Arbitration & Mediation (ADR) Course Preview
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<p class="banner-heading-text-two-line"><span>Legal Representative S.2(1)(g)</span><br><span class="banner-sub-heading">Definitions</span></p>
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<p><span class="padded-dropcap">A </span>legal representative, as defined under Section 2(1)(g) of the Arbitration and Conciliation Act, 1996, refers to a person who, in law, represents the estate of a deceased individual. This definition gains significance as Section 40 of the Act explicitly states that the death of a party does not discharge an arbitration agreement and remains enforceable by or against the deceased's legal representatives. Additionally, Section 35 provides that an arbitral award is binding not only on the parties but also on persons claiming under them, including legal representatives. The Supreme Court in Sumitomo Corp. v. CDC Financial Services (Mauritius) Ltd. (2008) held that legal representatives, as successors to a deceased party’s estate, inherit the rights and obligations under the arbitration agreement and are entitled to enforce or be bound by the arbitral award, provided the cause of action survives.</p>
<p><strong>Ravi Prakash Goel v. Chandra Prakash Goel, (2008) 13 SCC 667 : 2007 SCC OnLine SC 404 at page 675</strong></p>
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<li>The definition of “legal representative” became necessary because such representatives are bound by and also entitled to enforce an arbitration agreement. In our opinion, a person who has the right to represent the estate of the deceased person occupies the status of a legal person (sic representative). Section 35 of the 1996 Act which imparts the touch of finality to an arbitral award says that the award shall have binding effect on the “parties and persons claiming under them”. Persons claiming under the rights of a deceased person are the personal representatives of the deceased party and they have the right to enforce the award and are also bound by it. The arbitration agreement is enforceable by or against the legal representative of a deceased party provided the right to sue in respect of the cause of action survives.</li>
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