Case Note & Summary
The applicant, Ashwin Maganlal Savani, filed an application under Section 11 of the Arbitration and Conciliation Act, 1996, seeking appointment of a Sole Arbitrator to resolve disputes with the respondent, Himadri Davda, arising out of the last Will and Testament of their deceased father, Maganlal Savani. The father died on 25.05.2017, leaving a Will dated 02.07.2016, which appointed the applicant as the Sole Executor and trustee. Probate was granted by the Bombay High Court on 26.03.2018. Subsequently, the parties entered into three agreements: a Deed of Family Understanding, a Deed of Gift, and a Declaration-cum-Possession receipt, all dated 02.12.2017, to administer part of the estate. The applicant alleged that the respondent had accessed a joint bank locker after the father's death and removed jewellery belonging to the estate, which under a residual clause of the Will was bequeathed to the applicant. The respondent opposed the application, contending that the arbitration clause in the Will was not an arbitration agreement between the parties and that the disputes were not arbitrable. The Court, after hearing both sides, held that the arbitration clause in the Will constituted an arbitration agreement between the heirs and that the disputes fell within its scope. The Court appointed a retired judge of the Bombay High Court as the Sole Arbitrator to adjudicate the disputes, including the issue of the jewellery and other claims arising from the Will and the subsequent agreements.
Headnote
A) Arbitration Law - Appointment of Arbitrator - Section 11 of Arbitration and Conciliation Act, 1996 - Arbitration Clause in Will - The applicant, a surviving heir and executor, sought appointment of a sole arbitrator under an arbitration clause in the last Will of the deceased father to resolve disputes with the respondent, another surviving heir, regarding alleged removal of jewellery from a bank locker. The Court held that the arbitration clause in the Will constitutes an arbitration agreement between the parties and appointed a sole arbitrator to adjudicate the disputes. (Paras 1-22)
Issue of Consideration
Whether an arbitration clause contained in a Will can be invoked for disputes between the surviving heirs regarding the estate, and whether the Court should appoint a Sole Arbitrator under Section 11 of the Arbitration and Conciliation Act, 1996.
Final Decision
The Court allowed the application and appointed a Sole Arbitrator (a retired judge of the Bombay High Court) to adjudicate the disputes between the parties arising from the Will and the subsequent agreements.
Law Points
- Arbitration clause in Will
- Appointment of arbitrator under Section 11 of Arbitration and Conciliation Act
- 1996
- Existence of arbitration agreement
- Disputes between heirs
- Executor and trustee
