Supreme Court sends Lalit Modi's arbitration dispute back to Delhi High Court

The Supreme Court today refused to vacate the stay imposed on arbitration proceedings concerning Lalit Modi and the family property belonging to KK Modi Trust.

A Division Bench of the Delhi High Court had stayed the arbitration proceedings between Lalit Modi and his mother and siblings earlier. This was after a single Judge bench had dismissed the plea filed by Bina Modi and others.

Senior Counsel Abhishek Manu Singhvi, representing Lalit Modi, told the vacation Bench of the Supreme Court comprising Justices Ashok Bhushan and Surya Kant that the High Court had passed the order for stay without hearing him. This, despite having filed a caveat, Singhvi argued.

Therefore, a vacation of this stay was sought by Singhvi who argued that an international arbitration proceedings could not have been stayed. Senior counsel Kapil Sibal, who represented Lalit Modi's mother and siblings contested the proceedings being international proceedings.

The date fixed by the High Court for hearing in the case was end of March.

The Supreme Court today refused to entertain the plea and granted liberty to Singhvi to seek an advancement of the date of hearing before the High Court on March 11.

The arbitration has arisen out of a Family Trust Deed executed at London by KK Modi as settlor/managing Trustee and Bina, Lalit, Charu and Samir as Trustees.

It was contended before the Delhi High Court by Lalit Modi that all the assets were to be sold, whereas Bina Modi and others had contended that on a true construction of the Trust Deed, no such sale had been triggered.