9911796707
TMI Blog2023 (7) TMI 1108X X X X Extracts X X X X X X X X Extracts X X X X ..... the appellant and the first respondent. In the second suit, apart from the two defendants who are parties to the first suit, relief has been sought against Canara Bank - it is evident that there are several parties to the suit who are not parties to the arbitration agreement. The MoU which is executed between the parties indicates that the Sachdeva family comprising of both the appellant and the first respondent was carrying on business in several companies, partnership firms and proprietorship under the joint ownership of the Sachdeva family. The MoU contains a description of the respective family units and their concerns. The MoU indicates that there are certain non-family shareholdings. Since the MoU was executed exclusively between ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (Junior Division), Amritsar allowing applications under Section 8 of the Arbitration and Conciliation Act 1996 1996 Act in two suits instituted by the first respondent, namely, Case No 64/2438/2014 and Civil Suit No 28/53/2015. 3 The appellant and the first respondent are brothers and were conducting business in the name and style of Sachdeva and Sons in partnership. The partnership is alleged to have purchased a number of properties in the name of the appellant and his deceased father. It has also been alleged that subsequently the ownership of the property was transferred to a concern by the name of Sachdeva and Sons. A private limited company has since been incorporated. 4 On 14 September 2010, a Memorandum of Understanding ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... /1(0-10), 29/13(8-0), 14(2-10), 17(3-18) and 18(8-4) as per jamabandi for the year 2006- 07 situated at Village Gilwali, Chabba, Sangrana Sahib, Tarn Taran Road, Amritsar, with complete costs of the present suit, may kindly be passed in favour of the plaintiff and against the defendants. 6 A second suit, Suit No 28/53/2015, was instituted by the appellant. Besides the first respondent, the other parties to the suit were Sachdeva and Sons Industries Private Limited and Canara Bank. The reliefs which have been sought in the second suit were in the following terms: Under the circumstances, above referred, it is most respectfully prayed that a decree for permanent injunction restraining the defendants No.3,4 and 5 from disbursing or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hallenged the orders of the trial court under Article 227 of the Constitution. The High Court, by the impugned order dated 1 August 2017, set aside the judgment of the trial court and directed that the disputes in both the suits be referred to arbitration under Section 8 of the 1996 Act. The dispute has travelled to this Court. 8 We have heard Mr Rajiv Talwar, counsel for the appellant, Mr Vishal Mahajan, counsel for the first and second respondents and Mr Gunjan Kumar, counsel for the third to fifth respondents. 9 The narration of facts indicates that the MoU dated 14 September 2010 is between the appellant and the first respondent. The appellant instituted two suits. In the first suit, the first respondent has been impleaded as the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... reference to arbitration under Section 8 of the trial Judge was patently in error. Neither Canara Bank nor the company are parties to the arbitration agreement. The MoU has been executed between the appellant and the first respondent. The non-family shareholdings, in any event, cannot be bound by the terms of the MoU since they are not parties to the document. 11 For the above reasons, we set aside the impugned judgment and order of the Single Judge of the High Court dated 1 August 2017. In consequence, the applications filed by the first respondent under Section 8 of the 1996 Act shall stand dismissed. The High Court, while allowing the applications under Section 8 of the 1996 Act had directed the Civil Judge (Junior Division) to pass c ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
