SIRAJUDEEN KASIM & ANR. versus M/S PARAMOUNT INVESTMENTS LTD.

SIRAJUDEEN KASIM & ANR. versus M/S PARAMOUNT INVESTMENTS LTD.

The Court held that the arbitration clause in the Shareholders' Agreement was validly invoked prior to the filing of the suit and is not prima facie superseded by the Settlement Agreement; disputes regarding whether rights have been superseded are arbitrable issues to be examined by the arbitrator.

Parties
Petitioner 1: Sirajudeen Kasim; Petitioner 2: Second Petitioner (company incorporated under laws of Singapore); Respondent: Paramount Investments Ltd.
Jurisdiction
India
Judgment Date
02 August 2010
Procedural Posture
Arbitration Petition / Appointment of Arbitrator Under Section 11 of the Arbitration and Conciliation Act, 1996
Outcome
Arbitration petition allowed; arbitrator appointed.
Legal Topics
International Commercial Arbitration, Appointment of Arbitrator, Arbitrability of Disputes, Supersession of Arbitration Agreement by Settlement Agreement
Arbitration Law International Commercial Arbitration Appointment of Arbitrator Arbitrability of Disputes Supersession of Arbitration Agreement by Settlement Agreement

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Parties

Sirajudeen Kasim

Petitioner 1

Second Petitioner (company incorporated under laws of Singapore)

Petitioner 2

Paramount Investments Ltd.

Respondent

Procedural Posture

Arbitration Petition / Appointment of Arbitrator Under Section 11 of the Arbitration and Conciliation Act, 1996

Legal Issues

  1. 1 Whether the Shareholders' Agreement (SHA) arbitration clause survives after the Settlement Agreement between Petitioner 1 and Respondent
  2. 2 Whether disputes between Petitioner 2 and Respondent can be referred to arbitration under SHA
  3. 3 Whether rights under SHA have been superseded by Settlement Agreement

Ratio Decidendi

The Court held that the arbitration clause in the Shareholders' Agreement was validly invoked prior to the filing of the suit and is not prima facie superseded by the Settlement Agreement; disputes regarding whether rights have been superseded are arbitrable issues to be examined by the arbitrator.

Court Disposition

Arbitration petition allowed; arbitrator appointed.

Orders

  • Justice S.B. Sinha, former Judge of the Supreme Court, appointed as sole arbitrator.
  • Arbitrator to decide dispute as early as possible, preferably within four months from entering upon reference.