Content Provider | Supreme Court of India |
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e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | Arbitration and Conciliation Act 1996 |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Case(s) Referred | Referred Case 0 Referred Case 1 Referred Case 2 Referred Case 3 Referred Case 4 |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Appeal Allowed |
Headnote | Arbitration and Conciliation Act, 1996: s. 11 – Arbitration Clause in agreement – Respondent No.1 is a developer engaged in the business of construction and development of buildings – Appellant and respondent No. 1 entered into a ‘Development Agreement’ and pursuant thereto appellant also executed a General Power of Attorney (GPA), in favour of Respondent No. 1 – Failure on part of respondent No. 1 to complete the development works within the stipulated time – Appellant served respondents with legal notice communicating his desire to terminate the Development Agreement and cancel the GPA as the stipulated period had already lapsed – This gave rise to disputes and differences between the parties – Appellant invoked arbitration clause in the ‘Development Agreement’ and issued a notice to the respondents regarding referral of the dispute to the sole arbitrator – Respondents failed to respond to it – Appellant filed application u/s. 11 of the Act before the High Court – Respondents claimed that the contract lacked the express wording necessary for it to be considered a valid and binding agreement to refer the disputes to arbitration – High Court accepted the contention of respondents and dismissed application as not maintainable – Hence instant appeal – Held: High Court fell in error in holding that application u/s. 11 was not maintainable for want of a valid arbitration clause – Clause 18 luminously disclosed the intention and obligation of the parties to be bound by the decision of the tribunal, even though the words “final and binding” were not expressly incorporated therein – The parties evinced clear intention to refer the dispute to arbitration and abide by the decision of the tribunal, therefore the party autonomy deserves to be protected – The deficiency of words in agreement which otherwise fortifies the intention of the parties to arbitrate their disputes, cannot legitimise the annulment of arbitration clause – Clause 18, contemplates a binding reference to arbitration between the parties and it ought to have been given full effect by the High Court – Maharashtra Apartment Ownership Act, 1970 – s. 2. |
Judge | Hon'ble Mr. Justice Surya Kant |
Neutral Citation | 2022 INSC 935 |
Petitioner | Babanrao Rajaram Pund |
Respondent | M/s. Samarth Builders & Developers & Anr. |
SCR | [2022] 16 S.C.R. 151 |
Judgement Date | 2022-09-07 |
Case Number | 6272 |
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