Introduction:
Sanjiv Prakash v. Seema Kukreja &
Ors.
1, the Delhi High Court has
reiterated that novation of an agreement would necessarily result
in destruction of the arbitration clause contained therein. In this
regard, it was observed that an arbitration agreement being a
creation of an agreement may be destroyed by agreement.
Facts of the case:
Respondent No. 3 had incorporated a company in 1971, under the
name of Asian Films Laboratories Private Limited, which was
subsequently renamed as ANI Media Private Limited in 1997
( Company ). The shareholders of the
said Company were Respondent No. 3 s son
( Petitioner ) and his daughter and wife
( Respondent No. 1 and