In Brief
A family trust deed contained a clause providing for arbitration to resolve disputes between beneficiaries. When disputes arose, respondents filed an application under Section 11 of the Arbitration and Conciliation Act, 1996 to appoint an arbitrator. The High Court allowed the application, treating beneficiaries as parties to an arbitration agreement. The Supreme Court reversed this, holding that a trust deed does not constitute an arbitration agreement because beneficiaries neither signed it nor entered into a formal agreement to submit disputes to arbitration. The Court further held that disputes relating to trusts fall within the exclusive domain of the Indian Trust Act, 1882, not private arbitration.
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