SUKANYA HOLDINGS PVT. LTD versus JAYESH H. PANDYA AND ANR.

SUKANYA HOLDINGS PVT. LTD versus JAYESH H. PANDYA AND ANR.

Section 8 of the Arbitration and Conciliation Act, 1996 does not require or permit bifurcation of a suit into arbitrable and non-arbitrable portions or reference to arbitration where not all parties are signatories to the arbitration agreement or where the subject matter of the suit extends beyond the arbitration agreement. The jurisdiction of the civil court is preserved where parties have not taken appropriate steps for reference or when the suit includes parties or issues beyond the arbitration clause.

Parties
Appellant: Sukanya Holdings Pvt. Ltd.; Respondent: Jayesh H. Pandya; Respondent: Respondent No. 2
Jurisdiction
India
Judgment Date
14 April 2003
Procedural Posture
Civil Appeal / Appeal Against Judgment and Order Dated 18.9.2001 of the Bombay High Court in Arbitration Petition No. 500 of 2001
Outcome
Appeal dismissed
Legal Topics
Section 8 Arbitration and Conciliation Act, Reference to Arbitration, Parties to Arbitration Agreement

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Parties

Sukanya Holdings Pvt. Ltd.

Appellant

Jayesh H. Pandya

Respondent

Respondent No. 2

Respondent

Procedural Posture

Civil Appeal / Appeal Against Judgment and Order Dated 18.9.2001 of the Bombay High Court in Arbitration Petition No. 500 of 2001

  1. 1 Whether the dispute in a suit for dissolution of partnership and accounts, involving parties not bound by the arbitration agreement or concerning matters outside the arbitration agreement, can be referred to arbitration under Section 8 of the Arbitration and Conciliation Act, 1996.

Ratio Decidendi

Section 8 of the Arbitration and Conciliation Act, 1996 does not require or permit bifurcation of a suit into arbitrable and non-arbitrable portions or reference to arbitration where not all parties are signatories to the arbitration agreement or where the subject matter of the suit extends beyond the arbitration agreement. The jurisdiction of the civil court is preserved where parties have not taken appropriate steps for reference or when the suit includes parties or issues beyond the arbitration clause.

Court Disposition

Appeal dismissed

Orders

  • No order as to costs
  • It is open to the parties to request the Court for expeditious disposal of the suit