Between The Lines... September, 2016

I. Disputes relating to trust, trustees and beneficiaries arising out of the Trust Deed and the Trust Act not arbitrable: Supreme Court

Adding one more kind of dispute to the list of non-arbitrable disputes, the Supreme Court of India in the case of Shri Vimal Kishor Shah and Ors. (the "Appellants") vs. Mr. Jayesh Dinesh Shah & Ors. (the "Respondents") (decided on August 17, 2016) has held that any dispute pertaining to affairs of a trust including the disputes inter se trustee and beneficiary in relation to their right, duties, obligations, removal, etc. cannot be decided by an arbitrator under the Arbitration and Conciliation Act, 1996 (the "Arbitration Act"). The Civil Court will have to decide such disputes as specified under the Indian Trust Act, 1882 (the "Trust Act").