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DLF HOME DEVELOPERS LIMITED vs. RAJAPURA HOMES PRIVATE LIMITED & ANR.

SCR Citation: [2021] 12 S.C.R. 1
Year/Volume: 2021/ Volume 12
Date of Judgment: 22 September 2021
Petitioner: DLF HOME DEVELOPERS LIMITED
Disposal Nature: Petitions Allowed
Neutral Citation: 2021 INSC 524
Judgment Delivered by: Hon'ble Mr. Justice Surya Kant
Respondent: RAJAPURA HOMES PRIVATE LIMITED & ANR.
Case Type: ARBITRATION PETITION /17/2020
Order/Judgment: Judgment
1. Headnote

Arbitration and Conciliation Act, 1996 – s.11(6) r/w s.11(12) – Appointment of Arbitrator – In terms of Share Purchase Agreements, the parties entered into Construction Management Agreements – Both sets of agreements contained arbitration clauses not similar to one another – Disputes arose – Respondents refused to appoint Arbitrator under the Construction Management Agreements – Present petitions filed by the Petitioner for appointment of a sole arbitrator for resolution of all disputes arising from the Construction Management Agreements – Held: Notwithstanding certain overlaps between the Share Purchase Agreements and Construction Management Agreements, their object and field of operation is different and distinct – It cannot be accepted out-rightly that the respective Share Purchase Agreements are the ‘principal agreements governing the transaction’ between the parties or that the present disputes can be resolved solely under the arbitration clause contained therein – Neither party pleaded the infringement of the core provisions of the said Agreements, thus it cannot be accepted that the subject controversy falls within the ambit of Clause 9 thereof and can be adjudicated only under the rules of Singapore International Arbitration Centre (SIAC), with seat and venue at Singapore – Further, parties have neither denied that there is no arbitrable dispute between them nor have they challenged the existence of the arbitration clause(s) in the Construction Management Service Agreements – The nature of disputes that have arisen between the parties can thus, be adjudicated in the arbitral proceedings u/Clause 11 of the Construction Management Agreements – Primary twin-test u/s.11(6) satisfied by the Petitioner – Sole arbitrator appointed to resolve all disputes between the parties.Arbitration and Conciliation Act, 1996 – ss.11, 11(6-A) – Scope of interference by Court at the stage of referral – Held: Courts are obliged to apply their mind to the core preliminary issues within the framework of s.11(6-A) – Thus, even when an arbitration agreement exists, it would not prevent the Court to decline a prayer for reference if the dispute does not correlate to the said agreement – Arbitration and Conciliation (Amendment) Act, 2015 – Arbitration and Conciliation (Amendment) Act, 2019 – s.11(6-A).

2. Case referred
3. Act
  • Arbitration And Conciliation (Amendment) Act, 2015 (3 of 2016)
4. Keyword
  • Arbitration and Conciliation Act
  • 1996
5. Equivalent citation
    Citation(s) 2021 (11) SCALE 130