Legal Reference Library

The Supreme Court in Mrs. Hema Khattar & ANR. Vs. Shiv Khera has held that When an agreement is terminated by one party alleging breach committed by the other, the arbitration clause still survives and continues to be operative. This is particularly so when the contract is revoked by mutual consent and the arbitration clause is framed in general terms. The Supreme Court referred to earlier decisions in Sundaram Finance Limited and Another vs. T. Thankam (2015) 14 SCC 444, where this Court has held as under:- "8. Once there is an agreement between the parties to refer the disputes or differences arising out of the agreement to arbitration, and in case either party, ignoring the terms of the agreement, approaches the civil court and the other party, in terms of Section 8 of the Arbitration Act, moves the court for referring the parties to arbitration before the first statement on the substance of the dispute is filed, in view of the peremptory language of Section 8 of th...

High Court of Bombay Vinod Kumar Saboo v. Sudarshan Vishwanath Malpani and Ors. MANU/MH/0542/2017 03.04.2017 Civil Disputes and liabilities between parties need to be adjudicated, based upon partnership deed Appellant-Original Defendant has filed Appeal and prayed to quash and set aside impugned Judgment passed by Single Judge. In facts of present case, Appellant and Respondents formed and signed a partnership deed and purchased a membership card of NSEI Limited in name of partnership firm i.e."Money Mint". During year 1998-1999, disputes and differences arose between them. On 2nd August, 2000, they signed an arrangement. Claim and counter-claim made through correspondences. On 1st August, 2004, Respondents filed Suit for recovery/claim of Rs. 40 lakhs and has taken out Summons for Judgment. On 16th August, 2005, Single Judge passed impugned order and thereby directed to deposit full amount of Rs. 40 lakhs. Being aggrieved, Appellant has filed present Appeal. Ap...

The Delhi High Court, in ALUPRO BUILDING SYSTEMS PVT LTD vs OZONE OVERSEAS PVT LTD,  has clarified and settled that Section 21 of the Arbitration & Conciliation Act 1996, is mandatory to be complied with before reference of disputes to arbitration. The court laid down the object and purpose of issuing the notice under Section 21 holding that the Section is not limited only for the purpose of determining limitation and a party cannot straightaway file a claim before the arbitrator without issuing the notice under Section 21. The court held that in the absence of an agreement to the contrary, notice under Section 21 of the Act by the claimant invoking the arbitration clause, preceding the reference of disputes to arbitration, is mandatory. In other words, without such notice, the arbitration proceedings that are commenced would be unsustainable in law. The court also held that mere acceptance of supplies by a party on the basis of invoices containing an arbitration clause w...