Can disputes before the Company Law Board (CLB) in proceedings for oppression and mismanagement, under sections 397-398 and 402 of the Companies Act, 1956, be referred to arbitration?
In Rakesh Malhotra v Rajinder Malhotra, Bombay High Court recently held that such disputes “are not capable of being referred to arbitration, having regard to the nature and scope of the power invoked”. The court said this was subject to the caveat that an oppression and mismanagement petition that is merely “dressed up” in order to oust an arbitration clause, or a petition that is vexatious, oppressive or mala fide cannot be permitted to succeed.
You must be a
subscribersubscribersubscribersubscriber
to read this content, please
subscribesubscribesubscribesubscribe
today.
For group subscribers, please click here to access.
Interested in group subscription? Please contact us.
你需要登录去解锁本文内容。欢迎注册账号。如果想阅读月刊所有文章，欢迎成为我们的订阅会员成为我们的订阅会员。
The dispute digest is compiled by Bhasin & Co, Advocates, a corporate law firm based in New Delhi. The authors can be contacted at lbhasin@bhasinco.in or lbhasin@gmail.com. Readers should not act on the basis of this information without seeking professional legal advice.
