BOOZ-ALLEN & HAMILTON INC. versus SBI HOME FINANCE LTD. & ORS.

Citation: [2011] 7 S.C.R. 310 · Decided: 15-04-2011 · Supreme Court of India · Bench: R.V. RAVEENDRAN · Disposal: Dismissed

Cited by 18 judgment(s) · see the full citation network in Lexace

Judgment (excerpt)

A 
B 
(2011] 7 S.C.R. 310 
BOOZ-ALLEN & HAMILTON INC. 
v. 
SBI HOME FINANCE LTD. & ORS. 
(Civil Appeal No. 5440 of 2002) 
APRIL 15, 2011 
[R.V. RAVEENDRAN AND J.M. PANCHAL, JJ.] 
Arbitration and Conciliation Act, 1996: 
c 
s.8 - Application filed by defendant u/s.8 in a pending 
civil suit praying that the parties to the suit be referred to 
arbitration - Parties to the suit were parties to an agreement 
which contained a provision for settlement of disputes by 
arbitration - Held: Even if there is an arbitration agreement 
o between the parties, and even if the dispute is covered by the 
arbitration agreement, the court where the civil suit is pending, 
will refuse an application uls. 8, to refer the parties to 
arbitration, if the subject matter of the suit is capable of 
adjudication only by a public forum or the relief claimed can 
E only be granted by a special court or Tribunal. 
s. 8 -
First statement on substance of dispute -
Defendant filed detailed affidavit opposing interim injunction 
application filed by plaintiff in a pending suit - Later the 
defendant filed application u/s. 8 praying that the parties to the 
F suit be referred to arbitration - Whether the counter affidavit 
filed by the defendant, in regard to the notice of motion for 
temporary injunction, amounted to submission of first 
statement on the substance of the dispute, and therefore the 
defendant lost the right to seek reference to arbitration - Held: 
G Not only filing of the written statement in a suit, but filing of 
any statement, application, affidavit filed by a defendant prior 
to the filing of the written statement will be construed as 
'submission of a statement on the substance of the dispute', 
if by filing such statement/application/affidavit, the defendant 
H 
310 
BOOZ-ALLEN & HAMILTON INC. v. SBI HOME 
311 
FINANCE LTD. & ORS. 
shows his intention to submit himself to the jurisdiction of the 
A 
court and waive his right to seek reference to arbitration - But 
filing of a reply by a defendant, to an application for temporary 
injunction/attachment before judgment/ appointment of 
Receiver, cannot be considered as submission of a statement 
on the substance of the dispute, as that is done to avoid an 
B 
interim order being made against him - In the instant case, 
the counter affidavit filed by the appellant in reply to the notice 
of motion (seeking appointment of a receiver and grant of a 
temporary injunction) clearly stated that the reply affidavit was 
being filed for the limited purpose of opposing the interim c 
relief - Even in the absence of such a disclaimer, filing a 
detailed objection to an application for interim relief cannot 
be considered fo be submission of a statement on the 
substance of the dispute resulting in submitting oneself to the 
jurisdiction of the court. 
D 
s. 8 - Defendant filed detailed affidavit opposing interim 
injunction application filed by piaintiff in a pending suit - 20 
. months thereafter, the defendant filed application u/s. 8 
praying that the parties to the suit be referred to arbitration -
Whether the application u/s. 8 was liable to be rejected as it 
E 
was filed nearly 20 months after entering appearance in the 
suit - Held: Though s. 8 of the Act does not prescribe any time 
limit for filing an application under that section, and only 
states that. the application uls. 8 should be filed before 
submission of the first statement on the substance of the 
F 
dispute, the scheme of the Act and the provisions of the 
section clearly indicate that the application thereunder should 
be made at the earliest - A party who willingly participates in 
the proceedings in the suit and subjects himself to the 
jurisdiction of the court cannot subsequently tum round and 
G 
say that the parties should be referred to arbitration in view 
of the existence of an arbitration agreement- Whether a party 
has waived his right to seek arbitration and subjected himself 
to the jurisdiction of the court, depends upon the conduct of 
such party in the suit - When plaintiffs file applications for H 
312 
SUPREME COURT REPORTS 
[2011] 7 $.C.R. 
A interim relief like appointment of a receiver or grant of a 
temporary injunction, the defendants have to contest the 
application - Such contest may even lead to appeals and 
revisions where there may be even stay of further proceedings . 
in the suit - If supplemental proceedings like applications for 
B temporary injunction on appointment of Receiver, have

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