Search The Civil Litigator

Monday, June 28, 2010

oppression and mismanagement 397 / 398 and arbitration

Remedy circumscribed by 397/398 cannot be a subject of arbitration


OP Gupta v. Shiv General Finance Ltd, 1977 (47) Comp Cas 279 (Delhi)
Merely because there is an article in the articles of association of the company to the effect that any dispute between the company on the one hand and its members ofn the other will be referred to arbitration, the court will not stay a petition under Section 397/398.


The provisions of sections 397/398 and of sections 434 give exclusive jurisdiction to the court and the matters dealt with thereby cannot be referred to arbitration.

See also: 
 Smt. Sudershan Chopra v. CLB, 2004  (54?) Comp Cas 429 (P&H)
Labels: , ,

1 comment:

  1. Talha Abdul RahmanSeptember 30, 2010 at 10:03 PM

    But see contrary reasoned decision of CLB in
    Bhadresh Shah v. Magotteaux International, 2002 111 Comp Cas 220 (CLB)

    ReplyDelete

Subscribe to: Post Comments (Atom)