A third of Internet users are victims of cyber frauds

 Indian banks have suffered a loss of Rs. 6,600 crore through cyber frauds during January-August period 2012, according to Internet security solutions firm Norton.

The losses are going up significantly. “The losses suffered by the banks have gone up by 88 per cent over the comparable period,” David Hall, Product Marketing (Asia-Pacific) of Norton, has said, quoting an E&Y fraud report.

The losses suffered by individual users are much more. Nearly one-third of all the 13.7 crore Internet users have become victims of cyber crime. “The average cost per user (in terms of loss, clean-up costs) is put at Rs. 10,000 per victim, adding up to Rs. 42,000 crore,” he said.

Talking on the growing incidence of cyber crime and identity thefts here, he referred to the cyber attack on a pizza chain in India that had left details about 37,000 users exposed. “About 15,000 Web sites were defaced and 712 security incidents reported, with 44 per cent of them being phishing (similar looking Web sites),” he said.

He was here to launch security solutions for mobile devices and Norton 360, the multi-platform multi-device product.

David Hall said the firm has noticed that 1.15 lakh victims fell prey for some kind of cyber crime every day, taking the annualised number to 4.2 crore. The spread of social media was making matters worse.

“Users do not care to log out from their accounts after a session. A good number of them are not aware of profile settings that can help them in restricting access to their accounts,” he said.

(This article was published on November 27, 2012, The Business Line). 

Cyber crime costs world economy up to $500 b/year

Cyber crime costs the global economy between a whopping $100 billion and $500 billion annually, according to a first-of-its-kind report quantifying the economic impact of malicious cyber activity.

The research by the security firm McAfee and the Center for Strategic and International Studies (CSIS) also posits a $100 billion annual loss to the US economy and as many as 508,000 US jobs lost as a result of cyber crime.

Cyber crime costs world economy up to $500 b/year

Choice of arbitrators must be wider

Brief case:/b Choice of arbitrators must be wider:

Choice of arbitrators must be wider 

The independence and impartiality of arbitrators have been a contentious issue between feuding parties for long. This is even more intense when the government or its entities make the opposite party sign agreements, in which the arbitrators would be their own officers. Two years ago, the Arbitration and Conciliation Act was amended to quell such preliminary disputes so that arbitration gets going. The Act now contains lists of persons who are ineligible to be arbitrators, like those who have conflict of interest.  This has not totally stopped litigation over choice of arbitrators, as shown by the long judgment of the Supreme Court in the case, Voestalpine Schienen GMBH Vs Delhi Metro Corporation. Disputes arose between them over payments for supplying rails. The agreement provided a panel of names chosen by the Metro, from which the Austrian counterpart was to choose. However, the foreign firm argued it had justifiable doubts about the neutrality of the persons, because they were mostly retired engineers and officers of the government or its corporations. The court ruled that merely because they had worked at one time for government entities, they could not be suspected of bias. If the court is convinced that there is likelihood of bias, it can name arbitrators. But, this was not such a case. However, the court found the Metro had offered a small list of five persons. So, it asked the Metro to make the panel broad-based, including experts from the private sector, as well as legal and accountancy personnel. 

Arbitrator is the select judge of Parties , and his decision is ordinarily Final on " Facts and Law"

It is to be noted that an 'Arbitral Tribunal' is the 'Final Arbitrator' of both the questions of 'Fact and Law' referred to it for determination. The decision of the Arbitrator, being the select judge of the parties, is ordinarily final both on 'Facts and Law' and should not be lightly interfered with.

 Likewise, the Review in Court would not be justified to interfere with the Award merely because the views taken by the Arbitrator on the question of fact or law does not accord well within its own views.

 As a matter of fact, the 'Reviewing Court' is to accept the decision an Arbitrator as long as he had acted within jurisdiction in interpreting the provisions of the Contract and had applied the law to his evaluation of the facts. Indeed, the Arbitration and Conciliation Act, 1956 makes provision for the supervisory role of the courts for review of the 'Arbitral Award' only to ensure fairness as per decision McDermott International Inc. V. Burn Standard Co., Ltd., and Others MANU/SC/8177/2006 : (2006) 11 Supreme Court Cases 181. 

It is to be borne in mind that an Arbitrator is the master of 'Facts and Law'. As such, the findings of fact recorded by the 'Arbitral Tribunal' are conclusive and final. It cannot be gainsaid that the finding of fact cannot be assailed on the grounds of admissibility, relevance, materiality and weight of any evidence. In fact, the Arbitration and Conciliation Act, 1996 does not provide for recourse against an 'Arbitral Award' on the facts or for any 'Judicial Review' of the award on its merits. If the Tribunal had jurisdiction, the correct procedures were adhered to, and the correct formalities are observed, the award - good, bad or indifferent is final and binding on the parties. It is not open to a Court of Law to examine the correctness of the award on merits with reference to the materials produced before the Arbitral Tribunal, nor can it re-examine or re-assess the materials on record to see the correctness of the view taken by the Tribunal.

 Furthermore, the jurisdiction of a Court of Law to set aside an Arbitral Award under Section 34 of the Arbitration and Conciliation Act, 1996 is not an Appellate one and added further, it cannot interfere with erroneous on fact either in the absence of perversity. It is restricted to the grounds adumbrated in it, in the considered opinion of this Court. Also that if the award is passed fairly, after providing adequate opportunities to the respective parties to project their points of view in the manner provided by the Arbitration agreement, the Award is not amenable to correction by a Court of Law. 

Also in the decision of Delhi State Industrial & Infrastructure Development Corporation Limited reported in (2014) 3 Arb LR 116 (Delhi) (Division Bench) at Paragraph No. 9, it is observed and held as follows:-- "9. We may further add that the parties, by agreeing to be bound by the arbitral award and by declaring it to be final, agree to be bound also by wrong interpretation or an erroneous application of law by the arbitral tribunal and once the parties have so agreed, they cannot apply for setting aside of the arbitral award on the said ground. Even under the 1940 Act where the scope of interference with the award was much more, the Apex Court in Tarapore and Co., V. Cochin Shipyard Ltd., Cochin, MANU/SC/0002/1984 : (1984) 2 SCC 680 : 1985 Ar.LR 2 (SC) and U.P. State Electricity Board, MANU/SC/0541/1988 : (1989) 1 SCC 359 : 1989 (1) Arb. LR 244 (SC) held that the arbitrator's decision on a question of law is also binding even if erroneous. Similarly, in N. Chellappan V. Secretary, Kerala State Electricity Board, MANU/SC/0002/1974 : (1975) 1 SCC 289, it was held that even if the umpire committed an error of law in granting amount, it cannot be said to be a ground challenging the validity of the award; the mistake may be a mistake of fact of law." However, a Court of Law can set aside the 'Award' only if it is apparent from the award that there is no evidence to support the conclusions or if the award is cemented on any legal view which is latently and patently an erroneous one. If an Arbitrator fails to adjudicate a counter claim and does not consider it, then 'Award' is liable to be set aside in terms of the Arbitration and Conciliation Act, 1996 [26 of 1996]. An 'Arbitrator' is not only required to decide a counter claim but is also required to assail reasons for his decisions. Factors to be Borne in Mind by an Appellate Court 31. When an Appellate Court deals with the 'Award' assailed in an 'Appeal' it is to bear in mind fully the salient factors:-- "(i) A Court of Law cannot substitute its own decision as if sitting in Appeal over the Award. (ii) Ambit of interference that the 'Award' is limited. (iii) A Court of Law is to look into whether there is any negation of the 'Principles of Natural Justice'. (iv) A Court of Law can interfere only if there is an error on the face of the 'Award'. (v) A Court of Law can interfere if an 'Arbitrator' had brushed aside/ignored the relevant clause and the terms of the agreement. (vi) The Award is cemented on a proposition of Law which is erroneous. (vii) An award could not be set aside just because the reasons are spelt out in brief. (viii) Interpretation placed by the Arbitrator ought not be disturbed if it is plausible and not because a Court of Law would have come to a different conclusion. (ix) No interference would be called for when an Arbitrator renders a finding on a particular question of Law when authorised by the concerned parties. (x) A Court of Law should not disturb the 'Findings' of the Arbitrator when based on facts. (xi) There must not be a reappreciation of the evidence by a Court of Law, in as much as the same was considered by an Arbitrator." IN THE HIGH COURT OF MADRAS O.S.A. No. 159 of 2015 Decided On: 01.12.2015 Appellants: Jeypore Sugar Company Ltd. Vs. Respondent: Laxmi Organic Industries Limited and Ors. Hon'ble Judges/Coram:S. Manikumar and M. Venugopal, JJ. Citation:AIR 2016 (NOC)288 Mad http://www.lawweb.in/2016/05/when-court-should-not-set-aside_26.html

Read more at: http://www.lawyersclubindia.com/forum/When-court-should-not-set-aside-arbitration-award--137648.asp

Insolvency Framework Re-defined - IBC 2016

Check the fault in default: Industrialist — and loan defaulter — Vijay Mallya is in the United Kingdom, happy to have dodged, so far, the Indian judiciary. But back home in India, a holistic law is on the anvil that seeks to sternly deal with insolvency and defaulters. The Rajya Sabha recently passed the Insolvency and Bankruptcy Code, 2016, a reform envisioned to ensure time-bound

Forum hunting despicable

Practice of sending letters asking court to recuse itself is despicable: Bombay HC sentences contemnor for 3 months imprisonment.We deprecate this practice of sending such letters, asking the Court to recuse itself. This practice is not only depreciable but is also despicable and needs to be curtailed, the Bench said.

Read more at: http://www.livelaw.in/forum-hunting-despicable-needs-curtailed-bombay-hc-sentences-party-person-contempt-court/?utm_source=dlvr.it&utm_medium=linkedin





Forum hunting despicable: Bombay High Court has sentenced a person for three months imprisonment for Contempt of Court by abusing, insulting, intimidating and threatening

41 more housing finance firms allowed to use SARFAESI law

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