Content Provider | Supreme Court of India |
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e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | Arbitration Agreement Appointment of Arbitrator |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Act(s) Referred | Arbitration and Conciliation Act, 1996 (26 of 1996) |
Case(s) Referred | Referred Case 0 Referred Case 1 |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Appeal Disposed Off |
Headnote | ARBITRATION AND CONG/LIA TION ACT, 1996: ss. 11(1)(b) and (6) - Existence of arbitration agreement even if main agreement is illegal and void - Held: An arbitration agreement could stand independent of the main agreement and did not necessarily become otiose, even if the main agreement, of which it is a part, is declared void -- By virtue of s. 16(1)(b), the arbitration clause continues to be enforceable, notwithstanding a declaration that the contract was null and void. s. 11 (6) - Application for appointment of arbitrator- Issues to be decided by Chief Justice or his designate - Explained - Held: Designated Judge was not require'd to undertake a detailed scrutiny of merits and de-merits the case, almost as if he was deciding a suit - He was only required to decide preliminary issues such as jurisdiction to entertain the application, existence of a valid arbitration agreement, whether a live claim existed or not, for the purpose of appointment of an arbitrator - By the impugned order, much more than what is contemplated u/s 11 (6) was sought to be decided, without any evidence being adduced by the parties - Impugned order of designated Judge is set aside, and matter remitted to be considered de novo in the light of the instant judgment and the decision of the Court.Disputes having arisen between the developers and Ludhiana Improvement Trust with respect to the agreement dated 24.5.2005, in an arbitration application u/s 11 (6) of the Arbitration and Conciliation Act, 1996, filed by the developers, the Chief Justice of the High Court by order dated 4.4.2008 appointed the arbitrator. The said order was challenged before the Supreme Court contending that since the main agreement which contained the arbitration agreement, was itself void, the arbitration agreement could not survive independent of the main agreement, and the question was required to be left to the arbitrator in terms of s.16 of the Act. Having regard of the 7-Judge Bench decision in SBP & Co. , the Supreme Court set aside the order of the Chief Justice of the High Court and remitted the matter for a fresh decision in keeping with the decision in SBP & Co.The instant appeals arose out of the order of the designate of the Chief Justice of the High Court, dismissing the arbitration application and holding that the agreement dated 24.5.2005 was not legal and valid and, therefore, the disputes between the parties arising out of the said agreement could not be referred to arbitrator. It ยท was contended that the designate Judge treated the matter as if he was deciding a suit, but without adducing evidence . |
Judge | Honble Mr. Justice Altamas Kabir |
Neutral Citation | 2013 INSC 340 |
Petitioner | M/s Today Homes & Infrastructure Pvt. Ltd. |
Respondent | Ludhiana Improvement Trust & Anr. |
SCR | [2013] 3 S.C.R. 589 |
Judgement Date | 2013-05-10 |
Case Number | 4596 |
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