K. MANGAYARKARASI & ANR. versus N.J. SUNDARESAN & ANR.

K. MANGAYARKARASI & ANR. versus N.J. SUNDARESAN & ANR.

Where the dispute arises from contractual assignment deeds that contain an arbitration clause and concerns in personam rights, the court must refer the parties to arbitration under Section 8; mere allegations of fraud do not, by themselves, preclude reference unless the fraud has implications in the public domain, and challenges as to existence, validity or vitiation by fraud are matters primarily for the arbitral tribunal (subject to Section 34 challenge).

Parties
Petitioner: K. Mangayarkarasi & Anr.; Respondent: N.J. Sundaresan & Anr.
Jurisdiction
India
Judgment Date
09 May 2025
Procedural Posture
Special Leave Petition (civil) No. 13012 of 2025 / Supreme Court Judgment
Outcome
Special Leave Petition dismissed
Legal Topics
Arbitrability, Fraud, Trademark Infringement, Passing Off, Contract, Section 8 Application, Section 16, Jurisdiction, Ouster of Jurisdiction
Arbitration and Conciliation Act, 1996 Trade Marks Act, 1999 Civil Procedure Arbitrability Fraud Trademark Infringement Passing Off Contract +4 more

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Parties

K. Mangayarkarasi & Anr.

Petitioner

N.J. Sundaresan & Anr.

Respondent

Procedural Posture

Special Leave Petition (civil) No. 13012 of 2025 / Supreme Court Judgment

Legal Issues

  1. 1 Whether a trademark infringement suit can be referred to arbitration under Section 8 of the Arbitration and Conciliation Act, 1996 when the defendant alleges existence of an arbitration agreement
  2. 2 Whether mere allegations of fraud are sufficient to render a dispute non-arbitrable and refuse reference to arbitration

Ratio Decidendi

Where the dispute arises from contractual assignment deeds that contain an arbitration clause and concerns in personam rights, the court must refer the parties to arbitration under Section 8; mere allegations of fraud do not, by themselves, preclude reference unless the fraud has implications in the public domain, and challenges as to existence, validity or vitiation by fraud are matters primarily for the arbitral tribunal (subject to Section 34 challenge).

Court Disposition

Special Leave Petition dismissed

Orders

  • Special Leave Petition dismissed
  • Order of the Commercial Court (District Judge Cadre), Coimbatore referring the parties to arbitration under Section 8 of the Arbitration and Conciliation Act, 1996 is upheld