Shri Vimal Kishor Shah & Ors. v. Mr. Jayesh Dinesh Shah & Ors.
Case brief
What is this about?
Shri Vimal Kishor Shah & Ors. v. Mr. Jayesh Dinesh Shah & Ors., [2016] 7 S.C.R. 102; Civil Appeal No. 8164 of 2016; Supreme Court of India, decided August 17, 2016 (Chelameswar and Sapre JJ.; judgment delivered by Sapre J.). Beneficiaries of the Kaydee Family Trust sought appointment of an arbitrator under Section 11 of the Arbitration and Conciliation Act, 1996 invoking clause 20 of the Trust Deed. Held: clause 20 is not an 'arbitration agreement' under ss. 2(b)/2(h) read with s. 7, since beneficiaries do not sign the Trust Deed and no proposal-and-acceptance arises inter se trustees/beneficiaries; disputes relating to trusts, trustees and beneficiaries are non-arbitrable, the Indian Trust Act, 1882 implying exclusion of arbitration by conferring Civil Court remedies; a seventh non-arbitrable category was added to the Booz Allen list. Appeal allowed; the Bombay High Court's order dated 06.03.2013 in Arbitration Application No. 278/2012 appointing Shri S.R. Shah as sole arbitrator was set aside and the Section 11 application dismissed as not maintainable.