Dismissing a petition in Apex Frp Chemicals Private Limited and Anr v Om Prakash Gupta and Ors, Delhi High Court recently held that issues of oppression and mismanagement relating to a company cannot be the subject matter of an arbitration.
Apex Frp Chemicals was challenging an order of the Company Law Board (CLB) passed in 2015 dismissing its application under section 8 of Arbitration and Conciliation Act, 1996, which provides that a judicial authority shall, on the basis of an arbitration agreement between parties, direct the parties to go for arbitration.
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.
