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RASHID RAZA vs. SADAF AKHTAR

SCR Citation: [2019] 12 S.C.R. 460
Year/Volume: 2019/ Volume 12
Date of Judgment: 04 September 2019
Petitioner: RASHID RAZA
Disposal Nature: Appeal Disposed Off
Neutral Citation: 2019 INSC 1002
Judgment Delivered by: Hon'ble Mr. Justice R.F. Nariman
Respondent: SADAF AKHTAR
Case Type: CIVIL APPEAL /7005/2019
Order/Judgment: Judgment
1. Headnote

Arbitration and Conciliation Act, 1996: s. 11 – Appointment of arbitrator – Partnership deed between the parties – Partnership dispute – FIR by one of the partners alleging siphoning of funds and various business improprieties – Application u/s. 11 for appointment of arbitrator under the arbitration clause – Dismissal of the application – On appeal, held: There is distinction between serious allegations of forgery/fabrication in support of the plea of fraud as opposed to “simple allegations” – Two working tests are whether the plea permeate the entire contract and above all, the agreement of arbitration, rendering it void, or whether the allegations of fraud touch upon the internal affairs of the parties inter se having no implication in the public domain – In view thereof, in the instant case there are simple allegations since there is no allegation of fraud which would vitiate the partnership deed as a whole or, in particular, the arbitration clause concerned in the said deed – All the allegations pertain to the affairs of the partnership and siphoning of funds therefrom and not to any matter in the public domain – Thus, the disputes raised between the parties are arbitrable and, hence, s. 11 application is maintainable.

2. Case referred
3. Act
  • Arbitration and Conciliation Act, 1996 (26 of 1996)
4. Keyword
  • Arbitration and Conciliation Act
  • 1996
  • s. 11
  • Appointment of arbitrator
  • Partnership dispute
  • partners alleging siphoning of funds
  • FIR
  • arbitrability
5. Equivalent citation
    Citation(s) 2019 (8) SCC 710 = 2019 (8) Suppl. SCC 710 =