Chennai:
Madras High court has dismissed the plea by chief executive of The Federation of Motor Sports Clubs of India (FMSCI) Rajan Syal stating that the suit filed by Shrikant Karani of Sportscraft is not maintainable as there is an arbitration agreement between the two.
The decision of the High Court comes after Shrikant Karani of Sportscarft questioned the decision of the FMSCI to introduce a change in its regulations that allowed only non-profit clubs to be members of its council in the court.
Dismissing the plea by Syal, Justice R S Ramanathan observed that the issue involved in this case is whether the Federation of Motor Sports Clubs of India and Sportscraft can amend the criteria regarding qualification of a member.
“It cannot be decided in arbitration and it has to be decided in a court,” he said.
“There is no clear proof of existence of an arbitration agreement between the parties and the clause in the annual return will not have the effect of agreeing to refer any dispute to arbitration in the absence of any clause for arbitration in the Articles of association and the issue involved in this suit is not an arbitral issue. The application to refer the dispute to arbitration cannot be sustained,” he observed.
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