AMEET LALCHAND SHAH AND OTHERS versus RISHABH ENTERPRISES AND ANOTHER

AMEET LALCHAND SHAH AND OTHERS versus RISHABH ENTERPRISES AND ANOTHER

All four agreements were integrally connected as part of a single commercial project; mere allegations of fraud in this case were not so serious as to preclude arbitration; therefore, all parties to all four agreements are to be referred to arbitration under the arbitration clause in the principal/main agreement.

Parties
Appellants: Ameet Lalchand Shah and Others; Respondents: Rishabh Enterprises and Another (Dr. A.M. Singhvi)
Jurisdiction
India
Judgment Date
03 May 2018
Procedural Posture
Civil Appeal / Appeal Against Judgment of Delhi High Court, Division Bench, Affirming Dismissal of Section 8 Application (refusal to Refer Disputes to Arbitration)
Outcome
Appeal allowed; order of High Court set aside.
Legal Topics
Reference to Arbitration, Interconnected Agreements, Fraud and Arbitration, Arbitration Clause, Section 8 Arbitration and Conciliation Act, 1996
Arbitration Contract Law Commercial Law Reference to Arbitration Interconnected Agreements Fraud and Arbitration Arbitration Clause Section 8 Arbitration and Conciliation Act, 1996

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Parties

Ameet Lalchand Shah and Others

Appellants

Rishabh Enterprises and Another (Dr. A.M. Singhvi)

Respondents

Procedural Posture

Civil Appeal / Appeal Against Judgment of Delhi High Court, Division Bench, Affirming Dismissal of Section 8 Application (refusal to Refer Disputes to Arbitration)

Legal Issues

  1. 1 Whether interconnected agreements, not all containing arbitration clauses, can be referred to arbitration under Section 8 of the Arbitration and Conciliation Act, 1996
  2. 2 Whether allegations of fraud preclude reference of disputes to arbitration

Ratio Decidendi

All four agreements were integrally connected as part of a single commercial project; mere allegations of fraud in this case were not so serious as to preclude arbitration; therefore, all parties to all four agreements are to be referred to arbitration under the arbitration clause in the principal/main agreement.

Court Disposition

Appeal allowed; order of High Court set aside.

Orders

  • All four agreements and parties referred to arbitration.
  • If parties cannot agree on arbitrator, to approach appropriate High Court for appointment.