Trust disputes are not arbitrable in India

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Allowing an appeal in Shri Vimal Shah & Ors v Mr Jayesh Dinesh Shah & Ors, the Supreme Court has held that disputes relating to trusts, trustees and beneficiaries arising out of the trust deed and the Indian Trusts Act, 1882, are not capable of being decided by an arbitrator despite the existence of an arbitration clause in the trust deed.

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The dispute digest is compiled by Bhasin & Co, Advocates, a corporate law firm based in New Delhi.

The authors can be contacted at lbhasin@bhasinco.in or lbhasin@gmail.com. Readers should not act on the basis of this information without seeking professional legal advice.