Case Name : Vidya Drolia & Ors vs Durga Trading Corporation Case Reference: (2021) 2 SCC 1; (2020) 11 SCR 1001 Case Number: CA No. 2402/2019 Court: Supreme Court Bench: 03 Coram: NV Ramana (concurring), Sanjiv Khanna (Author), Krishna Murari Date: 14.12.2020
On non-arbitrability (implicit non-arbitrability). When expressly prohibited or otherwise. Four-fold test
- Cause of action and subject matter of dispute relates to actions in rem; and do not pertain to subordinate rights in personam that arise from rights in rem
- Cause of action and subject matter of dispute affects third-party rights, have erga omnes effect
- Cause of action and subject matter of the dispute relates to inalienable sovereign and public interest functions of the State
- Subject matter of the dispute is expressly or by necessary implication non-arbitrable as per mandatory statutes
Difference between non-arbitrable claim and non-arbitrable subject matter.
Bifurcation of subject matter or causes of action in suit is not permissible.
No provision in A&C Act to compel third persons who have not exercised option to give up right to access to courts to be bound by arbitration clause.
Refer also:
Judgment name
See also: [A&C Act, 1996 - Section 2] A&C Act, 1996 - Section 7 A&C Act, 1996 - Section 8 A&C Act, 1996 - Section 11 A&C Act, 1996 - Section 16
Vidya Drolia vs Durga Trading Corporation, (2020) 11 SCR 1001 1.pdf