RAMVALLABH TIBREWALLA versus DWARKADAS & CO.

RAMVALLABH TIBREWALLA versus DWARKADAS & CO.

An arbitration agreement which is intended to become operative only upon withdrawal of the suit and does so upon that event is one entered into while no suit with respect to its subject matter is pending. Therefore, it can properly be filed under Section 20 of the Arbitration Act, 1940.

Parties
Appellant: Ramvallabh Tibrewalla; Respondent: Dwarkadas & Co.
Jurisdiction
India
Judgment Date
31 August 1965
Procedural Posture
Civil Appeal / Appeal by Special Leave From Bombay High Court Judgment and Order Dated February 21, 1964 in Appeal No. 58 of 1960
Outcome
Appeal allowed; judgment and decree of Bombay High Court set aside; appeal remanded to lower appellate court for disposal in accordance with law.
Legal Topics
Arbitration Agreement, Interpretation of Arbitration Act, 1940 Section 20, Filing of Arbitration Agreements, Withdrawal of Suit and Effect on Arbitration, Procedure Under Arbitration Act
Arbitration Civil Procedure Arbitration Agreement Interpretation of Arbitration Act, 1940 Section 20 Filing of Arbitration Agreements Withdrawal of Suit and Effect on Arbitration Procedure Under Arbitration Act

Case Brief

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Parties

Ramvallabh Tibrewalla

Appellant

Dwarkadas & Co.

Respondent

Procedural Posture

Civil Appeal / Appeal by Special Leave From Bombay High Court Judgment and Order Dated February 21, 1964 in Appeal No. 58 of 1960

Legal Issues

  1. 1 Whether an arbitration agreement entered into after institution but after withdrawal of a suit can be filed under Section 20 of the Arbitration Act, 1940
  2. 2 Proper interpretation of 'before the institution of any suit' in Section 20

Ratio Decidendi

An arbitration agreement which is intended to become operative only upon withdrawal of the suit and does so upon that event is one entered into while no suit with respect to its subject matter is pending. Therefore, it can properly be filed under Section 20 of the Arbitration Act, 1940.

Court Disposition

Appeal allowed; judgment and decree of Bombay High Court set aside; appeal remanded to lower appellate court for disposal in accordance with law.

Orders

  • Judgment and decree dated February 21, 1964 in Appeal No. 58 of 1960 set aside.
  • Appeal No. 58 of 1960 remanded to the lower appellate court for disposal in accordance with law.