SANJIT SINGH SALWAN & ORS. versus SARDAR INDERJIT SINGH SALWAN & ORS.

SANJIT SINGH SALWAN & ORS. versus SARDAR INDERJIT SINGH SALWAN & ORS.

Because the respondents had affirmatively pleaded that their suit was not barred by Section 92 CPC, agreed to have disputes resolved by arbitration, accepted the arbitral award and sought disposal of their appeal in terms of that award resulting in a consent/compromise decree, they are estopped by their conduct and election from subsequently challenging the validity of the award or the decree on the ground of non-arbitrability; accordingly the orders holding the award to be a nullity were set aside and the appellants were permitted to revive execution proceedings.

Parties
Appellants: Sanjit Singh Salwan & Ors.; Respondents: Sardar Inderjit Singh Salwan & Ors.
Jurisdiction
India
Judgment Date
14 August 2025
Procedural Posture
Civil Appeal No. 10653 of 2025 / Appeal Before the Supreme Court (judgment)
Outcome
Appeal allowed
Legal Topics
Estoppel by Conduct, Doctrine of Election, Approbation and Reprobation, Arbitrability, Consent/compromise Decree, Execution of Decree
Civil Procedure Arbitration and Conciliation Equity Trusts Estoppel by Conduct Doctrine of Election Approbation and Reprobation Arbitrability +2 more

Case Brief

Summary, issues, holding and outcome

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Parties

Sanjit Singh Salwan & Ors.

Appellants

Sardar Inderjit Singh Salwan & Ors.

Respondents

Procedural Posture

Civil Appeal No. 10653 of 2025 / Appeal Before the Supreme Court (judgment)

Legal Issues

  1. 1 Whether a party can raise a plea of estoppel in law while ignoring its prior conduct that induced the other party to alter its position to its detriment
  2. 2 Whether disputes relating to the affairs of the Trust were non-arbitrable under Section 92 CPC and hence the arbitral award was a nullity

Ratio Decidendi

Because the respondents had affirmatively pleaded that their suit was not barred by Section 92 CPC, agreed to have disputes resolved by arbitration, accepted the arbitral award and sought disposal of their appeal in terms of that award resulting in a consent/compromise decree, they are estopped by their conduct and election from subsequently challenging the validity of the award or the decree on the ground of non-arbitrability; accordingly the orders holding the award to be a nullity were set aside and the appellants were permitted to revive execution proceedings.

Court Disposition

Appeal allowed

Orders

  • Order passed by the Commercial Court in Arbitration Suit No.25 of 2023 dated 24.05.2024 set aside
  • Judgment of the Division Bench of the High Court in Appeal No.356 of 2024 dated 30.08.2024 set aside