VELUGUBANTI HARI BABU versus PARVATHINI NARASIMHA RAO & ANR.

VELUGUBANTI HARI BABU versus PARVATHINI NARASIMHA RAO & ANR.

In proceedings under Section 11 of the Arbitration and Conciliation Act, 1996, it is incumbent upon the High Court to decide the existence, validity and genuineness of the arbitration agreement/MoU when forgery or fabrication is alleged; it cannot delegate this determination to the arbitrator.

Parties
Appellant: Velugubanti Hari Babu; Respondent: Parvathini Narasimha Rao; Respondent: Parvathini Narasimha Rao & Anr.
Jurisdiction
India
Judgment Date
13 July 2016
Procedural Posture
Civil Appeal / Appeal Against High Court Order Appointing Arbitrator Under Section 11 (5) & (6) of Arbitration and Conciliation Act, 1996
Outcome
Appeal allowed; impugned High Court order set aside; matter remitted to High Court.
Legal Topics
Appointment of Arbitrator, Jurisdiction of Court Under Section 11, Validity of Arbitration Agreement
Arbitration Appointment of Arbitrator Jurisdiction of Court Under Section 11 Validity of Arbitration Agreement

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Parties

Velugubanti Hari Babu

Appellant

Parvathini Narasimha Rao

Respondent

Parvathini Narasimha Rao & Anr.

Respondent

Procedural Posture

Civil Appeal / Appeal Against High Court Order Appointing Arbitrator Under Section 11 (5) & (6) of Arbitration and Conciliation Act, 1996

Legal Issues

  1. 1 Whether the High Court was justified in directing the arbitrator to decide the legality and validity of the MoU/arbitration agreement instead of deciding it itself
  2. 2 Whether the MoU dated 27.05.2013 is valid, genuine or forged

Ratio Decidendi

In proceedings under Section 11 of the Arbitration and Conciliation Act, 1996, it is incumbent upon the High Court to decide the existence, validity and genuineness of the arbitration agreement/MoU when forgery or fabrication is alleged; it cannot delegate this determination to the arbitrator.

Court Disposition

Appeal allowed; impugned High Court order set aside; matter remitted to High Court.

Orders

  • Remitting the case to High Court to decide legality, validity and genuineness of agreement/MoU on merits.
  • Appropriate orders to be passed including appointment of arbitrator if occasion arises.