Prathiba M. Singh JUDGMENT
Prathiba M. Singh, J.
1. This judgment has been pronounced through video conferencing.
Brief Background
2. Disputes arose between two branches of one family-
• One led by Sh. Arun Kumar Bhalotia-Respondent No. 1 and his family members consisting of his wife-Smt. Sunita Bhalotia- Respondent No. 2 and two sons, namely, Sh. Anant Bhalotia and Sh. Ayush Bhalotia, (Respondents No. 3 and 4 respectively) and
• The second branch led by his brother-Sh. Gopal Kumar Bhalotia (Respondent No. 5) and his family consisting of his wife-Smt. Sunita Bhalotia (Respondent No. 6) and two children, namely, Smt. Smriti Bhalotia (Respondent No. 7) and Sh. Anshul Bhalotia (Respondent No. 8).
3. CS (OS) 384/2017 titled Sh. Arun Kumar Bhalotia & Anr. Vs. Sh. Gopal Kumar Bhalotia was filed before this Court, in which an application was moved by Respondent No. 5 (Sh. Gopal Kumar Bhalotia) under Section 8 of the Arbitration and Conciliation Act, 1996 (hereinafter 'the Act').
4. Vide order dated 9th January, 2018, the ld. Single Judge of this Court, referred the disputes to Arbitration by a sole Arbitrator. The relevant portion of the said order reads as under:
"1. After hearing the counsels for the parties, this suit is disposed of by referring the disputes in the present suit as also disputes which may arise in any manner with respect to or connected with the family settlement/partition dated 15.7.2009, to the Arbitration of Shri B.B. Chaudhary, District & Sessions Judge (Retired) Mobile No. 9910384611.
2. Counsels for the parties also agree that irrespective of the wording of the arbitration clause in the family settlement/partition dated. 15.7.2009, the Arbitrator hereby appointed to determine the disputes between the parties connected to or with respect to the family settlement/partition dated 15.7.2009 will proceed in accordance with the procedure and other aspects as specified under the Arbitration &Conciliation Act, 1996. It is further clarified that parties will be entitled to file their claims and counter claims before the Arbitrator and which will not be restricted to the pleadings as raised in the present suit and claims and counter-claims to be filed can encompass all reliefs and claims which arise pursuant to the family settlement/partition deed dated 15.7.2009...."
5. Pursuant to the above reference, claim petition was filed before the Arbitrator and counter claim was raised by the Respondent No. 5 (Shri Gopal Kumar Bhalotia).In the arbitral proceedings, the Petitioners herein (namely, Shri Surender Kumar Singhal, Shri Ramkishan Aggarwal, Shri Rajesh Kumar, Shri Kishore Kumar Aggarwal, Smt. Chetna Bansal and Shri Lovelesh Aggarwal) were arrayed as Respondents No. 5 to 10 and vide order dated 11th April, 2019, notice was issued to the said Respondents for appearing before the Arbitrator. On 16th April, 2019, notice was served in the arbitration proceedings to the Petitioners.
6. The Petitioners herein then filed an application under Section 16 of the Act and raised an objection that the Tribunal does not have any jurisdiction to adjudicate the claims against the Petitioners. One of the grounds raised in the application was that the Petitioners are bonafide purchasers of one of the properties and have valid title to the same and that the arbitration clause does not bind them. It was stated in the application that the Petitioners were neither party to the suit in the High Court nor a party to the arbitration agreement and since they are completely third parties, they cannot be compelled to participate in the arbitration proceedings. Thus, a prayer was made to dismiss the arbitration proceedings qua the Peti........