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Arbitrability Of Derivative Action Claims

Garima Bothra, GITAM School of Law, GITAM University


There is no provision under Indian law that covers derivative actions by shareholders in India. While courts have generally adopted a stance against the arbitrability of oppression and mismanagement matters, their stance on derivative action suits is unclear. In derivative actions, remedies are sought at the behest of the company. The justification to rationalize the non-arbitrability of oppression and mismanagement matters cannot always apply to derivative action suits. This article aims to analyse the reasons why derivate claims are required to be arbitrated. Along with giving an Indian perspective on the issue, the author will also discuss the stance in different countries across the globe.

Keywords: Companies Act, Shareholders, Arbitration Agreement, Rights


Indian Journal of Law and Legal Research

Abbreviation: IJLLR

ISSN: 2582-8878


Accessibility: Open Access

License: Creative Commons 4.0

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​All research articles published in The Indian Journal of Law and Legal Research are fully open access. i.e. immediately freely available to read, download and share. Articles are published under the terms of a Creative Commons license which permits use, distribution and reproduction in any medium, provided the original work is properly cited.


The opinions expressed in this publication are those of the authors. They do not purport to reflect the opinions or views of the IJLLR or its members. The designations employed in this publication and the presentation of material therein do not imply the expression of any opinion whatsoever on the part of the IJLLR.

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