The Supreme Court in the matter of Sushma Shivkumar Daga vs. Madhurkumar Ramkrishnaji Bajaj., allowed arbitration between the parties in a property dispute based on the broad language of the arbitration clause in the Tripartite Agreements. The Court rejected the argument that since the suit was for cancellation of a deed, the dispute was not arbitrable, as the action was in rem.  The Apex Court held that cancellation of a deed was an action in personam and hence arbitrable.

The Court observed that the tripartite agreements executed between the parties formed the basis of all subsequent agreements entered between the parties, including the ones that gave rise to the present dispute.

In the instant case, cancellation of the Conveyance Deed and registered Development Agreements was sought. Pertinently, there was no arbitration clause in the Conveyance Deed and Development Agreements. However, considering that these agreements find their source in the two Tripartite Agreements, which, in turn, contained a broad arbitration clause, the view taken by the below court for referring the matter to arbitration was affirmed by the Supreme Court.