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TMI Blog2023 (5) TMI 715X X X X Extracts X X X X X X X X Extracts X X X X ..... . [ 2019 (4) TMI 716 - SUPREME COURT ], but in a different context - reference to the decision in Garware Wall Ropes Limited (supra) was made to interpret the word existence , and whether an invalid arbitration agreement, can be said to exist? This examination was to decide who decides existence of an arbitration agreement in the context of Sections 8 and 11 of the Arbitration and Conciliation Act, 1996. The distinction between obiter dicta and ratio decidendi in a judgment, as a proposition of law, has been examined by several judgments of this Court, but we would like to refer to two, namely, State of Gujarat Ors. vs. Utility Users Welfare Association Ors. [ 2018 (4) TMI 1945 - SUPREME COURT] and JAYANT VERMA AND ORS. VE ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... LE MR. JUSTICE SANJIV KHANNA AND HON'BLE MR. JUSTICE M.M. SUNDRESH For the Petitioner : Mr. Rajive Bhalla, Sr. Adv., Mr. Amit Aggarwal, Adv., Mr. Sumeir Ahuja, Adv., Mr. Deepak Samota, Adv., Mr. Yajur Bhalla, Adv., Mr. Jaisurya Jain, Adv., Mr. Ashish Vajpayee, Adv., Ms. Akansha Gulati, Adv., Ms. Ragini Sharma, Adv., Mr. Shubham Bhalla, AOR For the Respondent : Ms. Pinki Aggarwal, Adv. ORDER We do not find any merit in the present special leave petitions and hence, the same are dismissed. However, we would like to record some reasons for dismissal of the present special leave petitions. The judgment in Vidya Drolia Ors. vs. Durga Trading Corporation (2021) 2 SCC 1 did not examine and decide the issue of effect ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... would result in unpalatable consequences. A reasonable and just interpretation of existence requires understanding the context, the purpose and the relevant legal norms applicable for a binding and enforceable arbitration agreement. An agreement evidenced in writing has no meaning unless the parties can be compelled to adhere and abide by the terms. A party cannot sue and claim rights based on an unenforceable document. Thus, there are good reasons to hold that an arbitration agreement exists only when it is valid and legal. A void and unenforceable understanding is no agreement to do anything. Existence of an arbitration agreement means an arbitration agreement that meets and satisfies the statutory requirements of both the Arbitration A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... th existence , as opposed to Section 8, Section 16 and Section 45, which deal with validity of an arbitration agreement is answered by this Court s understanding of the expression existence in Hyundai Engg. case (supra), as followed by us. Existence and validity are intertwined, and arbitration agreement does not exist if it is illegal or does not satisfy mandatory legal requirements. Invalid agreement is no agreement. xxx xxx xxx It is apparent from the aforementioned paragraphs in Vidya Drolia (supra) that reference to the decision in Garware Wall Ropes Limited (supra) was made to interpret the word existence , and whether an invalid arbitration agreement, can be said to exist? This examination was to decide who dec ..... X X X X Extracts X X X X X X X X Extracts X X X X
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