MRS. HEMA KHATTAR & ANR. versus SHIV KHERA

MRS. HEMA KHATTAR & ANR. versus SHIV KHERA

Both appellants could have joined as plaintiffs in the suit as their causes of action were a continuity of the agreement and subsequent oral arrangement. The civil court lacked jurisdiction to entertain the suit once an application under Section 8 was made; the disputes are to be referred to arbitration as mandated...

Source-derived case information.

Parties
Appellant: Mrs. Hema Khattar; Appellant: Ashwani Khattar; Respondent: Shiv Khera
Jurisdiction
India
Judgment Date
10 April 2017
Procedural Posture
Civil Appeal / Appeal From High Court Decision
Outcome
Appeal allowed
Legal Topics
Joinder of Causes of Action, Arbitration Clause Applicability, Jurisdiction of Civil Court, Misjoinder of Parties, Arbitration and Conciliation Act, 1996 S.8
Civil Procedure Arbitration Joinder of Causes of Action Arbitration Clause Applicability Jurisdiction of Civil Court Misjoinder of Parties Arbitration and Conciliation Act, 1996 S.8

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Parties

Mrs. Hema Khattar

Appellant

Ashwani Khattar

Appellant

Shiv Khera

Respondent

Procedural Posture

Civil Appeal / Appeal From High Court Decision

Legal Issues

  1. 1 Whether suit was bad for misjoinder of parties and causes of action
  2. 2 Applicability of arbitration clause to oral agreement
  3. 3 Jurisdiction of civil court when Section 8 application is pending

Ratio Decidendi

Both appellants could have joined as plaintiffs in the suit as their causes of action were a continuity of the agreement and subsequent oral arrangement. The civil court lacked jurisdiction to entertain the suit once an application under Section 8 was made; the disputes are to be referred to arbitration as mandated by the arbitration clause, which continues to apply even after substitution of the written agreement by the oral one.

Court Disposition

Appeal allowed

Orders

  • The orders of the learned single Judge and division bench are set aside.
  • Disputes raised by appellants in CS(OS) 1532 of 2012 are referred to the sole arbitrator already appointed, Hon'ble Mr. Justice V.K. Gupta (Retd.), to be decided expeditiously in accordance with law.