Disputes Arising Out of Trust Deeds Are Not Arbitrable

The Supreme Court in its recent decision in Shri Vimal Kishor Shah & Ors v. Mr. Jayesh Dinesh Shah & Ors. [Civil Appeal No.8164/2016] has carved out a seventh category of non-arbitrable disputes, namely cases arising out of trust deeds and the Trust Act 1882. Though the Trust Act does not provide any express bar in relation to applicability of other laws for deciding the disputes arising under the Trust Act yet, the Supreme Court ruled that there exists an implied bar of exclusion of applicability of the Arbitration Act for deciding the disputes relating to trust, trustees and beneficiaries through private arbitration.  This reasoning applied by the Supreme Court in reaching upon its decision may lead to the creation of additional categories of disputes which could be considered non-arbitrable.

 

September 3rd, 2016