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TMI Blog2008 (2) TMI 852X X X X Extracts X X X X X X X X Extracts X X X X ..... Lokranjan ( on one part) and Mr. N.R.Dongre and Mrs. Sumitra Charat Ram (on the other part). Brigadier Rajaratnam was the Settlor of the Trust and Mr. N.R.Dongre and Mrs. Sumitra Charat Ram were the two trustees of the Trust. This Trust with an amount of Rs. 5001/- was opened for the benefit of the beneficiaries as defined in the Trust. As per Trust, up to the period of 30th June, 1989 Vishvakarma Trust, a Trust settled by Mr. Prem Pandhi in terms of Trust Deed dated 26th June, 1984 was to be the beneficiary and from 1st July, 1989 the beneficiaries as stated in Vishvakarma Trust were to become beneficiaries under this Trust in the same proportion, extent and mode as under Vishvakarma Trust. The Trust also provided that after original trust ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... etween the beneficiaries since the respondents wanted to part with their share of benefit under the Trust to a third party, for consideration and the spirit of the Trust as may be gathered from the Trust Deed is that it was a family Trust and the entire benefits must remain within the two families in the proportion mentioned in the Trust and no beneficiary can sell his/her benefit to a third party without giving first offer to other beneficiaries of the same family. It is therefore submitted that since Respondents intend to transfer their share without offering the same to the Petitioner, a dispute has arisen and in view of the Arbitration Agreement contained in the Trust Deed, the matter should be referred to the sole Arbitrator to be appo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (2) An arbitration agreement may be in the form of an arbitration clause in a contract or in the form of a separate agreement. (3) An arbitration agreement shall be in writing. (4) An arbitration agreement is in writing if it is contained in -- (a) a document signed by the parties; (b) an exchange of letters, telex, telegrams or other means of telecommunication which provide a record of the agreement; or (c) an exchange of statements of claim and defense in which the existence of the agreement is alleged by one party and not denied by the other. (5) The reference in a contract of a document containing an arbitration clause constitutes an arbitration agreement if the contract is in writing and the reference is such as to make that arb ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re Settlor places some property in the hands of Trustees and gives power to the Trustees to manage the property in a specified manner and to give benefit of the property to certain persons. A Trust may be a Private Trust or a Public Trust and a similar arbitration clause can be there even in a Public Trust. In Public trust or Trust of religious nature, the beneficiaries would be innumerable persons, who are not even known to the Trustees. I consider that the Settlor and Trustees together cannot enter into a contract on behalf of the beneficiaries. Any dispute between the beneficiaries can be referred to the arbitration only if there is an independent Arbitration agreement between the beneficiaries for referring the dispute to the arbitratio ..... X X X X Extracts X X X X X X X X Extracts X X X X
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