Arbitration Clause & Post Decree Disputes – Bombay HC Draws Line
The subject matter of disputes in Special Civil Suit No.1084 of 2021 filed by Dhariwals were settled. The said consent terms were accepted by the Court and converted into consent decree vide order dated 30.12.2021.
Clause 19 of the Consent Terms provided for an arbitration clause.
The Execution Application was filed for execution of the consent decree requiring Sky One to pay additional sum of Rs.24 crores payable within a year of consent terms being executed.
Sky One filed WS in the Execution Petition.
Thereafter, on 12.12.2023, section 8 application was filed for reference of disputes to arbitration.
However, the Executing Court rejecting the said application on the ground that it was filed after filing of the WS / Reply to the Execution Petition.
HELD that there is no adjudicatory proceedings possible in competition with the arbitration proceedings when execution of a clear and admitted payment obligation is involved.
Section 8 would have no scope for operation in case of proceedings to execute a decree.
Execution Petition covers enforcement of admitted and decreed debt of Rs.24 crores arising out of the consent decree which is amenable only to execution proceedings, would not be capable of fresh arbitration.
Judgment dated 16.9.2025 of the High Court of Bombay in Arbitration Petition No.146 of 024 of M/s Sky One Corporate Park LLP and others Vs. Shobha Rasiklal Dhariwal and another

