Arbitration and Conciliation Act 1996 – s.8 – Reference to arbitration – When erred – MoU was arrived at between brothersthe appellant and the first respondent wherein joint family properties were to be liquidated to repay the liabilities of the business – MoU contained an arbitration agreement – Suits instituted by the appellant, first respondent filed applications u/s.8 seeking reference to arbitration – Applications dismissed by Trial Court – Order set aside by High Court, disputes in both the suits were referred to arbitration u/s.8 – Held: The MoU was between the appellant and the first respondent – The appellant instituted two suits – On facts, there were several parties to the suit who were not parties to the arbitration agreement – Since, the MoU was executed exclusively between the appellant and the first respondent, the reference to arbitration u/s.8 was patently in error – The non-family shareholdings, in any event, cannot be bound by the terms of the MoU since they are not parties to the document – Impugned judgment set aside – Applications filed by the first respondent u/s.8 dismissed.
As published in the Supreme Court Reports, Supreme Court of India. Text from the Indian Supreme Court Judgments open data set (Dattam Labs), CC BY 4.0.
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