No Bar To Avail Remedy U/S 9 Of Arbitration Act Even Against Non-Parties To Subject Matter Of Dispute: Delhi High Court
Live LawThe Delhi High Court bench of Justice Neena Bansal Krishna has held that the Plaintiffs are not barred from availing the remedy under Section 9 of the Arbitration and Conciliation Act, 1996 even against individual/entities who are not party to the Family Settlement out of which the dispute arose. The application for ad interim injunction was held to be not maintainable due to pending Arbitration proceedings in regard to the Family Settlement and a pending Application under Section 12A of the Commercial Courts Act. Mr. Siddharth Yadav, Senior Advocate on behalf of Defendant Nos.1 to 3 opposed the maintainability of the Suit on the following grounds: The entire dispute in regard to the Family Settlement inter-se the Plaintiffs and Defendant Nos.4 to 12 is pending before the Arbitrator. The court observed that even though Defendant Nos.1 to 3 may not be a party to the Family Settlement but because the Subject properties are subject-matter of adjudication to which Defendant Nos.4 to 7 are a party, there is no bar to avail the remedy under Section 9 of the Arbitration and Conciliation Act, 1996 even against Defendant Nos.1 to 3 as has been held in the case of Blue Coast Infrastructure Development P. Ltd vs. Blue Coast Hotels Ltd and Anr, AIR Online 2020 Del.