R.N. KUMAR versus R.K. SORAL

R.N. KUMAR versus R.K. SORAL

The earlier agreement dated 19th March 1983, containing an arbitration clause, which was superseded by the agreement of 11th March 1985, stood revived upon non-payment of Rs.6.50 lakhs and acceptance by the parties through correspondence, thus the arbitration agreement subsisted and must be filed, and the High Court's direction was proper.

Parties
Petitioner: R.N. Kumar; Respondent: R.K. Soral
Jurisdiction
India
Judgment Date
13 April 1988
Procedural Posture
Special Leave Petition (civil) / Supreme Court Appeal From Division Bench Judgment of Delhi High Court
Outcome
Petition dismissed
Legal Topics
Arbitration Agreement, Novation of Contract, Duty to File Arbitration Agreement
Arbitration Contract Arbitration Agreement Novation of Contract Duty to File Arbitration Agreement

Case Brief

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Parties

R.N. Kumar

Petitioner

R.K. Soral

Respondent

Procedural Posture

Special Leave Petition (civil) / Supreme Court Appeal From Division Bench Judgment of Delhi High Court

Legal Issues

  1. 1 Whether there was a complete novation of the contract substituting the old contract with the new contract.
  2. 2 Whether the Court is obliged to direct the filing of an arbitration agreement under Section 20 of the Arbitration Act, 1940.

Ratio Decidendi

The earlier agreement dated 19th March 1983, containing an arbitration clause, which was superseded by the agreement of 11th March 1985, stood revived upon non-payment of Rs.6.50 lakhs and acceptance by the parties through correspondence, thus the arbitration agreement subsisted and must be filed, and the High Court's direction was proper.

Court Disposition

Petition dismissed

Orders

  • Petition fails and is accordingly dismissed.