Law: Arbitration Act (X of 1940)

Section: 2(c), 18, 34

Law: Companies Act, 2017

Section: 126, 127, 278

(a)   Companies Act (XIX of 2017)---

----Ss. 126, 127 & 278---Arbitration Act (X of 1940), Ss. 18 & 34---Pro-arbitration approach of Courts---Arbitration---Filing of award---Dispute pertaining to transfer of shares was initiated before High Court where proceedings were neither stayed under Arbitration Act, 1940 nor the matter was referred to Arbitrator---Validity---In addition to Supreme Court adopting a pro-arbitration approach, stance of referring for arbitration was also bolstered by the framework of Companies Act, 2017, which, through its Preamble, affirmatively advocated for alternative mechanisms to ensure expeditious resolution of corporate disputes---Companies were explicitly encouraged under section 278 of Companies Act, 2017 to refer any existing or future disputes, whether between companies or involving any other persons, to arbitration---Supreme Court with pro-arbitration approach and with the consensus of parties referred the matter to Arbitrator---Supreme Court set aside order passed by High Court and accepted application under section 34 of Arbitration Act, 1940--Supreme Court stayed proceedings under sections 126 and 127 of Companies Act, 2017 concerning alleged fraudulent transfer of shares and rectification of register of members (shareholders)---Supreme Court directed that award made by Arbitrator would be filed in High Court in accordance with the proceedings under Arbitration Act, 1940, as the matter fell exclusively within the jurisdiction of Court established under the Companies Act, 2017---Appeal was allowed.