +e 'o$) T"e IPR contract# ,"ere t"eo,ner o% t"e property "ol$er or t"e lcen#e o% t"e property "ol$er tran#%er t"e ntellectual

properte# t"rou!" tran#%er( #ell( a##!n( tran#%er o% lcen#e r!"t# etc ,"ere t"e lcen#ee ,llenter nto an a!ree&ent ,t" ot"er#) E1) T"e aut"or o% t"e +oo* aut"or#e t"e pu+l#"er to

prnt an$ #ell t"e +oo*# %or ,"c" "e !et# t"e royalty %or e'ery prnt t"e pu+l#"er &a*e# or%or t"e pero$ t"e pu+l#"er prnt#) T"e %a&ly o% late ?a,a"arlal Ne"ru are #tll !ettn! t"eroyalty %or t"e +oo* .D#co'ery o% In$a0 ,rtten +y ?a,a"arlal Ne"ru) 2"le tran#%errn! t"entellectual r!"t# +y ,ay o% lcen#n!( a##!n&ent( #ell etc( t"e o,ner o% t"e property r!"t#enter nto an a!ree&ent)An a!ree&ent en%orcea+le +y la, # a contract accor$n! to #ecton 7@" o% In$an contractAct( 3>67) All a!ree&ent# are contract# % t"ey are &a$e +y t"e %ree con#ent o% t"e parte#(co&petent to contract %or a la,%ul con#$eraton an$ ,t" a la,%ul o+/ect not e1pre##ly$eclare$ a# 'o$) T"at # %ul%lln! t"e e##ental# o% #ecton3= o% t"e contract Act) T"econ#$eraton %or pu+l#"n! a +oo* # to pay royalty to t"e aut"or o% t"e +oo*)T"e +reac" o% contract ,t" re!ar$ to ntellectual property r!"t# # *no,n a# n%rn!e&ent o%r!"t#) T"e %ollo,n! are t"e n%rn!e&ent# an$ re&e$e# o% ntellectual r!"t# o% copy r!"t#(

patent# an$ tra$e&ar*#)Infringments of Copyright

So&e o% t"e co&&only *no,n act# n'ol'n! n%rn!e&ent o% copyr!"tB Ma*n! n%rn!n! cope# %or #ale or "re or #elln! or lettn! t"e& %or "re

Per&ttn! any place %or t"e per%or&ance o% ,or*# n pu+lc ,"ere #uc" per%or&ance

con#ttute# n%rn!e&ent o% copyr!"t D#tr+utn! n%rn!n! cope# %or t"e purpo#e o% tra$e or to #uc" an e1tent #o a# to

a%%ect pre/u$cally t"e ntere#t o% t"e o,ner o% copyr!"t Pu+lc e1"+ton o% n%rn!n! cope# +y ,ay o% tra$e

I&portaton o% n%rn!n! cope# nto In$a)

Civil Remeies for Copyright Infringement

T"e copyr!"t o,ner # enttle$ to re&e$e# +y ,ay o% n/uncton#( $a&a!e# an$ account#)Anton Pller Or$erB T"e Court# n En!lan$ "a'e n'ente$ a ne, or$er %or +etter protecton o%copy r!"t an$ ot"er %or o% ntellectual property) T"e court &ay pa## an e1 parte $rectn!t"e $e%en$ant to per&t to enter "# pree# acco&pane$ +y #olctor or attorney( n#pect$ocu&ent#( artcle# an$ ta*e cope# or re&o'e t"e& %or #a%e cu#to$y) T"# # an or$er na&e$a%ter a plant%% n a ca#e ,"ere #uc" an or$er ,a# %r#t pa##e$)Un'er#al t"er&o#en#or# lt$ H++en an$ ot"er#)


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The Crimin!l Offen"e

Any per#on ,"o *no,n!ly n%rn!e# or a+et# t"e n%rn!e&ent o% t"e copyr!"t n any ,or*co&&t# cr&nal o%%ence un$er Secton 58 o% t"e Copyr!"t Act) T"e &n&u& pun#"&ent%or n%rn!e&ent o% copyr!"t # &pr#on&ent %or #1 &ont"# ,t" t"e &n&u& %ne o% R#):=(===

In t"e ca#e o% a #econ$ an$ #u+#e


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@+ Fal#ely applyn! t"e tra$e&ar* to !oo$# or #er'ce#T"e pun#"&ent %or t"e a+o'e o%%ence# #"all not +e le## t"an 5 &ont"# &pr#on&ent ,"c"&ay e1ten$ to t"ree year# an$ a %ne ,"c" #"all not +e le## :=(===;( +ut &ay e1ten$ toRupee# T,o La*") Ho,e'er #econ$ an$ #u+#e


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Intellectual property la, $ate# at lea#t a# %ar +ac* a# &e$e'al Europe) In t"o#e t&e#(

.!ul$#(0 or a##ocaton# o% art#an# n a partcular n$u#try( ,ere !rante$ aut"orty +y t"e

!o'ern&ent# to control t"e re!ulaton an$ con$uct o% t"e 'arou# n$u#tre#) T"e#e !ul$#

e1erc#e$ control o'er ,"at te coul$ +e &porte$( &ar*ete$ an$ pro$uce$ an$ t"e &anner

n ,"c" ne, n'enton#( $e'ce# an$ proce$ure# coul$ +e ntro$uce$ to t"e #trea& o%co&&erce) ecau#e t"e aut"orte# %or t"e#e !ul$# ,ere !'en +y t"e !o'ern&ent#( an$

+ecau#e t"ey concentrate$ t"e po,er to re!ulate an n$u#try n a #elect %e,( an$ ,ere not

earne$ +y nno'aton( #*ll or creat'ty( t"e#e !ul$# $$ %ar &ore to #t%le creat'ty an$

n'enton t"an to encoura!e t) Rena##ance nort"ern Italy # t"ou!"t to +e t"e cra$le o% t"e IP

#y#te& #o t"e concept # not a ne, one) A enetan la, o% 3969 &a$e t"e %r#t #y#te&atc

atte&pt to protect n'enton# +y a %or& o% patent( ,"c" !rante$ an e1clu#'e r!"t to an

n$'$ual) In t"e #a&e century( t"e n'enton o% &o'a+le type an$ t"e prntn! pre## +y

?o"anne# Guten+er! aroun$ 399= contr+ute$ to t"e +rt" o% t"e %r#t copyr!"t #y#te& n t"e

,orl$)

To,ar$# t"e en$ o% t"e 34t" century( n'ent'e ne, ,ay# o% &anu%acture "elpe$ tr!!er lar!e;

#cale n$u#tral-aton acco&pane$ +y #uc" p"eno&ena a# rap$ cty !ro,t"( e1pan$n!

ral,ay net,or*#( t"e n'e#t&ent o% captal( an$ !ro,n! tran#oceanc tra$e) Ne, $eal# o%

n$u#tral#&( t"e e&er!ence o% #tron!er central-e$ !o'ern&ent#( an$ #tron!er natonal#&

le$ &any countre# to e#ta+l#" t"er %r#t &o$ern IP la,#)

Intellectual property la, at t"at t&e ,a# $r'en not +y an ntere#t n creaton an$ nno'aton(

+ut rat"er +y poltcal an$ rel!ou# &ot'aton#) For e1a&ple( t"e 3::5 e#ta+l#"&ent o% t"e

Statoner# Co&pany# &onopoly n En!lan$ ,a# lar!ely nten$e$ to "elp l&t t"e Prote#tantRe%or&aton &o'e&ent# po,er) y puttn! t"e entre prntn! n$u#try n t"e control o% t"#

co&pany( t"e !o'ern&ent an$ c"urc" coul$ pre'ent t"e $##e&naton o% $ea#)

See Copyright for the Nineties( Gor&an an$ Gn#+ur!( 3( t"e Mc"e Co&pany @3448) See

al#oIntellectual Property: The Law of Copyrights, Patents and Trademarks( Sc"ec"ter an$

T"o&a#( 38( 2e#t Group @7==8 @#tatn! t"e &onopoly ,a# !rante$ n 3::6)

HISTORICA: BAC>;RO-ND

3 Great $epre##on o% 348=# o% nternatonal tra$e

7 Many countre# &po#e$ re#trcton %or t"er #a%e !uar$#)

8 8= Octo+er 3496B78 countre# #!ne$ on GATT)

9 To #ettle $#pute# re!ar$n! ,"o !et# ,"at #"are o% t"e ,orl$ tra$e)

: En%orce$ on 3#t ?an 349>)

5 >t" roun$B Septe&+er 34>5B Uru!'ay)


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6 Mr) Art"er Dun*el( t"en Drector General co&ple$ $etale$ $ocu&ent *no,n

a# DUNJEL PROPOSAL) In t"#( na&ely( a!rculture( #er'ce K TRIP#( ,ere

nclu$e$)

> 3:t" Aprl 3449B MoroccoB 379 countre# #!ne$ an accor$ to !'e r#e to 2TO)

IPR DE?E:OPMENTS IN INDIA

3 3496B Patent# K De#!n# Act( 3433

7 344:B In$a /on# 2TO

8 344>B In$a /on# Par# Con'entonPCT

9 3444B Patent a&en$&ent pro'$e$ EMR retro#pect'ely %ro& 334:

: 7==8B 7n$ a&en$&ent n Patent# Act

5 Ter& o% Patent 7= year# a%ter 3> &ont"# pu+lcaton

6 Patent Tr+unal Set up at C"enna

> 7==:B Patent# @A&en$&ent Act 7==:

4 3444 7==:B Plant arete# an$ Far&er# R!"t# Act K o$'er#ty Act)

De#!n#( TMCopyr!"t Act# up$ate$ GI Re!#try #et up at C"enna) IP Act# TRIPS

Co&plant

The E"onomi" Theory of Intelle"t%!l Property @ ?ulu# Stone( n "# ,or* Socal

D&en#on# o% La, an$ ?u#tce( #ay#( .It "a# +een #een t"at cla o% econo&c purport are

entan!le$ ,t" la, n #o&e o% t"e &o#t nt&ate cla o% per#onalty) Ro#coe Poun$ tooco&&ente$ on t"e cla##%caton# o% cla to control 'alua+le t"n!# to t"e e1clu#on o%

ot"er#) T"e ar!u&ent o% ?ulu# Stone( ,"o propoun$e$ t"e Econo&c T"eory( ar!ue$ t"at t"e

&a1&u& pro$ucton o% !oo$# an$ #er'ce# # t"e a& o% t"e #ocety) It can +e ac"e'e$ +y

&ean# o% &a1&u& pro$uct'ty) On #crutny( t can +e %oun$ t"at t"e


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nno'aton( t"e n'entor ,ll net"er "a'e &petu# to n'ent t"n!# nor n'e#t "u!e a&ount# o%

&oney t"at t"e re#earc" an$ $e'elop&ent re


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T"e ten$ency o% %r to patent t"er n'enton# "a# #&larly ncrea#e$ ,orl$,$e an$ #

partcularly notcea+le n ?apan( t"e Unte$ State#( an$ Europe) In ?apan( t too* 4: year# to

!rant t"e %r#t &llon patent#( ,"erea#( t too* only 3: year# to !rant t"e ne1t &llon)

Applcaton# %or patent# are al#o ncrea#n! n $e'elopn! countre#) It # !enerally a!ree$ t"attec"nolo!y an$ *no,le$!e "a'e playe$ an &portant role n econo&c !ro,t"( "o,e'er(

,"en t co&e# to e1plorn! t"e#e ##ue# n a &ult;/ur#$cton conte1t( t"e &o#t rele'ant

analy#e# are t"o#e t"at e1a&ne a ,orl$ co&po#e$ o% t,o type# o% countre#B a $e'elope$(

nno'atn! Nort" an$ t"e $e'elopn! countre#) T"e &an concern# "a'e +een ,"et"er

ncrea#e$ IPR protecton n t"e De'elopn! countre# ,oul$ ncrea#e @a t"e rate o% @!lo+al

!ro,t"( @+ t"e rate o% tec"nolo!y tran#%er %ro& t"e Nort" to t"e De'elopn! countre#( an$(

@c ,el%are le'el# n +ot" locaton#) A #tra!"t%or,ar$ partal e


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t"rou!" a 'arety o% ,el%are;en"ancn! c"annel#( nclu$n! tec"nolo!y tran#%er( tact #*ll

ac


10/37


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ntenton on t"e part o% t"e parte#( t"er # no contract +et,een t"e&) A!ree&ent# o% a#ocal or $o&e#tc nature $o not conte&plate le!al relaton#"p) A# #uc"( t"ey are notcontract#) (B!lfo%r v$ B!lfo%r ##*) In co&&ercal an$ +u#ne## a!ree&ent#( t"e

pre#u&pton # u#ually t"at t"e parte# ten$e$ to create le!al relaton# unle## re+utta+le +ye'$ence) In Rose 8 +r!n9 Co v$ Crompton Bros #/ AC 77( t ,a# "el$ t"ere ,a# no

+n$n! contract a# t"ere ,a# no ntenton to create le!al relaton#"p)

8 :!2f%l "onsier!tion Con#$eraton &ean# #o&et"n! n return) T"e a!ree&ent #le!ally en%orcea+le only ,"en +ot" t"e parte# !'e #o&et"n! an$ !et #o&et"n! n return)It nee$ not nece##ary +e n ca#" or *n$) It &ay +e an act or a+#tnence or proe to $o ornot to $o #o&et"n!) It &ay +e pa#t( pre#ent or %uture an$ nee$ not +e a$e


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> Cert!inty !n possi4ility of perform!n"e t"e a!ree&ent &u#t +e certan an$ not 'alueor n$e%nte @Secton 74) I% t # 'a!ue an$ t # not po##+le to a#certan t# &eann!( tcannot +e en%orce$) S"!mmel v$ O%ston O a!ree$ to purc"a#e a &otor 'an %ro& S on"re purc"a#e ter) T"e "re purc"a#e prce ,a# to +e pa$ o'er t,o year#) Hel$( t"ere

,a# no contract a# t"e ter ,ere not certan a+out rate o% ntere#t an$ &o$e o% pay&ent)No prec#e &eann! coul$ +e attr+ute$ to t"e ,or$# on "re purc"a#e #nce t"ere ,a# a,$e 'arety o% "re purc"a#e ter)

* :eg!l form!lities A contract &ay +e &a$e +y ,or$# #po*en or ,rtten) A# re!ar$# t"ele!al e%%ect#( t"ere # no $%%erence +et,een a contract n ,rtn! an$ a contract &a$e +y,or$ o% &out") It #( "o,e'er( n t"e ntere#t o% t"e parte# t"at t"e contract #"oul$ +e n,rtn!) T"ere are #o&e ot"er %or&alte# l*e #ta&pn! o% t"e $ocu&ent#( re!#traton( etc)(n t"e pre#ence o% ,tne##e#( etc) @Sec)3= para 7)

1h!t is IP li"ensing= E


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pa##e# no ntere#t +ut &erely &a*e# la,%ul t"at ,"c" ,oul$ ot"er,#e +e unla,%ul) @Canon

Ja+u#"* Ja#"a ') Green cart R$!e Co @Hon! Jon! Lt$ @3446 AC 67> @PC) A lcence #

!enerally reco!n-e$ a# "a'n! t"e le!al e%%ect o% ,a'n! a r!"t to #ue or pro#ecute) T"e

lcen#ee %or con$uct t"at ,t"out t"e lcence( ,oul$ +e actona+le) T"u#( a patent lcence # a

,a'er +y t"e patent o,ner o% "# r!"t to e1clu$e t"e lcen#ee %ro& &a*n!( u#n!( #elln!(o%%ern! %or #ale or &portn! t"e cla&e$ n'enton)

At t"e +are#t &n&u& le'el( a lcence # a &ere co'enant not to #ue or ot"er,#e en%orce

ntellectual property r!"t# a!an#t t"e lcen#ee ,"en t"e lcen#ee act# ,t"n t"e #cope o% t"e

lcence)@General Tal*n! Pcture# Corporaton ') 2e#tern Electrc Co 8=: US) Ho,e'er( t"#

$e%nton re%lect# only a part o% t"e &o$ern practce o% lcen#n!) It # narro, n t# #cope an$

t"e +are#t &n&u& a#pect o% t) T"ou!" t "elp# e1plan an &portant a#pect o% lcen#n!( e)(

t# pa##'e part) Mo$ern lcen#n! practce# o%ten ental &ore act'e co&&t&ent# +y t"e

lcen#or an$ &ore $yna&c e1pectaton# +y t"e lcen#ee re!ar$n! "# a+lty to u#e t"e

lcen#e$ property) Accor$n!ly( t"e e1tent o% r!"t# !rante$ n a lcence &ay #pan %ro& a &ereper#on to u#e t"e lcen#e$ property n #o&e l&te$ &anner @non e1clu#'e lcence to all

+ut o,ner#"p o% property @e1clu#'e lcence)

A lcence # t"at tran#%er o% ntellectual property ,"c" $oe# not a%%ect t"e &onopoly o% t"e

o,ner( e1cept +y e#toppn! "& %ro& e1erc#n! "# pro"+tory po,er# n $ero!aton o%

pr'le!e# con%erre$ upon lcen#ee) A# a &atter o% la,( a lcen#e # a !rant o% r!"t# t"at

repre#ent le## t"an all o% t"e r!"t# ,"c" ,oul$ acco&pany %ull o,ner#"p)

In a lcen#e( t"ere # no tran#%er o% propretary ntere#t +ecau#e +y lcen#n!( t"e o,ner retan#

t"e o,ner#"p to t"e r!"t# to t"at ntellectual property an$ t"u# retan# propretary control

o'er t) S&ply put( a lcence !rant# t"e lcen#ee r!"t# n property ,t"out tran#%errn!

o,ner#"p o% t"e property) Accor$n! to t"e !eneral prncple o% Co&&on la, a lcence $oe#

not con%er propretary r!"t#( +ut &erely &a*e# la,%ul ,"at ,oul$ ot"er,#e +e unla,%ul)

@Heap ') Hartley @3>>4 97 C"D 95>)

For te&poral $'#on#( an ntellectual property o,ner &ay lcen#e "# r!"t# %or a

pero$ ,"c" # le## t"an t"e %ull ter& o% t"e ntellectual property) For e1a&ple( t"e o,ner o%

a tra$e &ar* &ay !rant t"e r!"t to u#e "# tra$e &ar* %or a pero$ o% %'e year# or t"e o,ner

o% copyr!"t n a no'el &ay !rant $#tr+uton r!"t# to a lcen#ee %or a pero$ o% ten year#)Su+#tantally( a patent o,ner &ay lcence a &anu%acturer to &a*e t"e patente$ n'enton

,"le re#er'n! t"e r!"t to #ell t"e n'enton or t"e o,ner o% copyr!"t &ay !rant t"e r!"t to

tran#late "# ,or* n a partcular lan!ua!e ,"le re#er'n! t"e r!"t to #ell t"e n'enton or t"e

o,ner o% copyr!"t &ay !rant t"e r!"t to tran#late "# ,or* n a partcular lan!ua!e ,"le

re#er'n! ot"er r!"t# to "el%) In Pen!un oo*# Lt$) ') In$a oo* D#tr+utor# an$

ot"er#( t"e plant%%( Pen!un oo*# Lt$( ,"o ,a# t"e o,ner o% copyr!"t( %le$ a #ut a!an#t

certan In$an +oo* $#tr+utor#) It ,a# conten$e$ +y t"e plant%% t"at &portaton o%

A&ercan e$ton# +y $e%en$ant $#tr+utor# ,t"out a lcence %or t"e purpo#e o% re#ale n

In$a # an n%rn!e&ent o% "# copyr!"t#) T"e $e%en$ant# conten$e$ t"at t"ey "a$ la,%ullypurc"a#e$ pu+l#"e$ +oo*# n A&erca an$ "a$ &porte$ t"e& nto In$a %or #ale( #o t"ey are


14/37

not !ulty o% n%rn!n! t"e plant%%# copyr!"t) T"e court "el$ t"at &portn! an$ #elln! t"e

+oo*# ,t"out a lcence ,oul$ a&ount to 'olaton o% plant%%# copyr!"t) I&portaton #

%or+$$en unle## a lcence "a# +een !'en)

The %estion of 2hether one "!n li"en"e to oneself"a# +een $ec$e$ n Te1&o In$u#tre#(

Co&+atore K Ot"er# ') A


15/37

$epr'e# t"e lcen#or "el% %ro& e1erc#n! t" r!"t# t"u# !rante$) Snce an e1clu#'e

lcence "a# practcally t"e #a&e r!"t# an$ re&e$e# a# % t"e lcence ,ere an a##!n&ent(

t %ollo,# t"at t"e r!"t# !rante$ +y #uc" lcence &u#t +e capa+le o% %or&n! t"e #u+/ect

&atter o% a 'al$ a##!n&ent) T"at $oe# not &ean t"at a partcular ntellectual property

coul$ +e e1clu#'ely lcen#e$ to only one per#on) T"e &onopoly r!"t# #ecure$ +y anntellectual property can +e e1clu#'ely lcen#e$ out n ,ay# l&te$ only +y t"e

&a!naton o% t"e parte#) A cle'er $'#on an$ apporton&ent o% t"e#e r!"t# ,oul$

per&t t"e ntellectual property o,ner to &a!nat'ely ##ue #e'eral e1clu#'e lcence# to

$%%erent lcen#ee# #&ultaneou#ly) T"# create# roo& %or enor&ou# creat'ty n t"e

lcen#n! act'ty)

/* Non5E


16/37

') Ra/n$er Ju&ar Aruya( t"e $e%en$ant ,a# plant%%# lcen#ee ,t" aut"or-aton to

reprnt an$ &ar*et +oo*# %or a pero$ o% %'e year#) On t"e e1pry o% t"e #a$ ter& o% t"e

lcence( t"e parte# entere$ n #o&e ne!otaton# to e1ten$ lcence) Durn! t"e#e

ne!otaton#( t"e $e%en$ant lcen#ee( ,t"out per#on o% t"e lcen#or reprnte$ an$

&ar*ete$ certan +oo*# n re#pect o% ,"c" lcen#e "a$ e1pre$) T"e court "el$ t"at n t"epre#ence o% #pec%c &an$ate o% t"e Copyr!"t Act re


17/37

#een a# an e1cepton to copyr!"t +ecau#e t ta*e# a,ay t"e nor&al r!"t o% a copyr!"t

o,ner to $eter&ne ,"et"er an$ "o, to !rant a lcence) Statutory lcence # $%%erent %ro&

collect'e lcen#n! o% copyr!"t +ecau#e un$er collect'e lcen#n! copyr!"t o,ner# &ay

!'e $rect per#on to a copyr!"t #ocety to lcence t"er ,or*# %or royalte# +ut a# t #

an e1erc#e o% t"e o,ner# r!"t#( t"# # not a #tatutory lcence) Statutory lcence# aree%%cent +ecau#e t"ey $o not re


18/37

@' T"e ar+tral a,ar$# nee$ not +e &a$e nto a .Rule o% Court0) T"e a,ar$# are e1ecuta+lea# % t"ey are $ecree# o% a Court #u+/ect to t"e pro'#on# o% t"e Act on appeal#)@' Pro'#on# "a'e +een &a$e %or en%orce&ent o% %ore!n a,ar$# un$er Part II o% t"e Act)@' Un$er Part III o% t"e Act( %or t"e %r#t t&e conclaton "a# +een reco!n#e$ a# a le!ally'al$ &et"o$ o% alternat'e $#pute re#oluton)

@' T"e appont&ent o% ar+trator# +y a Court "a# +een #&pl%e$)@1 T"e Ar+traton Act 349=( t"e Ar+traton @Protocol an$ Con'enton Act( 3486 an$ t"eFore!n A,ar$ @Reco!nton an$ En%orce&ent Act( 3453 "a'e +een repeale$ #nce t"e#u+/ect# "a'e +een co'ere$ un$er t"# Act)(


19/37

A# per Entry 38 o% t"e L#t ; III @Concurrent L#t o% t"e II Sc"e$ule( +ot" State an$ CentralGo'ern&ent# can le!#late on ar+traton &atter#)

(


20/37

$recte$ to $e'#e a &o$el ca#e &ana!e&ent %or&ula a# ,ell a# rule# an$ re!ulaton#( ,"c"

#"oul$ +e %ollo,e$ ,"le ta*n! recour#e to alternat'e $#pute re$re##al re%erre$ to n

Secton >4 o% CPC) All t"e#e e%%ort# are a&e$ at #ecurn! t"e 'alua+le r!"t to #pee$y tral to

t"e lt!ant#)8

ADR ,a# at one pont o% t&e con#$ere$ to +e a 'oluntary act on t"e apart o% t"e parte#

,"c" "a# o+tane$ #tatutory reco!nton n ter o% Civil Procedure Code (Amendment)

Act, 1! Ar"itration and Conciliation Act, 1#! $e%al Services Aut&orities Act, 1'

and $e%al Services Aut&orities (Amendment) Act, 22) T"e acce## to /u#tce # a "u&an

r!"t an$ %ar tral # al#o a "u&an r!"t) In In$a( t # a Con#ttutonal o+l!aton n ter o%

Art)39 an$ 73) Recour#e to ADR a# a &ean# to "a'e acce## to /u#tce &ay( t"ere%ore( "a'e to

+e con#$ere$ a# a "u&an r!"t pro+le&) Con#$ere$ n t"at conte1t t"e /u$cary ,ll "a'e an

&portant role to play)9

CONTRACT ACT

F1 t"e $ate o% appearance +e%ore #uc" %oru& or aut"orty a# opte$ +y parte#)Accor$n! to Secton 7 @3 @+ o% t"e Ar+traton an$ Conclaton Act( 3445 an .ar+tratona!ree&ent0 &ean# an a!ree&ent re%erre$ to n Secton 6 o% t"e Act)Accor$n! to Secton 6@3@C"apter;II o% t"e Ar+traton an$ Conclaton Act( 3445( anar+traton a!ree&ent &ean# an a!ree&ent +y t"e parte# to #u+&t to ar+traton all orcertan $#pute# ,"c" "a'e ar#en or ,"c" &ay ar#e +et,een t"e& n re#pect o% a $e%ne$le!al relaton#"p( ,"et"er contractual or not)Furt"er( accor$n! to Secton 6@7 o% t"e Act( an ar+traton a!ree&ent &ay +e n t"e %or& o%an ar+traton clau#e n a contract or n t"e %or& o% a #eparate a!ree&ent)

Un$er Secton 6@8 o% t"e Act( t"e a!ree&ent #"all +e n ,rtn!)Un$er #ecton 6@9 t"e ter& ,rtn! # e1plane$) Accor$n!ly( an ar+traton a!ree&ent #n ,rtn! % t # contane$ nB ;@a a $ocu&ent #!ne$ +y t"e parte#@+ an e1c"an!e o% letter#( tele1( tele!ra or ot"er &ean# o% teleco&&uncaton ,"c"

pro'$e a recor$ o% t"e a!ree&ent or@c an e1c"an!e o% #tate&ent# o% cla& an$ $e%ence n ,"c" t"e e1#tence o% t"e a!ree&ent #alle!e$ +y one party an$ not $ene$ +y t"e ot"er)Un$er Secton 6@: o% t"e Act( t"e re%erence n a contract to a $ocu&ent contann! anar+traton clau#e con#ttute# an ar+traton a!ree&ent % t"e contract # n ,rtn! an$ t"ere%erence # #uc" a# to &a*e t"at ar+traton clau#e part o% t"e contract)

ESSENTIA: IN;REDIENTS O+ ARBITRATION A;REEMENT$A# per t"e a%ore&entone$ $e%nton( an ar+traton a!ree&ent &u#t +e n ,rtn! n,"ate'er %or& t &ay +e) T"# $e%nton un$er Secton 6 o% t"e Act re#e&+le# t"e $e%nton#tate$ n t"e Ne, Yor* an$ ene'a Con'enton#)Accro$n! to #ecton 7@" o% t"e Act an a!ree&ent en%orcea+le +y la, # contract)T"e #ecton 3= !'e# t"o#e e##ental ele&ent# ,"c" ,oul$ &a*e an a!ree&ent en%orcea+le)Secton 3= o% t"e Act $e%ne# ,"at a!ree&ent# are contract#) Accor$n! to #ecton 3= alla!ree&ent# are contract# % t"ey are &a$e +y

3

4


21/37

a Free con#ent+ Parte# co&petent to contractc La,%ul con#$eraton$ La,%ul o+/ecte Not $eclare$ to +e 'o$)

The S%preme Co%rt of Ini!, in >$>$ Moi vs$ >$M$ Moi,# la$ $o,n t"e e##entaln!re$ent# o% ar+traton a!ree&ent a# %ollo,#B@ T"e a!ree&ent &u#t co&ply ,t" t"e re SCC 79 $ec$e$ "el$ a# Conclaton # anon;a$/u$catory ADR proce##( ,"c" # al#o !o'erne$ +y t"e pro'#on# o% AKC Act) T"erecan +e a 'al$ re%erence to conclaton only % +ot" parte# to t"e $#pute a!ree to "a'ene!otaton# ,t" t"e "elp o% a t"r$ party or t"r$ parte# et"er +y an a!ree&ent or +y t"e

proce## o% n'taton an$ acceptance a# pro'$e$ n Secton 57 o% t"e AKC Act %ollo,e$ +yappont&ent o% conclator # a# pro'$e$ n Secton 59 o% AKC Act) I% +ot" parte# $o nota!ree %or conclaton( t"ere can +e no conclaton) A# a con#e


22/37

T"e ot"er party &u#t accept t"# n'taton n ,rtn!) Conclaton procee$n!# co&&ence on #uc",rtten acceptance Secton 57@7)("* Effe"t of re&e"tion of invit!tion

I% t"e ot"er party re/ect# t"e n'taton to conclate( t"ere ,ll +e no conclaton procee$n!# Secton57@8)(* Effe"t of silen"e to invit!tion

I% t"e party ntatn! conclaton $oe# not rece'e a reply ,t"n t"rty $ay# %ro& t"e $ate on ,"c""e #en$# t"e n'taton( or ,t"n #uc" ot"er pero$ o% t&e a# #pec%e$ n t"e n'taton( "e &ay electto treat t"# a# a re/ecton o% t"e n'taton to conclate an$ % "e #o elect#( "e #"all n%or& n ,rtn!t"e #a&e to t"e ot"er party Secton 57@9)S-BMISSION O+ STATEMENTS

6$# Appointment of "on"ili!tors

Secton 58 a$'ocate# t"at t"ere can +e one( t,o or t"ree conclator# to #ettle a $#pute #u+/ect to t"ea!ree&ent o% t"e parte# an$ ,"ere &ore t"an one conclator # apponte$ t"ey &u#t act /ontly a# a!eneral rule)Secton 59 contan# pro'#on# on t"e appont&ent o% conclator#)S%4mission of st!tements

n conclaton al#o #u+#on o% ,rtten #tate&ent # re


23/37

Secton# 68 an$ 69 o% t"e Act contan t"e rele'ant pro'#on# on t"# #u+/ect) Un$er t"e Ar+tratonan$ Conclaton Act( 3445 t"e #ettle&ent a!ree&ent aut"entcate$ +y t"e conclator attan# t"e #tatu#o% a $ecree o% t"e Court)

St!t%s !n effe"t

Un$er Secton 69 o% t"e Act( t"e #ettle&ent a!ree&ent #"all "a'e t"e #a&e #tatu# an$ e%%ect a# % t #an ar+tral a,ar$ on a!ree$ ter on t"e #u+#tance o% t"e $#pute ren$ere$ +y an ar+tral tr+unalun$er Secton 8= o% t"e Act)TERMINATION O+ CONCI:IATION PROCEEDIN;S

#0$# Secton 65 o% t"e Act contan# t"e rele'ant pro'#on# on ter&naton o% conclatonprocee$n!#)

APPOINTMENT O+ ARBITRATORS

Section 2(1)(d) of the Act defines an arbitral tribunal as: Arbitral tribunal means asole arbitrator or a panel of arbitrators.Under section 1 of the Arbitration and !onciliation Act" 1##$" the parties are free todetermine the number of arbitrators but such number shall not be an e%en number.

Al&a's the number should be an odd number. o&e%er if there is no specificreference to the number" the tribunal shall consist of a sole arbitrator as stated undersection 1(2) of the Act.In Narayan Prasad Lo!a "s. N!#$n% &$'ar Lo!a and o()rs1

he Supreme !ourt held that: &here the parties appointed t&o arbitrators it doesnot mean that the a*reement itself becomes in%alid. +n such a situation the t&oarbitrators should under section 11(,) appoint a third arbitrator to act as presidin*arbitrator and the appointment of the third arbitrator should preferabl' made at thebe*innin*. the Supreme !ourt further held that unless the ob-ection is made beforethe arbitral tribunal itself &ithin the time prescribed under section 1$(2) of the

Arbitration and !onciliation Act" 1##$" there &ould be a deemed &ai%er undersection of the Act.Section of the Act reads as follo&s:

A part' &ho /no&s that 0

(a) an' pro%ision of this art from &hich the parties ma' dero*ate or(b) an' re3uirement under the arbitration a*reement" has not been complied &ithand 'et proceeds &ith the arbitration &ithout statin* his ob-ection to such non0compliance &ithout undue dela' or" if a time limit is pro%ided for statin* thatob-ection" &ithin that period of time" shall be deemed to ha%e &ai%ed his ri*ht to soob-ect.*. ELI+IBILIT, -UALIFICATIONS AND APPOINTENT OF ARBITRATORS

As pro%ided under Section 11(1) of the Arbitration and !onciliation Act" 1##$" theparties are free to appoint a person of an' nationalit' as an arbitrator.he parties are basicall' free to a*ree on a procedure for appointin* an arbitrator ora panel of arbitrators 4Section 11(2)5.+f the parties do not specif' the number in their a*reement" the reference shall be toa sole arbitrator and if there are no consensus on the selection of the arbitrator" an'part' can mo%e the !hief 6ustice of the appropriate i*h !ourt for appointment ofthe arbitrator if it is a matter of domestic arbitration and the !hief 6ustice of +ndia" if itis a matter of international commercial arbitration.Under Section 11(,) of the Act" if the parties do not specificall' la' the procedurefor appointin* a panel of arbitrators" in an arbitration &ith three arbitrators" each part'shall appoint one arbitrator" and the t&o appointed arbitrators shall appoint the thirdarbitrator &ho shall act as the presidin* arbitrator.


24/37

Pro/)d$r) or ao!n(')n( o ar2!(ra(ors 2y () C!) 3$s(!/) o () H!4Co$r(s !n do')s(!/ ar2!(ra(!on.As pro%ided under Section 11(1) and 11(2)" the parties are basicall' at full libert' toa*ree on the 3ualifications" eli*ibilit' criteria" nationalit' etc." to appoint arbitrators. +fthe a*reement is silent or if one of the parties do not a*ree on the choice of the other

part' or silent to the notice of the other part' to appoint arbitrator(s)" or there is adifference of opinion and conflict on the choice of presidin* arbitrator" the procedureas laid under Section 11() to 11(12) shall be follo&ed b' the parties. hesepro%isions enable the !hief 6ustice of i*h !ourts and the !hief 6ustice of +ndia asthe case ma' be to appoint arbitrators. !hief 6ustice of i*h !ourt of a State isempo&ered to appoint arbitrator(s) in case of domestic arbitration.

+n case the appointment procedure as laid under Section 11(,) applies on theappointment of a panel of three arbitrators and a part' fails to appoint an arbitrator&ithin thirt' da's from the receipt of a re3uest to do so from the other part' or thet&o appointed arbitrators fail to a*ree on the third arbitrator &ithin thirt' da's from

the date of their appointment" the appointment shall be made upon re3uest of a part'b' the !hief 6ustice or an' person or institution desi*nated b' him 4Section 11()5.

+f the parties failed to a*ree as pro%ided under Section 11(2) of the Act" in anarbitration &ith a sole arbitrator if the parties fail to a*ree on the arbitrator &ithinthirt' da's from receipt of a re3uest b' one part' from the other part' to so a*ree"the appointment shall be made upon re3uest of a part'" b' the !hief 6ustice or an'person or institution desi*nated b' him 4Section 11(7)5.

As pro%ided under section 11(2) read &ith Section 11 ($) of the Act" &here under anappointment procedure a*reed upon b' the parties: (a) a part' fails to act asre3uired under that procedure: (b) or the parties" or the t&o appointed arbitrators" failto reach an a*reement e8pected of them under the procedure (c) or a person"includin* an institution" fails to perform an' function entrusted to him or it under theprocedure" a part' ma' re3uest the !hief 6ustice or an' person or institutiondesi*nated b' him to ta/e the necessar' measure" unless the a*reement on theappointment procedure pro%ides other means for securin* the appointment.

F!na5!(y o () d)/!s!on o C!) 3$s(!/).As pro%ided under section 11(9) of the Act" a decision on a matter entrusted undersection 11() or Section 11(7) or Section 11($) to the !hief 6ustice or the person or

institution desi*nated b' him is final.e*ardin* the finalit' of the decision of the !hief 6ustice" earlier there &as acontro%ers' as to the a%ailabilit' of appellate -urisdiction o%er such decisions and themaintainabilit' of S; before the Supreme !ourt. T) S$r)') Co$r( !n &on#anRa!5ay Corora(!on L(d. and ano()r "s. Ran! Cons(r$/(!on P"(. L(d. *held asfollo&s:Section 11 of the Act deals &ith the appointment of arbitrators. +t pro%ides that theparties are free to a*ree on a procedure for appointin* an arbitrator or arbitrators. +nthe e%ent of there bein* no a*reement in re*ard to such procedure" in anarbitration b' three arbitrators each part' is re3uired to appoint one arbitrator and thet&o arbitrators so appointed must appoint the third arbitrator. +f a part' fails to

appoint an arbitrator &ithin thirt' da's from the re3uest to do so b' the other part' orthe t&o arbitrators appointed b' the parties fail to a*ree on a third arbitrator &ithin


25/37

thirt' da's of their appointment" a part' ma' re3uest the !hief 6ustice to nominatean arbitrator and the nomination shall be made b' the !hief 6ustice or an' person orinstitution desi*nated b' him. +f the parties ha%e not a*reed on a procedure forappointin* an arbitrator in an arbitration &ith a sole arbitrator and the parties fail toa*ree on an arbitrator &ithin thirt' da's from receipt of a re3uest to one part' b' the

other part'" the nomination shall be made on the re3uest of a part' b' the !hief6ustice or his desi*nate.


26/37

+t mi*ht also be that in a *i%en case the !hief 6ustice or his desi*nate ma' ha%enominated an arbitrator althou*h the period of thirt' da's had not e8pired. +f so" theArbitral ribunal &ould ha%e been improperl' constituted and be &ithout -urisdiction.+t &ould then be open to the a**rie%ed part' to re3uire the Arbitral ribunal to rule onits -urisdiction. Section 1$ pro%ides for this. +t states that the Arbitral ribunal ma'

rule on its o&n -urisdiction. hat the Arbitral ribunal ma' rule on an' ob-ections&ith respect to the e8istence or %alidit' of the arbitration a*reement" sho&s that theArbitral ribunals authorit' under Section 1$ is not confined to the &idth of is-urisdiction" as &as submitted b' learned counsel for the appellants" but *oes to the%er' root of its -urisdiction. here &ould" therefore" be no impediment in contendin*before the Arbitral ribunal that it had been &ron*l' constituted b' reason of the factthat the !hief 6ustice or his desi*nate had nominated an arbitrator althou*h theperiod of thirt' da's had not e8pired and that" therefore" it had no -urisdiction.

he schemes made b' the !hief 6ustices under Section 11 cannot *o%ern theinterpretation of Section 11. +f the schemes" as dra&n" *o be'ond the terms of

Section 11 the' are bad and ha%e to be amended. o the e8tent that theappointment of Arbitrators b' the !hief 6ustice of +ndia Scheme" 1##$" *oes be'ondSection 11 b' re3uirin*" in clause 9" the ser%ice of a notice upon the other part' tothe arbitration a*reement to sho& cause &h' the nomination of an arbitrator" asre3uested" should not be made" it is bad and must be amended. he other part'needs to be *i%en notice of the re3uest onl' so that it ma' /no& of it and it ma'" if itso chooses" assist the !hief 6ustice or his desi*nate in the nomination of anarbitrator.

+n conclusion" &e hold that the order of the !hief 6ustice or his desi*nate underSection 11 nominatin* an arbitrator is not an ad-udicator' order and the !hief6ustice or his desi*nate is not a tribunal. Such an order cannot properl' be madethe sub-ect of a petition for special lea%e to appeal under Article 1,$. he decision ofthe three06ud*e =ench in &on#an Ra!5ay Corora(!on L(d. ". )$5Cons(r$/(!on Co.7!s a!r')d.So as per this decision the order of the !hief 6ustice is onl' an administrati%e orderand is not appealable.his decision of the !onstitutional =ench of the Supreme !ourt in >on/an ail&a'!orpn. ;td." and another ?s. ani !onstruction %t. ;td." @(2) S!! 17#B &aso%erruled b' the decision of a ;ar*er =ench of Supreme !ourt in S.=.. C !o." ?s.atel Dn*ineerin* ;td." and another 427 (9) Supreme $15. he decision earlier

stated in >on/an ail&a' !orporation ;td." case &as totall' reconsidered and adifferent %ie& &as laid b' the Supreme !ourt in this decision in S= C !o. heSupreme !ourt held as follo&s:

i) he po&er e8ercised b' the !hief 6ustice of the i*h !ourt or the!hief 6ustice of +ndia under section 11($) of the Act is not anadministrati%e po&er. +t is a -udicial po&er.

ii) he po&er under section 11($) of the Act" in its entiret'" could bedele*ated" b' the !hief 6ustice of the i*h !ourt onl' to another6ud*e of that !ourt and b' the !hief 6ustice of +ndia to another6ud*e of the Supreme !ourt.


27/37

iii) +n case of desi*nation of a 6ud*e of the i*h !ourt or of theSupreme !ourt" the po&er that is e8ercised b' the desi*nated6ud*e &ould be that of the !hief 6ustice as conferred b' the statute.

i%) he !hief 6ustice or the desi*nated 6ud*e &ill ha%e the ri*ht to

decide the preliminar' aspects as indicated in the earlier part of this-ud*ment. hese &ill be" his o&n -urisdiction" to entertain there3uest" the e8istence of a %alid arbitration a*reement" the e8istenceor other&ise of a li%e claim" the e8istence of the condition for thee8ercise of his po&er and on the 3ualifications of the arbitrator orarbitrators. he !hief 6ustice or the 6ud*e desi*nated &ould beentitled to see/ the opinion of an institution in the matter ofnominatin* an arbitrator 3ualified in terms of Section 11() of the Actif the need arises but the order appointin* the arbitrator could onl'be that of the !hief 6ustice or the 6ud*e desi*nate.

%) Eesi*nation of a Eistrict 6ud*e as the authorit' under section 11($) ofthe Act b' the !hief 6ustice of the i*h !ourt is not &arranted on theScheme of the Act.

%i) Fnce the matter reaches the arbitral tribunal or the sole arbitrator"the i*h !ourt &ould not interfere &ith orders passed b' thearbitrator or the arbitral tribunal durin* the course of the arbitrationproceedin*s and the parties could approach the court onl' in termsof Section ,9 of the Act or in terms of Section , of the Act.

%ii) Since an order passed b' the !hief 6ustice of the i*h !ourt or b'the desi*nated 6ud*e of that !ourt is a -udicial order" an appeal &illlie a*ainst the order onl' under Article 1,$ of the !onstitution of+ndia to the Supreme !ourt (S;).

%iii) here can be no appeal a*ainst an order of the !hief 6ustice of +ndiaor a 6ud*e of the Supreme !ourt desi*nated b' him &hileentertainin* an application under Section 11($) of the Act.

i8) +n a case &here an arbitral tribunal has been constituted b' theparties &ithout ha%in* recourse to Section 11($) of the Act" the

arbitral tribunal &ill ha%e the -urisdiction to decide all matters ascontemplated b' Section 1$ of the Act.

8) Since all &ere *uided b' the decision of this !ourt in >on/an ail&a'!orpn. ;td." C another ?s. ani !onstruction %t. ;td." @(2) S!! 17#B and orders under Section 11($) of the Act ha%e beenmade based on the position adopted in that decision" &e clarif' thatappointments of arbitrators or arbitral tribunals thus far made are tobe treated as %alid" all ob-ections bein* left to be decided underSection 1$ of the Act. As and from this date" the position as adoptedin this 6ud*ment &ill *o%ern e%en pendin* application under section

11($) of the Act.


28/37

8i) >6 9


29/37

*.;.1Hor appointment of arbitrators" the !hief 6ustice ma' ma/e such scheme ashe ma' deem appropriate for dealin* &ith matters entrusted b' Section 11() or11(7) or 11($) to him.

*.;.*


30/37

COMMERCIA: DISP-TES

u#ne## $#pute# o% nternatonal c"aracter ncorporate a $#pute re#oluton clau#e n ca#e o%nternatonal tran#acton#) Internatonal co&&ercal ar+traton "a# +eco&e a ,ay o%re#ol'n! $#pute# ,"c" t"e parte# c"o#e %or t"eel'e#CHOICE O+ :A1

T"e parte# to t"e a!ree&ent &ay n#ert a clau#e ,"c" $e%ne# t"e #y#te& o% la, +y ,"c"t"ey nten$ to +e !o'erne$) Suc" a clau#e #pec%yn! t"e proper la, o% t"e contract # *no,na# c"oce o% la,):E :OCI CONTRACT-S

T"e court "a# to &pute an ntenton or to $eter&ne t"e parte# ,"at # a proper la, ,"c" a#/u#t an$ rea#ona+le per#on# t"ey ou!"t to or ,oul$ "a'e nten$e$ % t"ey "a$ t"ou!"t a+outt"e 67B;@a Co&petency o% t"e parte# un$er Secton# 33 an$ 37@+ Mutual con#ent o% t"e parte# un$er Secton# 38 to 77@c A# to la,%ulne## o% #u+/ect# un$er Secton# 78 to 76 an$ 8=@$ Certanty o% a!ree&ent un$er Secton 74unle## t"e parte# are co&petent to $eal ,t" t"e #u+/ect# a# re


31/37

per#on $#67) T"e aut"orty

can +e &ple$ or e1pre##)(e* Tr%stees

Un$er #ecton 98 o% t"e In$an Tru#t# Act( 3>>7( t"e Tru#tee# can re%er a $#pute connecte$ tot"e Tru#t to ar+traton)(f* Artifi"i!l Persons

?ur$cal per#on# l*e co&pane#( #ocete# can enter nto ar+traton a!ree&ent# #u+/ect tot"e content# o% t"e Me&oran$u& o% A##ocaton( Artcle# o% A##ocaton an$ t"e +ye;la,# %any)(g* +irms

T"e po#ton o% t"e partner# # #a&e a# o% t"e tru#tee#) T"e partner# are +oun$ +y t"ear+traton clau#e n t"e partner#"p $ee$) Sa&e # t"e ca#e n co&&ercal contract# o% t"e

%r&)(h* ;overnment Contr!"ts

All Go'ern&ent Contract# &u#t +e #!ne$ on +e"al% o% t"e Pre#$ent o% In$a orGo'ernor o% t"e State concerne$ a# t"e ca#e &ay +e a# pro'$e$ un$er Artcle 744 o% t"eCon#ttuton o% In$a) Any 'olaton o% t"# pro'#on auto&atcally n'al$ate# t"e contract)The S%preme Co%rt in P$ An!n ;!&!p!thi vs$ P$?$;$ R!&%"el$ t"at e'en at appellate#ta!e( t"e parte# can pre%er to #ettle t"e $#pute +y ar+traton)Secton 7> o% t"e In$an Contract Act $e%ne# t"e a!ree&ent# n re#trant o% le!al procee$n!#'o$) T"e #ecton pro"+t# a!ree&ent# ,"c" "a'e %or t"er o+/ect t"e re#trann! o% ann$'$ual %ro& en/oyn! t"e %un$a&ental r!"t o% re#ortn! to a courr o% la, %or re$re## an$rele%)T"e e1cepton# are nten$e$ to #a'e contract# to re%er to ar+traton pre#ent or %uture $#pute#)T"e a!ree&ent ,"ere+y a tra&,ay e&ployee a!ree$ t"at t"e cert%cate o% an ar+trator #"all

+e %nal a# to t"e co&pany# r!"t to retan "# $epo#t ,a# up"el$ n AGHORENATH 'CALCUTTA TRAM2AYS)In Gan!e# Manu%acturn! co&pany n$ra a contract pro'$n! t"at $%%erence# #"oul$ +ere%erre$ to t"e ar+traton o% t"e en!al c"a&+er o% co&&erce ,a# "el$ en%orcea+le)T"e e1cepton apple# only to t"at cla## o% contract# n ,"c" t"e parte# "a'e a!ree$ t"at noacton #"all +e +rou!"t untl #o&e


32/37

73#t?une 34>:) T"e &o$el la, # not +n$n!( +ut n$'$ual #tate# &ay a$opt t"e &o$el la,

+y ncorporatn! t nto t"er $o&e#tc la,)

UNCITRAL Mo$el La, on Internatonal Co&&ercal Ar+traton pro'$e# ,t" t"e recept o%,rtten co&&uncaton#) Unle## a!ree$ +y t"e parte# t"at t"e recept "a# +een $el'ere$ +y

%ollo,n! proper &anner t"e co&&uncaton # $ee&e$ to "a'e +een rece'e$ on t"e $ay t ##o rece'e$) T"e co&&uncaton # $ee&e$ to "a'e +een rece'e$ on t"e $ay t # #o rece'e$)T"# # not apple$ to co&&uncaton# n court procee$n!#)A party ,"o *no,# t"at any pro'#on o% t"# La, %ro& ,"c" t"e parte# &ay $ero!ate orany re


33/37

7) Faln! any $e#!naton +y t"e parte#( t"e ar+tral tr+unal #"all apply t"e la, $eter&ne$+y t"e con%lct o% la,# rule#)

8) T"e ar+tral tr+unal #"all $ec$e e( ae'uo et )onoor a# a&a+le compositeuronly % t"eparte# "a'e e1pre##ly aut"or-e$ t to $o #o)

9) t"e ar+tral tr+unal #"all $ec$e n accor$ance ,t" t"e ter o% t"e contract an$ #"all

ta*e nto account t"e u#a!e# o% t"e tra$e applca+le to t"e tran#acton)It #tate# t"at n ar+tral procee$n!# t"e $ec#on # to +e ta*en +y a panel o% ar+trator# % t"e

parte# a!ree to t)UNCITRAL Mo$el La, on Internatonal Co&&ercal Ar+traton $eal# ,t" t"e pro'#on o%#ettle&ent o% $#pute#)It pre#ent# ,t" t"e %or an$ content# o% t"e a,ar$) UNCITRAL Mo$el La, onInternatonal Co&&ercal Ar+traton $eal# ,t" t"e pro'#on ,"en t"e ar+tral procee$n!#can +e ter&nate$ +y t"e ar+tral tr+unal)UNCITRAL Mo$el La, on Internatonal Co&&ercal Ar+traton #tate# t"at % t"ere # anyerror n t"e a,ar$ t"en ,t"n t"rty $ay# o% t"e recept o% t"e a,ar$ a party "a# to #en$ are


34/37

AD?ANRA;ES AND DISAD?ANTA;ES O+ ADR MECHANISM

Alternat'e D#pute Re#oluton # +a#e$ on &ore $rect partcpaton +y t"e $#putant# rat"er

t"an +en! run +y la,yer# an$ ?u$!e#) Mo#t ADR proce##e# are +a#e$ on an nte!rat'eapproac"( &o#t co;operat'e an$ le## co&pett'e t"an court +a#e$ &et"o$# l*e lt!aton)ADR ten$# to !enerate le## e#calaton an$ ll;,ll +et,een parte#) Follo,n! are t"ea$'anta!e# o% ADRB

3) It can +e u#e$ at any t&e( e'en ,"en a ca#e # pen$n! +e%ore a Court o% La,)7) It can +e u#e$ to re$uce t"e nu&+er o% contentou# ##ue# +et,een t"e parte# an$ t can

+e ter&nate$ at any #ta!e +y any o% t"e $#putn! parte#)8) It can pro'$e a +etter #oluton to $#pute &ore e1pe$tou#ly an$ at le## co#t t"an

re!ular lt!aton)9) It "elp# n *eepn! t"e $#pute a pr'ate &atter an$ pro&ote# creat'e an$ real#tc

+u#ne## #oluton#):) T"e ADR # %le1+le an$ not !o'erne$ +y t"e r!orou# o% rule# or proce$ure#)5) T"e %ree$o& o% parte# to lt!aton # not a%%ecte$ +y ADR procee$n!#) E'en a %ale$

ADR procee$n! # ne'er a ,a#te et"er n ter o% &oney or t&e# #pent on t(6) T"e ADR can +e u#e$ ,t" or ,t"out a la,yer) A la,yer "o,e'er( play# a 'ery u#e%ul

role n $ent%caton o% contentou# ##ue#( po#ton o% #tron! an$ ,ea* pont# n a ca#e(ren$ern! a$'ce $urn! ne!otaton# an$ o'erall pre#entaton o% "# clent# ca#e)

>) ADR "elp# n re$ucton o% ,or* loa$ o% court# an$ t"ere+y "elp# t"e& to %ocu#attenton on ot"er ca#e#)

4) T"e ADR proce$ure per&t# to c"oo#e neutral# ,"o are #pecal#t# n t"e #u+/ect;&attero% t"e $#pute)

3=) T"e parte# are %ree to $#cu## t"er $%%erence o% opnon ,t"out any %ear o% $#clo#ureo% %act# +e%ore a Court o% La,)

33) T"e la#t +ut not t"e lea#t # t"e %act t"at parte# are "a'n! t"e %eeln! t"at t"ere # nolo#n! or ,nnn! %eeln! a&on! t"e parte# +y at t"e #a&e t&e t"ey are "a'n! t"e%eeln! t"at t"er !re'ance # re$re##e$ an$ t"e relaton#"p +et,een t"e parte# #re#tore$)

37) T"e ADR #y#te& # apt to &a*e a +etter %uture) It pa'e# t"e ,ay to %urt"er pro!re##)

*isadvantages:

T"ere are #o&e ADR $oe# not "a'e &any potental a$'anta!e#( +ut t"ere are al#o #o&e

po##+le $ra,+ac*# an$ crtc# o% pur#un! alternat'e# to court;+a#e$ a$/u$caton) So&ecrtc# "a'e concern# a+out t"e le!t&acy o% ADR outco&e#( c"ar!n! t"at ADR pro'$e#.#econ$;cla## /u#tce)0 It # ar!ue$ t"at people ,"o cannot a%%or$ to !o to t"e court are t"o#e&o#t l*ely to u#e ADR proce$ure#) A# a re#ult( t"e#e people are le## l*ely to truly .,n0 aca#e +ecau#e o% t"e co;operat'e nature o% ADR)5Follo,n! pont# &ay +e $ealt a# #o&e o%t"e $#a$'anta!e# o% ADR6B

6

7


35/37

3) Stuaton# ,"en ADR &ay not +e approprate( an$ &ay e'en carry a $e!ree o% r#* %or oneo% t"e parte#) It # &portant %or t"e a$'#er# to u#e t"er pro%e##onal /u$!e&ent n eac"ca#e( +ut t"# #ecton outlne# *ey %actor# %or con#$eraton)

7) T"ere &ay +e an &+alance o% po,er +et,een t"e parte#( ,"c" coul$ &a*e %ace;to;%ace&e$aton un%ar) T"# coul$ nclu$e %a&ly or ne!"+our &e$aton ,"ere t"ere "a# +een

'olence or t"e t"reat o% 'olence or &e$aton +et,een an n$'$ual an$ a lar!eor!an#aton #uc" a# a local aut"orty( ,"ere t"e #-e an$ re#ource# o% t"e or!an-aton,oul$ put t"e n$'$ual at a $#a$'anta!e)

8) T"ere &ay +e an ur!ent nee$ @%or e1a&ple to pre'ent e'cton ,"c" re

8


36/37

Furt"er( t"e recent a&en$&ent# o% t"e C'l Proce$ure Co$e ,ll !'e a +oo#t to ADR)

Secton >4 @3 o% CPC $eal# ,t" t"e #ettle&ent o% $#pute# out#$e t"e court) It pro'$e# t"at

,"ere t appear# to t"e court t"at t"ere e1#t ele&ent#( ,"c" &ay +e accepta+le to t"e parte#(

t"e court &ay %or&ulate t"e ter o% a po##+le #ettle&ent an$ re%er t"e #a&e %or ar+traton(

conclaton( &e$aton or /u$cal #ettle&ent)

4

2"le up"ol$n! t"e 'al$ty o% t"e CPCa&en$&ent# n Salem Advocate Bar Association, Tamil Nadu v. U.O.I,1t"e Supre&e Court

"a$ $recte$ t"e con#ttuton o% an e1pert co&&ttee to %or&ulate t"e &anner n ,"c" #ecton

>4 an$ ot"er pro'#on# ntro$uce$ n CPC "a'e to +e +rou!"t nto operaton) T"e Court al#o

$recte$ to $e'#e a &o$el ca#e &ana!e&ent %or&ula a# ,ell a# rule# an$ re!ulaton#( ,"c"

#"oul$ +e %ollo,e$ ,"le ta*n! recour#e to alternat'e $#pute re$re##al re%erre$ to n

Secton >4 o% CPC) All t"e#e e%%ort# are a&e$ at #ecurn! t"e 'alua+le r!"t to #pee$y tral to

t"e lt!ant#)33

ADR ,a# at one pont o% t&e con#$ere$ to +e a 'oluntary act on t"e apart o% t"e parte#

,"c" "a# o+tane$ #tatutory reco!nton n ter o% Civil Procedure Code (Amendment)Act, 1! Ar"itration and Conciliation Act, 1#! $e%al Services Aut&orities Act, 1'

and $e%al Services Aut&orities (Amendment) Act, 22) T"e acce## to /u#tce # a "u&an

r!"t an$ %ar tral # al#o a "u&an r!"t) In In$a( t # a Con#ttutonal o+l!aton n ter o%

Art)39 an$ 73) Recour#e to ADR a# a &ean# to "a'e acce## to /u#tce &ay( t"ere%ore( "a'e to

+e con#$ere$ a# a "u&an r!"t pro+le&) Con#$ere$ n t"at conte1t t"e /u$cary ,ll "a'e an

&portant role to play)37

T"e Supre&e Court o% In$a "a# al#o #u!!e#te$ &a*n! ADR a# a part o% a pac*a!e #y#te&

$e#!ne$ to &eet t"e nee$# o% t"e con#u&er# o% /u#tce) T"e pre##ure on t"e /u$cary $ue tolar!e nu&+er o% pen$n! ca#e# "a# al,ay# +een a &atter o% concern a# t"at +en! an o+'ou#

cau#e o% $elay) T"e culture o% e#ta+l#"&ent o% #pecal court# an$ tr+unal# "a# +een ponte$

out +y t"e Hon+le Supre&e Court o% In$a n nu&+er o% ca#e#) T"e ratonale %or #uc" an

e#ta+l#"&ent o#ten#+ly ,a# #pee$y an$ e%%cacou# $#po#al o% certan type# o% o%%ence#)

I$ MEANIN; AND DE+INITION O+ A:TERNATI?E DISP-TE RESO:-TION

Hu&an con%lct# are ne'ta+le) D#pute# are e


37/37

co#t +ot" n ter o% &oney an$ t&e( #o t"at &ore t&e an$ &ore re#ource# are #pare$ %or

con#truct'e pur#ut#)

KAltern!tive Disp%te Resol%tionL or ADR # an atte&pt to $e'#e a &ac"nery ,"c" #"oul$

+e capa+le o% pro'$n! an alternat'e to t"e con'entonal &et"o$# o% re#ol'n! $#pute#) An

alternat'e &ean# t"e pr'le!e o% c"oo#n! one o% t,o t"n!# or cour#e# o%%ere$ at one#c"oce) It $oe# not &ean t"e c"oce o% an alternat'e court +ut #o&et"n! ,"c" # an

alternat'e to court proce$ure# or #o&et"n! ,"c" can operate a# court anne1e$ proce$ure)38

Carro, $e%ne$ .Alternat'e D#pute Re#oluton a# nclu$n! +n$n! ar+traton n t"e &n$#

o% #o&e #nce t

Documents

Law of Ontracts Relating to Ipr, Adr and Cyber Law -Llm Pgcl 3rd Sem Notes