Bypass the Arbitration Agreement and run to Court? Sorry you can’t!!

In a recent case a Shareholders Agreement stipulated that if a party’s shareholding falls below 15% the party would not have any rights left with it under the Agreement. Where the shareholding actually fell below the stipulated figure and the issue was whether the Arbitration Agreement could be invoked.

The Supreme Court held the Law is well-settled in the matter that even if the whole Agreement is terminated, the Arbitration Agreement would still remain since the Arbitration Agreement stands independent of the Shareholders Agreement.