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ARTICLE · 19 SEPTEMBER 2019

Invocation Of Arbitration Clause Post Compromise Decree

King, Stubb & Kasiva
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The bench consisting of Justice R. Banumati and Justice A.S. Bopanna of Hon'ble Supreme Court of India in judgment dated 30th July 2019, in the matter of Zeninth Drugs & Allied Agencies Pvt. Ltd. v. Nicholas Primal India Pvt. Ltd. ...

IndiaLitigation, Mediation & Arbitration
Priyanka Ajjannavar
Priyanka Ajjannavar
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The bench consisting of Justice R. Banumati and Justice A.S. Bopanna of Hon'ble Supreme Court of India in judgment dated 30th July 2019, in the matter of Zeninth Drugs & Allied Agencies Pvt. Ltd. v. Nicholas Primal India Pvt. Ltd.1 held that "since there is no arbitration clause relating to the dispute, hence plea could be decided only by the Civil Court, without invoking the Arbitration clause under the agreement".

FACTS

The Zenith Drugs & Allied Agencies Pvt. Ltd ("Appellant Company") ) is a company involved in various types of agency businesses including the business of clearing and forwarding agents, freight contractors, etc.Rhone Poulene India Limited (RPIL) vide agreement dated 01.05.1997 appointed the Appellant Company as its clearing and forwarding agent wherein clause No. 17 of the said agreement contained a clause on arbitration.

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