City of London v Sancheti

City of London v Sancheti

Section 9 of the Arbitration Act 1996 does not apply because the Corporation of London is not a party to the arbitration agreement under the UK-India BIT, nor is it claiming through or under a party to that agreement. The lease contains a clause submitting disputes to the non-exclusive jurisdiction of the English courts, which precludes a stay in favour of arbitration. The inherent jurisdiction of the court does not justify a stay due to insufficient nexus between the County Court claim and the BIT arbitration.

Parties
Respondent/claimant: The Mayor and Commonalty & Citizens of the City of London; Appellant/defendant: Ashok Sancheti
Jurisdiction
England and Wales
Judgment Date
21 November 2008
Procedural Posture
Civil Appeal / Court of Appeal Judgment on Application for Permission to Appeal and Substantive Appeal
Outcome
Permission to appeal granted; appeal dismissed
Legal Topics
Stay of Proceedings, Bilateral Investment Treaties (bits), Jurisdiction, Contractual Interpretation
Arbitration International Law Landlord and Tenant Law Stay of Proceedings Bilateral Investment Treaties (bits) Jurisdiction Contractual Interpretation

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Parties

The Mayor and Commonalty & Citizens of the City of London

Respondent/claimant

Ashok Sancheti

Appellant/defendant

Procedural Posture

Civil Appeal / Court of Appeal Judgment on Application for Permission to Appeal and Substantive Appeal

Legal Issues

  1. 1 Whether section 9 of the Arbitration Act 1996 applies to stay proceedings where the claimant is not a party to the arbitration agreement
  2. 2 Whether the Corporation of London is bound by the arbitration agreement under the UK-India BIT
  3. 3 Whether a stay should be granted under the inherent jurisdiction of the court

Ratio Decidendi

Section 9 of the Arbitration Act 1996 does not apply because the Corporation of London is not a party to the arbitration agreement under the UK-India BIT, nor is it claiming through or under a party to that agreement. The lease contains a clause submitting disputes to the non-exclusive jurisdiction of the English courts, which precludes a stay in favour of arbitration. The inherent jurisdiction of the court does not justify a stay due to insufficient nexus between the County Court claim and the BIT arbitration.

Court Disposition

Permission to appeal granted; appeal dismissed

Orders

  • Permission to appeal granted
  • Appeal dismissed; no stay of County Court proceedings