SANDEEP KUMAR AND ORS. versus MASTER RITESH AND ORS.

SANDEEP KUMAR AND ORS. versus MASTER RITESH AND ORS.

If some defendants are not parties to the arbitration agreement, the arbitration clause cannot be invoked as against them and hence proceedings cannot be stayed under Section 34 of the Arbitration Act, 1940 or Section 8 of the Arbitration and Conciliation Act, 1996.

Parties
Appellants: Sandeep Kumar and others; Respondents: Master Ritesh and others
Jurisdiction
India
Judgment Date
31 October 2006
Procedural Posture
Civil Appeal / Final
Outcome
Appeal allowed
Legal Topics
Arbitration Clause Applicability, Shareholder Disputes, Jurisdiction of Arbitral Tribunal
Arbitration Company Law Arbitration Clause Applicability Shareholder Disputes Jurisdiction of Arbitral Tribunal

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Parties

Sandeep Kumar and others

Appellants

Master Ritesh and others

Respondents

Procedural Posture

Civil Appeal / Final

Legal Issues

  1. 1 Whether the arbitration clause can be invoked against parties who are not signatories to the arbitration agreement
  2. 2 Effect of amending the plaint by deleting the names of parties to the arbitration agreement
  3. 3 Whether proceedings can be stayed under Section 34 of Arbitration Act, 1940 or Section 8 of Arbitration and Conciliation Act, 1996

Ratio Decidendi

If some defendants are not parties to the arbitration agreement, the arbitration clause cannot be invoked as against them and hence proceedings cannot be stayed under Section 34 of the Arbitration Act, 1940 or Section 8 of the Arbitration and Conciliation Act, 1996.

Court Disposition

Appeal allowed

Orders

  • Impugned judgment set aside
  • No costs