Arbitration – Section 8 – Arbitration clause in tripartite agreements was basis for subsequent agreements challenged in the civil suit
Judgment dated 15.12.2023 in Civil Appeal No.1854 of 2023 of Sushma Shivkumar Daga & Anr Vs. Madhurkumar Ramkrishnaji Bajaj & Ors.
Arbitration – Section 8 – Arbitration clause in tripartite agreements cover dispute in the civil suit – Tripartite agreements was basis for all subsequent agreements which did not contain arbitral clause –
The appellants original plaintiffs filed civil sit in 2021 for declaration that the conveyance deed dated 17.12.2019 is null and void and that five registered development agreements stand validly terminated. The five development agreements find their source in two Tripartite Agreements dated 31.3.2007 and 25.7.2008 which contained arbitration clause.
The respondents – original defendants filed application under Section 8 of the Arbitration Act, 1996, to refer the dispute to arbitration as per the arbitral clause in two tripartite agreements dated 31.3.2007 and 25.7.2008.
By the order dated 13.10.2021, the trial Court allowed the application on the ground that the arbitration clause in tripartite agreements cover the dispute in the civil suit.
The challenge to the said order was dismissed by the High Court vide order dated 10.12.2021.
HELD that the basic purpose of amendment in Sections 8 and 11 of the Arbitration Act in 2015 was to minimise the judicial intervention except where no valid arbitration agreement exists. In the present, the tripartite agreements of 2007 and 2008 which are basis for all subsequent agreements, conveyance, etc. The Civil Appeal was dismissed.
