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IN THE HIGH COURT OF KARNATAKA AT BENGALURU
V.SRISHANANDA
Ashok S. Dhariwal, S/o. Suganchand Dhariwal – Appellant
Versus
Mahaveer K. Ranka, S/o. Late Kaluram Ranka – Respondent
| Table of Content |
|---|
| 1. arbitration proceedings delay (Para 1) |
| 2. factual background of partnership and disputes (Para 3 , 4 , 5 , 6 , 7 , 8 , 9 , 10 , 11 , 12 , 13 , 14 , 15 , 16 , 17) |
| 3. court's reasoning on arbitrability (Para 18 , 19 , 22) |
| 4. arguments on arbitration nature and fraud allegations (Para 20 , 21 , 23 , 24 , 25 , 26 , 27 , 28) |
| 5. conclusion of dismissal and rights preservation (Para 99 , 100) |
JUDGMENT :
V. SRISHANANDA, J.
1. The present Civil Revision Petition is a classic example of how an arbitration proceedings can be delayed even at the very inception stage in utter disregard to the laudable object of early resolution of civil dispute and Alternate Dispute Resolution System and defeating the very object of the enactment of Arbitration and Conciliation Act, 1996. It is often said that resolution of disputes by arbitration in India is full of brakes and no engine. Present case is best example for the said saying.
2. Present Civil Revision Petition is filed by the appellant in M.A No.36 of 2015 on the file of the III Additional City Civil and Sessions Judge, Bengaluru,(CCH- 25) challenging the validity of the said judgment dated 24.11.2018 dismissing the Appeal filed by him ch
Mere allegations of fraud do not inherently preclude arbitration unless they raise complex issues requiring a full trial; straightforward financial disputes remain arbitrable under the Arbitration an....
The court held that allegations of fraud and misappropriation of funds, when inter se and with no public implications, are arbitrable under the Arbitration and Conciliation Act, 1996.
The court affirmed that objections regarding non-arbitrability of disputes are not to be considered at the pre-referral stage under Section 11(6) of the Arbitration and Conciliation Act, 1996.
The court established that serious allegations of criminality do not automatically render partnership disputes non-arbitrable unless they permeate the entire arbitration agreement.
The mere existence of an arbitration clause does not automatically oust the jurisdiction of civil courts unless explicitly stated in law.
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