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IN THE HIGH COURT OF JUDICATURE AT BOMBAY
SOMASEKHAR SUNDARESAN
Ravindra Eknath Kumavat – Appellant
Versus
Future Development Construction Company – Respondent
| Table of Content |
|---|
| 1. arbitration petition based on mou. (Para 1 , 2 , 3) |
| 2. contesting validity of cancellation deed. (Para 4 , 5 , 6) |
| 3. jurisdiction issues of the section 11 court. (Para 7 , 8) |
| 4. existence of valid arbitration agreement. (Para 9 , 10 , 11) |
| 5. non-signatory involvement considerations. (Para 12 , 13 , 14 , 15) |
| 6. arbitral tribunal's jurisdiction assessment. (Para 16 , 17) |
| 7. petition conclusion and arbitration appointment. (Para 18 , 19 , 20 , 21) |
JUDGMENT :
SOMASEKHAR SUNDARESAN, J.
Context and Background:
1. This Petition has been filed under Section 11 of the Arbitration and Conciliation Act, 1996 (“the Act”) seeking a reference to arbitration, of disputes and differences purporting to arise from a Memorandum of Understanding dated February 24, 2022 (“MoU”). The arbitration agreement is contained in Clause 12 (found at Page Nos. 64 and 65 of the Petition). In the interest of brevity, the arbitration agreement is not being extracted here. Suffice it to say that this matter falls within the jurisdiction of this Court.
2. It is apparent from the record that the arbitration agreement was invoked by the Petitioner on September 2, 2023. The MoU related to sale of certain property
The arbitration agreement survives cancellation of the MoU, with substantive issues left for the arbitral tribunal to adjudicate. Section 11 restricts the court’s role to confirming the existence of ....
The court upheld the referral of disputes to arbitration, affirming that the existence and validity of arbitration agreements are matters for the Arbitral Tribunal to determine.
An arbitration clause survives the termination of the substantive contract, allowing disputes to be resolved by the arbitrator regardless of the contract's lapse due to time constraints.
The court upheld that for an arbitration, procedural rules must be correctly adhered to, and a Memorandum of Understanding lacking essential terms does not constitute a concluded contract for specifi....
Disputes arising from contractual agreements should be resolved through arbitration as stipulated in the arbitration clause, reinforcing parties' obligations.
An arbitrator's appointment must adhere to the agreed procedure; failure to do so renders the appointment invalid under Section 11(6) of the Arbitration Act.
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