VidhiSangh

Supreme Court of India · 19/08/2020

DECCAN PAPER MILLS CO. LTD. versus REGENCY MAHAVIR PROPERTIES & ORS.

[2020] 13 S.C.R. 427 · 2020 INSC 497

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Summary

Cancellation of a written instrument under Section 31 of the Specific Relief Act is an action in personam and can be arbitrated. Registration of the instrument and the requirement to notify the registering officer do not make the proceeding one binding the world at large. The Court overruled the contrary reasoning in Aliens Developers. Private fraud allegations did not invalidate the existing arbitration agreement, and the appeal against reference of the parties to arbitration was dismissed.

Issues

  1. Whether cancellation under Section 31 of the Specific Relief Act was a non-arbitrable action in rem.
  2. Whether allegations of fraud prevented reference to arbitration in this private development-agreement dispute.

Provisions considered

Held

Result

Appeal dismissed. The District Court’s reference to arbitration and the High Court’s refusal to interfere were left undisturbed.

Judgment PDF: Supreme Court of India, [2020] 13 S.C.R. 427.