After the Jammu Development Authority served notice to demolish the palatial bungalow, Mamta Singh wife of ex-Deputy Chief Minister of BJP Dr. Nirmal Singh approached court against the notice.
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[1] recently held that the issue whether an agreement which contains an arbitration clause has or has not been novated, cannot be decided by the Courts at the Section 11 stage. The judgment is a step forward, since it clarifies the narrow scope of judicial intervention at the pre-reference stage.
Background Facts The issue arose out of a Memorandum of Understanding executed between members of the Prakash family (i.e. the Appellant and the Respondents), who collectively held the entire share-holding of ANI Media Private Ltd. ( the Company ). The MoU
inter alia provided that in the event any members of the Prakash family were desirous of selling / bequeathing their shares, the same shall be offered to the Appellant. The MoU contained an arbitration clause, which provided for resolution of disputes by a sole arbitrator.