Mere Arbitration Clause Does Not Mandate Reference to Arbitration: NCLT Bengaluru

Vishrutha Dhruva Vs Air Works UK Engineering Limited (NCLT Bengaluru) The National Company Law Tribunal (NCLT), Bengaluru Bench, dismissed an application seeking reference of proceedings to arbitration under Section 45 of the Arbitration and Conciliation Act, 1996, holding that the mere existence of an arbitration clause in a Shareholders’ Agreement (SHA) does not automatically require disputes to be referred to arbitration. The applicants contended that the main petition filed under Section 213 of the Companies Act, 2013 was essentially based on alleged breaches of the Shareholders’ Agree...