Justice G.K. Ilantthiraiyan

Whether Legal heir of a party to the agreement can challenge the Arbitration Award as a third party under Article 227 of the Constitution of India? And Whether the Arbitration Award can be challenged under Article 227 when there is statutory right as contemplated under Section 34 of Arbitration and Conciliation Act, 1996? – V.K. John Vs. S.Mukanchand Bothra & HUF – High Madras Court

Hon’ble High Court held that it is clear that from Section 2(g) and Section 40 of the Arbitration and Conciliation Act, 1996, an arbitration agreement shall not be discharged by death of any party and it shall not be terminated by death of any party. It is also clear that the agreement can be enforceable by or against the legal representatives of the deceased. A person, who has the right to represent the estate of deceased person occupies the status of a legal person. Section 35 of the Arbitration and Conciliation Act, 1996 which imparts the touch of finality to an arbitral award says that the award shall have binding effect on the parties and persons claiming under them. Persons claiming under the rights of a deceased person are the personal representative of the deceased party and they have the right to enforce the award and are also bound by it. The arbitration agreement is enforceable by or against the legal representative of a deceased party provided the right to sue in respect of the cause of action survives.

Further, it has held that the Arbitration Award passed by the sole Arbitrator has been now challenged under Article 227 of the Constitution of India. It is not maintainable when there is statutory remedy available under Section 34 of the Arbitration and Conciliation Act, 1996.

Whether Legal heir of a party to the agreement can challenge the Arbitration Award as a third party under Article 227 of the Constitution of India? And Whether the Arbitration Award can be challenged under Article 227 when there is statutory right as contemplated under Section 34 of Arbitration and Conciliation Act, 1996? – V.K. John Vs. S.Mukanchand Bothra & HUF – High Madras Court Read Post »

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