Nasharty & Ors v J Sainsbury Plc

Nasharty & Ors v J Sainsbury Plc

The proceedings are 'in relation to' the 1999 Share Sale Agreements because the real issue is whether those agreements were varied by the 2001 Agreements, and any determination would affect the parties' rights and obligations under the 1999 Agreements. Therefore, the dispute falls within the arbitration clause, and a stay under section 9 of the Arbitration Act 1996 is mandatory.

Parties
Claimant: Hesham Amin Hamza El Nasharty; Claimant: Amira Gamal El Din Kafafi; Claimant: Amal Farag Abou El Seoud; Claimant: Dr. Said Mahmoud Seif El Yazal; Defendant: J Sainsbury PLC
Jurisdiction
England and Wales
Judgment Date
30 September 2003
Procedural Posture
Commercial Court Application / Application for Stay of Proceedings Pending Arbitration
Outcome
Stay of proceedings granted
Legal Topics
Stay of Proceedings, Arbitration Agreement, Authority of Agent, Variation of Contract
Arbitration Contract Law Commercial Law Stay of Proceedings Arbitration Agreement Authority of Agent Variation of Contract

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Parties

Hesham Amin Hamza El Nasharty

Claimant

Amira Gamal El Din Kafafi

Claimant

Amal Farag Abou El Seoud

Claimant

Dr. Said Mahmoud Seif El Yazal

Claimant

J Sainsbury PLC

Defendant

Procedural Posture

Commercial Court Application / Application for Stay of Proceedings Pending Arbitration

Legal Issues

  1. 1 Whether the proceedings should be stayed under section 9 of the Arbitration Act 1996 due to an arbitration clause in the 1999 Share Sale Agreements
  2. 2 Whether the current dispute is 'in relation to' the 1999 Share Sale Agreements for the purposes of the arbitration clause
  3. 3 Whether the 2001 Agreements were entered into with authority and bind the claimants

Ratio Decidendi

The proceedings are 'in relation to' the 1999 Share Sale Agreements because the real issue is whether those agreements were varied by the 2001 Agreements, and any determination would affect the parties' rights and obligations under the 1999 Agreements. Therefore, the dispute falls within the arbitration clause, and a stay under section 9 of the Arbitration Act 1996 is mandatory.

Court Disposition

Stay of proceedings granted

Orders

  • Proceedings stayed under section 9 of the Arbitration Act 1996