RASHID RAZA versus SADAF AKHTAR

RASHID RAZA versus SADAF AKHTAR

Since the allegations pertain only to internal affairs of the partnership and do not vitiate the contract or arbitration clause, nor involve the public domain, the disputes are arbitrable and Section 11 application is maintainable.

Parties
Appellant: Rashid Raza; Respondent: Sadaf Akhtar
Jurisdiction
India
Judgment Date
04 September 2019
Procedural Posture
Civil Appeal / Appeal From High Court Order on Arbitration Application
Outcome
appeal allowed
Legal Topics
Appointment of Arbitrator, Arbitrability of Disputes, Allegations of Fraud
Arbitration Partnership Law Appointment of Arbitrator Arbitrability of Disputes Allegations of Fraud

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Legal principles 2 Authorities cited 3 Party arguments 2
Sign in to unlock

Parties

Rashid Raza

Appellant

Sadaf Akhtar

Respondent

Procedural Posture

Civil Appeal / Appeal From High Court Order on Arbitration Application

Legal Issues

  1. 1 Whether partnership disputes involving allegations of fraud are arbitrable under Section 11 of Arbitration and Conciliation Act, 1996.
  2. 2 Whether allegations of siphoning of funds and improprieties constitute serious fraud to render the arbitration clause void.

Ratio Decidendi

Since the allegations pertain only to internal affairs of the partnership and do not vitiate the contract or arbitration clause, nor involve the public domain, the disputes are arbitrable and Section 11 application is maintainable.

Court Disposition

appeal allowed

Orders

  • Judgment under appeal is set aside.
  • Justice Amareshwar Sahay, Retired Judge of Jharkhand High Court, appointed as sole arbitrator to resolve all disputes between parties.