Disputes under the Trust Act Cannot be Subject Matter of Arbitration

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Dec 31, 2020

Disputes under the Trust Act Cannot be Subject Matter of Arbitration

The Delhi High Court in Dr. Bina Modi v. Lalit Kumar Modi,^[1] relied on Vimal Kishor Shah v. Jayesh Dinesh Shah^[2] and held that the disputes relating to trust, trustees and beneficiaries arising out of a trust deed and the Indian Trusts Act, 1882 are not capable of being decided by an arbitrator despite the existence of an arbitration agreement to that effect between the parties. It was further held that the Court would have jurisdiction to grant an anti-arbitration injunction where the party seeking the injunction can demonstrate that the agreement is null and void, inoperative or incapable of being performed.

[1] 2020 SCC Online Del 1678

[2] (2016) 8 SCC 788

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