Appellant’s Appeal Dismissed as Respondent Withdraws Application for Arbitration.


18 October 2024 Arbitration >> Corporate Law   |   Copyright Laws in India >> Intellectual Property Rights  

The appeal in the matter of M/s. Sultan Chand and Sons Pvt. Ltd. Vs Kartik Sharma challenges an order passed on 19th September 2024 by a Single Judge, which allowed the Respondent-Defendant to withdraw their application for referring a dispute to arbitration under Section 8 of the Arbitration and Conciliation Act, 1996. The Appellant had entered into a publication agreement with the Respondent for certain books, which contained an arbitration clause. The Appellant later sued the Respondent for damages, claiming the books were plagiarized, while the Respondent filed counterclaims, including a request for arbitration.

 

 

Initially, both parties agreed to refer the matter to arbitration, but the Respondent later withdrew the request. The Appellant argued that Section 8 of the Act mandates referral to arbitration, citing various judgments to support their claim. However, the Court found that the Appellant had explicitly stated that the disputes related to a third book, which was not covered by any agreement, and therefore, the arbitration clause did not apply. Additionally, the Court noted that the right to request arbitration under Section 8 is solely for the defendant, who can waive it.

In conclusion, since the Respondent voluntarily withdrew their application for arbitration, the Court ruled that the Appellant had no legal grounds to oppose this withdrawal. As a result, the appeal was dismissed.


Section 8, Arbitration and Conciliation Act - 1996  

Arbitration and Conciliation Act, 1996  

Section 63, Copyright Act - 1957    

Copyright Act, 1957  

Section 28, Indian Contract Act - 1872  

Indian Contract Act, 1872