NEW DELHI: The arbitration process involving KK Modi Family Trust will continue in Singapore. Dismissing the two petition regarding arbitration as well as settlement involving the KK Modi Family Trust, the Delhi High Court on Tuesday ruled that it does not have the jurisdiction to adjudicate the plea. It can be adjudicated by the arbitral tribunal relating to its own jurisdiction.
The court also refused to rely on the contention that Lalit Modi was interested in keeping the arbitration proceedings outside the country in order to escape the liability pending in India. "..while exercising Ordinary Original Civil Jurisdiction and has vested such powers only in the Supreme Court under Article 142 and this Court should thus refrain from acting on such considerations," the High Court said.
Two separate pleas were filed by Bina Modi, the wife of late KK Modi, and her children Charu Modi and Samir Modi against Lalit Modi. Both of the pleas prayed for declaration and permanent and mandatory injunction against initiation, continuation of arbitration proceedings initiated by Lalit Modi in Singapore.
They wanted the arbitration to be held in India. The arbitration arose out of a Family Trust Deed executed at London by KK Modi as settlor/managing Trustee and Bina, Lalit, Charu and Samir as Trustees.
According to the deed, which was made in pursuance to an oral family settlement recorded in February, 2006, the 10 members of the KK Modi Family Trust, who are his wife, children and grandchildren, were to receive the share of inheritance.