M/S TODAY HOMES & INFRASTRUCTURE PVT. LTD. versus LUDHIANA IMPROVEMENT TRUST & ANR.

M/S TODAY HOMES & INFRASTRUCTURE PVT. LTD. versus LUDHIANA IMPROVEMENT TRUST & ANR.

The designated judge wrongly undertook a detailed review of the merits and deemed the arbitration clause invalid after the main contract was declared void, contrary to SBP & Co. and Section 16(1) principles; the arbitration provision survives and preliminary issues only should be considered under Section 11(6).

Source-derived case information.

Parties
Appellant: M/S Today Homes & Infrastructure Pvt. Ltd.; Respondent: Ludhiana Improvement Trust; Appellant: Mapletree Properties Pvt. Ltd.
Jurisdiction
India
Judgment Date
10 May 2013
Procedural Posture
Civil Appeal / Final Disposition on Appeal, Remand for Fresh Decision
Outcome
impugned judgment and order of designated Judge set aside; matter remitted for fresh de novo consideration
Legal Topics
Existence of Arbitration Agreement, Independence of Arbitration Clause, Appointment of Arbitrator, Scope of Chief Justice's Inquiry Under Section 11(6), Kompetenz Kompetenz
Arbitration Existence of Arbitration Agreement Independence of Arbitration Clause Appointment of Arbitrator Scope of Chief Justice's Inquiry Under Section 11(6) Kompetenz Kompetenz

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Parties

M/S Today Homes & Infrastructure Pvt. Ltd.

Appellant

Ludhiana Improvement Trust

Respondent

Mapletree Properties Pvt. Ltd.

Appellant

Procedural Posture

Civil Appeal / Final Disposition on Appeal, Remand for Fresh Decision

Legal Issues

  1. 1 Whether the arbitration agreement survives if the main agreement is declared void
  2. 2 Scope of inquiry by the Chief Justice or designate in an application under Section 11(6) of the Arbitration and Conciliation Act, 1996

Ratio Decidendi

The designated judge wrongly undertook a detailed review of the merits and deemed the arbitration clause invalid after the main contract was declared void, contrary to SBP & Co. and Section 16(1) principles; the arbitration provision survives and preliminary issues only should be considered under Section 11(6).

Court Disposition

impugned judgment and order of designated Judge set aside; matter remitted for fresh de novo consideration

Orders

  • Appeals disposed of.
  • Matter to be considered de novo in light of current judgment and prior Supreme Court decisions.