Published on: April 18, 2022 at 21:12 IST
Calcutta High Court ruled that an Arbitration Agreement won’t be discharged by the death of the party and would be enforceable by or against Legal Representatives of the Deceased.
According to the Bench of Chief Justice Prakash Srivastav even though the Legal Representatives were not Signatories to the Arbitration Agreement but as Legal Representatives of the Signatory to the Arbitration Agreement, they were bound by the Agreement.
The applicant had executed a partnership for running a pathological lab. After co-partner passed away, some dispute arises between the applicant and the Legal heirs of the deceased co-partner.
The Applicant approached the High Court and filed an Application under Section 11 of the Arbitration and Conciliation Act of 1996 before the Calcutta High Court for appointing the Arbitrator and resolving the disputes.
The Court noted that Section 40 of the Arbitration Act clearly states that an Arbitration Agreement won’t be discharged by the death of a party and it will also be enforceable against Legal Representatives of the deceased.
The Court referred to Ravi Prakash Goel vs Chandra Prakash Goel & Anr, and ruled that even though the Respondents were not Signatories to the said Arbitration Agreement, but as they are Legal Representatives of the co-partner, they are bound by the Arbitration Agreement.
Therefore, the Court allowed the Applicant’s application and appointed an Arbitrator.