07 Jul 2026 12:01 PM

Interim Protection -- Rights under Family Settlement -- Termination of connected agreement does not extinguish rights, injury held irreparable

(i) Arbitration and Conciliation Act, 1996, S.9 -- Interim Protection -- Rights under Family Settlement -- Where several connected agreements form part of one composite family settlement, an arbitration clause in the parent agreement can extend to disputes arising under the other agreements, even if some parties to those agreements are non-signatories to the clause. Principles governing arbitration clauses in purely commercial contracts do not automatically apply to such settlements. (ii) Arbitration and Conciliation Act, 1996, S.9 -- Interim Protection -- Rights under Family Settlement -- Rights claimed under a long-standing family settlement are not extinguished merely because an agreement implementing those rights, such as a registered user agreement, is terminated. Interim protection preserving the existing position pending arbitration does not create any new right and is distinct from reviving a terminated licence. (iii) Arbitration and Conciliation Act, 1996, S.9 -- Interim Protection -- Rights under Family Settlement -- Injury from discontinuance of a brand used continuously for over three decades is irreparable, since goodwill built through consumer confidence and market reputation cannot be restored by a monetary award even if the claimant later succeeds in arbitration. Such injury is not purely financial and justifies interim protection.

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