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Supreme Court of India

Sanjiv Prakash v. Seema Kukreja and Ors.

Neutral citation
Reported as [2021] 4 S.C.R. 44
Bench R.F. Nariman J.
Decided 6 April 2021

INSC stands for INDIAN SUPREME COURT. A neutral citation scheme assigned by the Court itself, so a judgment can be cited without depending on a commercial law reporter. INSC is the neutral citation scheme assigned by the Supreme Court, so a judgment can be cited without depending on a commercial law reporter.

What the Court ordered

We hold that the expression “existence of an arbitration agreement” in Section 11 of the Arbitration Act, would include aspect of validity of an arbitration agreement, albeit th e court at the referral stage would apply the prima facie test on the basis of principles set out in this judgment.

Judgment, page 34

From the headnote

Arbitration and Conciliation Act, 1996: s. 11 – Power of court u/s. 11 – Scope of – Novation of contract – Plea of – On facts, father formed a private company from his personal f unds and distributed the shares among his family members wit hout any consideration – Foreign company approached the fathe r for long- term equity investment and collaboration – Pursuant thereto, fa mily members-appellant and respondents entered into Memoran dum of Understanding(MoU), wherein disputes arising in con nection thereto were to be referred to an arbitrator – Ther eafter, a Shareholders’ Agreement (SHA)

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