Bombay High Court Allows Section 8 Application to Refer Copyright Dispute to Arbitration — Term Sheet Contains Valid Arbitration Agreement. The Court held that the arbitration agreement in the Term Sheet dated 13th June 2012 is valid and referred the disputes between the Plaintiff and Defendant No. 1 to arbitration under Section 8 of the Arbitration and Conciliation Act, 1996.

High Court: Bombay High Court Bench: BOMBAY In Favour of Accused
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Case Note & Summary

The Plaintiff, Eros International Media Limited, filed a copyright infringement suit against Telemax Links India Pvt. Ltd. and other defendants, alleging unauthorized use of its copyrighted film content. The 1st Defendant filed a Notice of Motion under Section 8 of the Arbitration and Conciliation Act, 1996, seeking referral of disputes to arbitration based on an arbitration agreement contained in a Term Sheet dated 13th June 2012. The other defendants supported the application, claiming they used the material under a sub-licence from the 1st Defendant and no longer used it. The Court examined the Term Sheet and found a valid arbitration agreement. The Plaintiff's opposition was not detailed in the provided text. The Court allowed the application, referring the disputes to arbitration and staying the suit.

Headnote

A) Arbitration Law - Section 8 of the Arbitration and Conciliation Act, 1996 - Referral to Arbitration - The 1st Defendant filed an application under Section 8 seeking referral of disputes to arbitration based on an arbitration agreement in a Term Sheet dated 13th June 2012. The Plaintiff opposed, but the Court found the arbitration agreement valid and referred the disputes to arbitration. (Paras 1-2)

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Issue of Consideration

Whether the disputes between the Plaintiff and Defendant No. 1 should be referred to arbitration in terms of the arbitration agreement contained in the Term Sheet dated 13th June 2012.

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Final Decision

The Court allowed the Notice of Motion and referred the disputes between the Plaintiff and Defendant No. 1 to arbitration in terms of the arbitration agreement contained in the Term Sheet dated 13th June 2012.

Law Points

  • Section 8 of the Arbitration and Conciliation Act
  • 1996
  • Arbitration Agreement
  • Referral to Arbitration
  • Copyright Infringement
  • Sub-licence
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Case Details

2016 LawText (BOM) (04) 70

Notice of Motion No. 886 of 2013 in Suit No. 331 of 2013

2016-04-12

G.S. Patel, J

Mr. V. R. Dhond, Senior Advocate with Mr. Riyaz Chagla, Mr. Akshay Patil, Mr. Avesh Kayser, & Ms. Tanuja Liiman for Plaintiff; Dr. Veerendra Tulzapurkar, Senior Advocate with Mr. Amit Jamsandekar, Mrs. Mahua Roy Chowdry, Ms. Akshata Ankolekar, & Ms. Arya Bile for Defendant No.1; Mr. V. R. Kasle for Defendant No.2; Ms. Sejal Shah for Defendant No.7; Mr. Yashodeep Deshmukh with Mr. Sayeed Mulani for Defendant No.8

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Nature of Litigation

Copyright infringement suit and application under Section 8 of the Arbitration and Conciliation Act, 1996 for referral to arbitration.

Remedy Sought

The 1st Defendant sought referral of disputes to arbitration in terms of the arbitration agreement in the Term Sheet dated 13th June 2012.

Filing Reason

The Plaintiff alleged copyright infringement by the Defendants; the 1st Defendant sought arbitration based on the Term Sheet.

Issues

Whether the disputes between the Plaintiff and Defendant No. 1 should be referred to arbitration under Section 8 of the Arbitration and Conciliation Act, 1996 based on the arbitration agreement in the Term Sheet dated 13th June 2012.

Submissions/Arguments

The 1st Defendant argued that the Term Sheet contains an arbitration agreement and all disputes should be referred to arbitration. Defendants Nos. 2 to 8 supported the 1st Defendant's application and agreed to arbitration.

Ratio Decidendi

The Term Sheet dated 13th June 2012 contains a valid arbitration agreement, and therefore, under Section 8 of the Arbitration and Conciliation Act, 1996, the disputes must be referred to arbitration.

Judgment Excerpts

This is the 1st Defendant’s application under Section 8 of the Arbitration and Conciliation Act, 1996. The prayer made is that all the disputes between the Plaintiff and Defendant No. 1 be referred to arbitration in terms of the Arbitration Agreement contained in a Term Sheet dated 13th June 2012.

Procedural History

The Plaintiff filed Suit No. 331 of 2013 for copyright infringement. The 1st Defendant filed Notice of Motion No. 886 of 2013 under Section 8 of the Arbitration and Conciliation Act, 1996 seeking referral to arbitration. The Court heard the motion and allowed it on 12th April 2016.

Acts & Sections

  • Arbitration and Conciliation Act, 1996: Section 8
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