{"id":142000,"date":"2009-03-20T00:00:00","date_gmt":"2009-03-19T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/qallabhbhai-vs-bhagwanbhai-on-20-march-2009"},"modified":"2016-08-10T22:34:26","modified_gmt":"2016-08-10T17:04:26","slug":"qallabhbhai-vs-bhagwanbhai-on-20-march-2009","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/qallabhbhai-vs-bhagwanbhai-on-20-march-2009","title":{"rendered":"Qallabhbhai vs Bhagwanbhai on 20 March, 2009"},"content":{"rendered":"<div class=\"docsource_main\">Gujarat High Court<\/div>\n<div class=\"doc_title\">Qallabhbhai vs Bhagwanbhai on 20 March, 2009<\/div>\n<div class=\"doc_author\">Author: M.R. Shah,&amp;Nbsp;<\/div>\n<pre>   Gujarat High Court Case Information System \n\n  \n  \n    \n\n \n \n    \t      \n         \n\t    \n\t\t   Print\n\t\t\t\t          \n\n  \n\n\n\t \n\t \n\t \n\t \n\t \n\t \n\t \n\t\n\n\n \n\n\n\t \n\nIAAP\/7420\/2007\t 5\/ 5\tJUDGMENT \n \n \n\n\t\n\n \n\nIN\nTHE HIGH COURT OF GUJARAT AT AHMEDABAD\n \n\n \n\n\n \n\nPETN.\nUNDER ARBITRATION ACT No. 74 of 2007\n \n\n \n \nFor\nApproval and Signature:  \n \nHONOURABLE\nMR.JUSTICE M.R. SHAH\n \n \n=========================================================\n\n\n \n\t  \n\t \n\t  \n\t\t \n\t\t\t \n\n1\n\t\t\n\t\t \n\t\t\t \n\nWhether\n\t\t\tReporters of Local Papers may be allowed to see the judgment ?\n\t\t\n\t\n\n \n\t  \n\t \n\t  \n\t\t \n\t\t\t \n\n2\n\t\t\n\t\t \n\t\t\t \n\nTo\n\t\t\tbe referred to the Reporter or not ?\n\t\t\n\t\n\n \n\t  \n\t \n\t  \n\t\t \n\t\t\t \n\n3\n\t\t\n\t\t \n\t\t\t \n\nWhether\n\t\t\ttheir Lordships wish to see the fair copy of the judgment ?\n\t\t\n\t\n\n \n\t  \n\t \n\t  \n\t\t \n\t\t\t \n\n4\n\t\t\n\t\t \n\t\t\t \n\nWhether\n\t\t\tthis case involves a substantial question of law as to the\n\t\t\tinterpretation of the constitution of India, 1950 or any order\n\t\t\tmade thereunder ?\n\t\t\n\t\n\n \n\t  \n\t \n\t  \n\t\t \n\t\t\t \n\n5\n\t\t\n\t\t \n\t\t\t \n\nWhether\n\t\t\tit is to be circulated to the civil judge?\n\t\t\n\t\n\n \n\n=========================================================\n\n\n \n\nQALLABHBHAI\nHIMANTBHAI PATEL - Petitioner(s)\n \n\nVersus\n \n\nBHAGWANBHAI\nNARANBHAI PATEL &amp; 4 - Respondent(s)\n \n\n=========================================================\nAppearance : \nMR\nMK VAKHARIA for Petitioner(s) : 1, \nMR DP\nKINARIWALA for Respondent(s) : 1, \nDELETED for Respondent(s) : 2 -\n5. \n=========================================================\n\n\n \n\t  \n\t \n\t  \n\t\t \n\t\t\t \n\nCORAM\n\t\t\t: \n\t\t\t\n\t\t\n\t\t \n\t\t\t \n\nHONOURABLE\n\t\t\tMR.JUSTICE M.R. SHAH\n\t\t\n\t\n\n \n\nDate\n: 20\/03\/2009 \n\n \n\nORAL\nJUDGMENT<\/pre>\n<p>1.\t\tPresent<br \/>\napplication has been preferred by the petitioner herein   one of<br \/>\nthe defendant of Civil Suit No.68 of 2005 pending in the Court of<br \/>\nlearned Civil Judge (S.D.), Bhavnagar under Section 11 of the<br \/>\nArbitration and Conciliation Act, 1996 to appoint one Shri Odhavji<br \/>\nRavjibhai Monpara and\/or to appoint any other arbitrator with respect<br \/>\nto the dispute between the parties as related to dispute i.e.<br \/>\nspecific performance vis-a-vis the contract involved i.e. agreement<br \/>\nto sale dated 10.11.2004 <\/p>\n<p>2.\t\tIt<br \/>\nis not in dispute that for the very agreement to sale dated<br \/>\n10.11.2004 respondent herein has filed Civil Suit in the Court for<br \/>\nspecific performance of said agreement to sale in which the<br \/>\npetitioner is also one of the defendant. Therefore, it is not in<br \/>\ndispute that in the said suit there are other defendants also who are<br \/>\npartners of partnership firm   Bapasitaram Company of which the<br \/>\npetitioner is also one of the partner. Therefore, in the said suit<br \/>\nsubject matter is disputed agreement to sale of which specific<br \/>\nperformance is sought.  It is not in dispute that other defendants<br \/>\nare not party to the arbitration agreement. It is true that earlier<br \/>\nwhen the application was submitted for appointment of arbitrator, all<br \/>\nthe defendants were joined but subsequently all those other<br \/>\ndefendants were deleted and only the applicant came to be continued<br \/>\nin the arbitration proceedings.  Therefore, the subject matter of the<br \/>\ndispute which is sought to be referred to the arbitrator is subject<br \/>\nmatter of aforesaid Civil Suit. In view of the fact that it is<br \/>\nalleged that some of the defendants to the aforesaid Civil Suit are<br \/>\nnot party to the arbitration agreement and\/or agreement to sale,<br \/>\nentire dispute is not capable of being referred to the arbitrator for<br \/>\narbitration.\n<\/p>\n<p>3.\t\tIdentical<br \/>\nquestion came to be considered by the Hon&#8217;ble Supreme Court in the<br \/>\ncase of  Sukanya Holdings Pvt.Ltd. v\/s. Jayesh H.Pandya<br \/>\nreported in  AIR 2003 SC 2252 (relevant para   7,14<br \/>\nand 15). Aforesaid decision of the Hon&#8217;ble Supreme Court further came<br \/>\nto be considered by the Hon&#8217;ble Supreme Court in another subsequent<br \/>\ndecision in the case of  Atul Singh &amp; Ors. v\/s. Sunil<br \/>\nKumar Singh &amp; Ors. reported in  2008 AIR SCW\n<\/p>\n<p>570. In the case of Sukanya Holdings Pvt.Ltd.<br \/>\n(supra), the Hon&#8217;ble Supreme Court in para 7, 14, 15 and 16<br \/>\nhas observed and held as under :\n<\/p>\n<p> 7.<br \/>\nThe High Court by its judgment and order dated 18-9-2001 rejected<br \/>\napplication under S. 8 of the Act. The Court arrived at the<br \/>\nconclusion that in the suit apart from the relief of dissolution and<br \/>\naccounts, plaintiff has prayed for other reliefs. All the defendants<br \/>\nto the suit are not parties or partners in the partnership firm and<br \/>\nthe terms of the partnership deed including the arbitration clause<br \/>\nare not binding to them. Only part of the subject matter could at the<br \/>\nmost be referred to the arbitration. Further, there is no power<br \/>\nconferred on the Court to add parties who are not parties to the<br \/>\nagreement in the arbitration proceedings. The Court also negatived<br \/>\nthe alternative prayer for referring part of the subject matter in<br \/>\nrespect of those parties who are parties to the partnership agreement<br \/>\nwhich contains arbitral clause. The Court arrived at the conclusion<br \/>\nthat such procedure is not contemplated under the Act. The object and<br \/>\npurpose of the Act is to avoid multiplicity of the proceedings and<br \/>\nnot to allow two forums simultaneously to proceed with the matter.<br \/>\nThat judgment and order is challenged in this appeal.\n<\/p>\n<p>Xxxx-xxx-xxxx<\/p>\n<p>14.<br \/>\nThirdly, there is no provision &#8211; as to what is required to be done in<br \/>\na case where some parties to the suit are not parties to the<br \/>\narbitration agreement. As against this, under S. 24 of the<br \/>\nArbitration Act, 1940, some of the parties to a suit could apply that<br \/>\nthe matters in difference between them be referred to arbitration and<br \/>\nthe Court may refer the same to arbitration provided that the same<br \/>\ncan be separated from the rest of the subject matter of the suit.<br \/>\nSection also provided that the suit would continue so far as it<br \/>\nrelated to parties who have not joined in such application.\n<\/p>\n<p>15.<br \/>\nThe relevant language used in S. 8 is &#8211; &#8220;in a matter which is<br \/>\nthe subject matter of an arbitration agreement.&#8221; Court is<br \/>\nrequired to refer the parties to arbitration. Therefore, the suit<br \/>\nshould be in respect of &#8220;a matter&#8221; which the parties have<br \/>\nagreed to refer and which comes within the ambit of arbitration<br \/>\nagreement. Where, however, a suit is commenced &#8211; &#8220;as to a<br \/>\nmatter&#8221; which lies outside the arbitration agreement and is also<br \/>\nbetween some of the parties who are not parties to the arbitration<br \/>\nagreement, there is no question of application of S. 8. The words &#8216;a<br \/>\nmatter&#8217; indicates entire subject matter of the suit should be subject<br \/>\nto arbitration agreement.\n<\/p>\n<p>16.<br \/>\nThe next question which requires consideration is &#8211; even if there is<br \/>\nno provision for partly referring the dispute to arbitration, whether<br \/>\nsuch a course is possible under Section 8 of the Act? In our view, it<br \/>\nwould be difficult to give an interpretation to Section 8 under which<br \/>\nbifurcation of the cause of action that is to say the subject matter<br \/>\nof the suit or in some cases bifurcation of the suit between parties<br \/>\nwho are parties to the arbitration agreement and others is possible.<br \/>\nThis would be laying down a totally new procedure not contemplated<br \/>\nunder the Act. If bifurcation of the subject matter of a suit was<br \/>\ncontemplated, the legislature would have used appropriate language to<br \/>\npermit such a course. Since there is no such indication in the<br \/>\nlanguage, it follows that bifurcation of the subject matter of an<br \/>\naction brought before a judicial authority is not allowed.\n<\/p>\n<p>4.\t\tMr.K.G.Vakhariya,<br \/>\nlearned Senior Advocate appearing on behalf of the petitioner is not<br \/>\nin a position to show any contrary judgment and decision of the<br \/>\nHon&#8217;ble Supreme Court. In view of above and when the dispute which is<br \/>\nsought to be referred to the Arbitrator is subject matter of Civil<br \/>\nSuit No.68 of 2005 and considering aforesaid decisions of the Hon&#8217;ble<br \/>\nSupreme Court prayer of the petitioner to refer the dispute with<br \/>\nrespect to specific performance of agreement to sale dated 10.11.2004<br \/>\ncannot be accepted and said dispute is not required to be referred to<br \/>\nArbitration and the Arbitrator cannot be appointed.\n<\/p>\n<p>5.\t\tFor<br \/>\nthe reasons stated above, the application deserves to be dismissed<br \/>\nand accordingly it is dismissed.\n<\/p>\n<p>\t\t\t\t\t\t\t[M.R.Shah,J.]<\/p>\n<p>satish<\/p>\n<p>\t\t   \u00a0\u00a0\u00a0<\/p>\n<p>\t\t   Top<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Gujarat High Court Qallabhbhai vs Bhagwanbhai on 20 March, 2009 Author: M.R. Shah,&amp;Nbsp; Gujarat High Court Case Information System Print IAAP\/7420\/2007 5\/ 5 JUDGMENT IN THE HIGH COURT OF GUJARAT AT AHMEDABAD PETN. UNDER ARBITRATION ACT No. 74 of 2007 For Approval and Signature: HONOURABLE MR.JUSTICE M.R. SHAH ========================================================= 1 Whether Reporters of Local Papers [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[16,8],"tags":[],"class_list":["post-142000","post","type-post","status-publish","format-standard","hentry","category-gujarat-high-court","category-high-court"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.0 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Qallabhbhai vs Bhagwanbhai on 20 March, 2009 - Free Judgements of Supreme Court &amp; High Court | Legal India<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.legalindia.com\/judgments\/qallabhbhai-vs-bhagwanbhai-on-20-march-2009\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Qallabhbhai vs Bhagwanbhai on 20 March, 2009 - Free Judgements of Supreme Court &amp; 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