Court : Company Law Board CLB
Reported in : (2006)129CompCas818
..... while it is true that the question of jurisdiction has to adjudicated, in terms of section 16 of the arbitration and conciliation act, 1996, by the arbitral tribunal, provided that the arbitration proceedings are validly initiated, which is completely lacking in the present case for want of authority from the board of directors of the company. ..... the indian arbitration act (act no.x)(10) of 1940/the arbitration and conciliation act, 1996 shall not be applicable to the arbitration proceedings or award, which may be rendered. ..... even if the indian arbitration law were to apply, section 5 of arbitration & conciliation act, 1996 precludes the courts from ordinarily interfering in the arbitral process and the court's intervention must be minimal as held in p. ..... section 16 of the arbitration and conciliation act provides that the arbitral tribunal may rule on its own jurisdiction and the authority of the arbitral tribunal goes to the root of its jurisdiction and not just its extent as held in konkan railway corporation ltd. v. ..... no judicial authority shall intervene in the arbitration proceedings except whereso provided in the arbitration & conciliation act as held in brawn laboratories limited v. ..... there should not be any judicial interference with commercial decision of board of directors of the company. ..... there is no judicial precedent in the globe to show that such anti-suit injunction could be issued against a natural forum. .....
Tag this Judgment!Court : Company Law Board CLB
Reported in : (1999)95CompCas640
..... . as per section 45 of the arbitration and conciliation act, 1996, a judicial authority, when seized of an action of the matter in respect of which parties have made an agreement, referred to in section 44, shall, at the request of one of the parties or any person claiming through or under him, refer the parties to arbitration, unless it finds that the said agreement is null and void, inoperative or incapable of being performed" ..... he pointed out to section 45 of the arbitration and conciliation act of 1996, according to which a judicial authority shall have to, at the request of one of the parties, refer the parties to arbitration when such a judicial authority is seized of an action in a matter in respect of which the parties have made an agreement for an arbitration. ..... . therefore, we conclude that the principal agreement still subsists and that the supplemental agreement has to be read as a part and parcel of the principal agreement which contains an arbitration clause and that the matter complained of in the petition before us has arisen out of and in connection with the said agreement and that there is nothing to show that the agreement is null and void, inoperative or incapable of being performed and that we are statutorily bound to refer the parties to arbitration in terms of section 45 of the arbitration and conciliation act, 1996.17 .....
Tag this Judgment!Court : Company Law Board CLB
Reported in : (2005)123CompCas280
..... the respondents have filed an application under section 8 of the arbitration & conciliation 'act, 1996 seeking for referring the parties to arbitration on the ground that all the allegations in the petition relate to matters covered under an arbitration agreement between the parties.2. dr. ..... most of the cases cited by dr.singhvi relate to the interpretation of section 11 of the arbitration & conciliation act and in matters of partnership agreement or contractual agreements and none related to a petition under sections 397/398 of the act. ..... in terms of section 28 (3) of the arbitration & conciliation act, the arbitral tribunal can only deal with the terms of the agreement and cannot examine violation of the provisions of the act or the articles. ..... in some cases, as cited by dr singhvi, this board has held that if the allegations relate only to the terms of an agreement containing an arbitration clause, then the parties have to be referred to arbitration and in some cases where this board found that the allegations could be examined without reference to the arbitration agreement, the applications under section 8 were rejected. ..... section 8 of the act is mandatory and a judicial body is bound to refer the parties to arbitration if the matter in dispute before the judicial body is covered under the arbitration agreement. .....
Tag this Judgment!Court : Company Law Board CLB
Reported in : (2004)50SCL620
..... the respondents/applicants have submitted before this board that company law board is a judicial authority within the meaning of section 8(1) of the arbitration and conciliation act, 1996. ..... the perusal of sections 44 and 45 and first schedule of the arbitration and conciliation act 1996 indicates that to invoke arbitration clause in an agreement, there must be arbitration agreement in writing signed by the parties in terms of section 7(4)(a) and section 45 read with the first schedule, where the word "signed by the parties" are missing as argued by the learned counsel for respondent which are contrary to their pleadings as the act of 1996 has been invoked by the applicants. ..... the learned counsel for the petitioner further submitted that the arguments of respondents that the jindal and associates have wide meaning and can be interpreted widely is not applicable in this case as it would amount to traversing beyond the elements of section 7, 8 and 45 and first schedule of the arbitration and conciliation act, 1996 which specifically requires that any document in writing should be "signed by the parties". ..... the arbitration agreement should be between the parties in writing and if such document is in writing, it should be signed by the parties under the provisions of section 7, 8, 44 and 45 of the arbitration and conciliation act, 1996 and the first schedule thereto.16. .....
Tag this Judgment!Court : Company Law Board CLB
Reported in : (2002)108CompCas115
..... order we are considering c a 97 of 2000 filed under section 8 of the arbitration and conciliation act, 1996 ('the arbitration act') by the respondents in cp no. ..... law of arbitration and conciliation by justice dr. ..... portions of article 33 of the agreement and article 190 of the articles of association of the company dealing with arbitration read as follows: "any claim, dispute, deadlock or controversy which cannot be resolved through conciliation within 15 days or such extended period as parties may unanimously agree, a party may refer the claim, dispute, or difference to arbitration as herein under provided in accordance with the new indian and arbitration act, 1996. ..... under section 397/398 of the act relate to or arise out of or in connection with an arbitration agreement and that the reliefs appropriate to the facts of the case could be determined/granted by an arbitrator, then, the clb is bound to refer the matter to arbitration in terms of the mandatory provisions of section 45 of the arbitration act provided that the agreement is not null and void, inoperative or incapable of being performed; o if any of the requirements of section 45 is not satisfied, then, the clb can decline to refer the parties to arbitration; o the judicial ..... strict rule of construction of the agreement/articles would show that there is no binding arbitration agreement covering all matters in the agreement as the right to invoke the court's intervention has also been provided in respect of certain matters. .....
Tag this Judgment!Court : Company Law Board CLB
Reported in : (2008)145CompCas166
..... held that the conditions which are required to be satisfied under sub-sections (1) and (2) of section 8 of the arbitration and conciliation act, 1996, before the court can exercise its powers to refer parties to arbitration where there is an arbitration agreement are that (i) there is an arbitration agreement; (ii) a party to the agreement brings an action in the court against the other party; (iii) subject-matter of the action is the same as the subject-matter of the arbitration agreement; and (iv) the other party moves the court for referring the parties ..... sub-section (1) of section 8 of the 1996 act provides that a judicial authority before which an action is brought in a matter which is the subject of an arbitration agreement shall, if a party so applies not later than when submitting his first statement on the substance of the dispute, refer the parties to arbitration. ..... 's supreme court has held that in terms of section 45 of the arbitration act, the judicial authority has to only form a prima facie opinion that there exists an arbitral agreement which is not null and void; inoperative or incapable of being performed and once such a prima facie opinion is formed, the parties will have to be referred to arbitration.in terms of section 2(h) of the arbitration act, "party" means a party to an arbitration agreement. .....
Tag this Judgment!Court : Company Law Board CLB
Reported in : (2003)41SCL108
..... " section 8 of the arbitration and conciliation act, 1996 provides that "a judicial authority before which an action is brought in a matter which is the subject of an arbitration agreement shall, if a party so applies not later than when submitting his first statement on the substance of the dispute, refer the parties to arbitration".this application under section 8 of arbitration and conciliation act, 1996 was filed in july 1999 seeking for referring the parties to arbitration, in terms of the arbitration clause in the shareholders' agreement dated 28-1-1993 as extracted above.one of the main requirements of section 8 of the arbitration and conciliation act, 1996 is that a party ..... 128 (clb) - to show that a strict interpretation of the provision of section 8 of the arbitration and conciliation act, 1996 indicates that when the subject-matter before the judicial body is the same as covered in an arbitration agreement, such judicial body would be bound to refer the parties to arbitration. ..... in the company petition filed under section 397/ 398 of the companies act, 1956 ('the act'), alleging acts of oppression and mismanagement in the affairs of gtp granites limited ('the company'), the respondents have filed an application under section 8 of the arbitration and conciliation act, 1996 ('the act, 1996') to order and direct that the disputes raised by the petitioners in the company petition be referred to arbitration in accordance with clause 9 of the shareholders' agreement dated .....
Tag this Judgment!Court : Company Law Board CLB
Reported in : (2006)132CompCas92
..... section 26 does not provide for bifurcation of the subject matter of an action as in the case of section 8 of the arbitration and conciliation act, 1996 and, therefore, the grievances in regard to the acts of mismanagement and statutory violations raised in the company petition cannot be separated and dealt with separately by this board ..... muralikrishna (2005) 59 scl 311 held that the clb has some of trappings of a court, but, given the scope, functions, the special jurisdiction conferred upon it and control of central government over it, it cannot be regarded as a court.therefore, proceedings before the clb, though judicial in nature, they being only for limited purpose, cannot be treated as a suit within generic meaning of the term "suit". ..... the petitioner seeks the intervention of aaifr for declaration that the earlier sanctioned scheme failed ..... o to maintain the existing shareholding pattern save to the extent provided in the scheme.it is on record that bifr formed an opinion on 27.12.2002 that the company had not fully complied with the terms of the sanctioned scheme and gave yet another opportunity to the company for submitting a revised draft rehabilitation scheme by 31.01. ..... , under the garb of the sanctioned scheme, the second respondent got allotted almost all the shares (20 lakh shares) to his family and friends and associates on 25.4.2003 by representing that they have infused loans to the extent of rs. ..... 250 lakhs and convert the promoters' unsecured loans to the extent of rs .....
Tag this Judgment!Court : Company Law Board CLB
Reported in : (2007)139CompCas653
..... i therefore, find that there is no commonality of the parties to the present proceedings and the agreement dated 26.08.2004, which is one of the essential requirements of section 8 of the arbitration and conciliation act, 1996 and as reiterated in bpn communications limited v. ..... the second respondent and its managing director invoking the arbitration clause contained in the second amended agreement dated 26.08.2004 have filed a petition under section 9 of the arbitration and conciliation act, 1996 before the high court of delhi, praying for interim measures; inter-alia, to secure the amount of rs. ..... it is far from doubt that no arbitrator is empowered either to cancel the shares or order rectification of register of the members of a company.in view of my foregoing conclusions, the prayer of the applicant to refer the parties before the clb to arbitration in terms of section 8 of the arbitration and conciliation act does not merit any consideration and accordingly the application is rejected. ..... pvg ruju (2004) 4 scc 539 held that one of the pre-conditions to be satisfied before invoking the jurisdiction of the judicial authority under section 8 of the act 1996 includes the fact that the "subject matter of the action is the same as the subject matter of the arbitration agreement". ..... 20 crore even as on 29.10.2004, leading to a piquant situation that the share capital of the company remains without any consideration to the extent of rs. .....
Tag this Judgment!Court : Company Law Board CLB
Reported in : (2005)123CompCas43
..... submitted that an account of the statutory mandate conferred under section 5 of the arbitration and conciliation act, 1996, restraining and confining any judicial intervention, the present cases extremely strong for referring the dispute raised in the present petition to arbitration. ..... for respondent also prayed that the matter for arbitration in accordance with clause 6 of the second mou being the arbitration agreement between the effective parties under section 8 of the arbitration and conciliation act, 1996 be ordered to be referred for arbitration.7. ..... and 156/2004 under section 8 of the arbitration and conciliation act 1996 ..... the fact that the second mou contains the arbitration clause for resolution of dispute, the present controversies and disputes have to be settled by arbitration in accordance with the arbitration and conciliation act, 1996. ..... of the mou reads as under:- "all disputes, controversies, or differences, which may arise between the parties, out of or in relation to or in connection with this agreement, or for the breach thereof, shall be finally settled by arbitration, in accordance with the arbitration and conciliation act, 1996. ..... (2002 1 supreme court cases 203 and mentioned that section 8 of the 1996 act mandates that the judicial authority before which an action has been brought in respect of a matter, which is subject matter of an arbitration agreement, shall refer the parties to arbitration if a party to such an agreement applies not later than when submitting .....
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