Summary
Owners sought accounts and distribution of lease rentals from their development society through proceedings under the Societies Registration Act. The Court held that the dispute arose from the development agreements and addendum and fell within its arbitration clause. Reading that clause as a whole, the procedural subclauses did not restrict the broad agreement to arbitrate disputes connected with the agreements. The Section 8 applications were allowed.
Issues
- Whether rental-sharing disputes between owners and their society fell within the addendum’s arbitration clause.
Held
- The society’s authority to receive and distribute rent, after addressing loan liabilities, arose from the addendum. The owners’ rental claims therefore related to and were connected with the development agreements and addendum. (¶¶ 6, 7.2)
- Clause 19 as a whole required arbitration of disputes among the parties arising out of, connected with or relating to the agreement. Its subclauses prescribed different procedures for particular configurations of parties rather than excluding the present dispute. (¶¶ 7, 7.1, 7.2, 7.3)
Result
All appeals were allowed without costs. The High Court and District Judge orders were set aside, the Section 8 applications allowed, and the disputes directed to arbitration.