Arbitration Clause In Sevens Football Association Bylaws Does Not Bar Suit For Members Disputes: Kerala HC

The Kerala High Court has held that the arbitration clause in the bylaws of the Sevens Football Association does not bar a civil suit in disputes among its members or office bearers, as the clause is limited to disputes between the association's units.

A coram of Justice S. Manu made the observation while dismissing an appeal challenging an interim injunction granted by the Additional District Court, Thrissur in a dispute over the use of the name “Sevens Football Association”, its abbreviation “SFA” and logo.

The association contended that some of its former members had formed a parallel body using a deceptively similar name, abbreviation “SFA”, and logo and were proposing to conduct events such as “SFA Convention”. It was further alleged that the rival group was attempting to project themselves as the office bearers and had unlawfully used the association's name and logo.

The rival group opposed the suit, raising a preliminary objection that the suit was not maintainable in view of an arbitration clause in the association's bylaws. They also disputed the authority of the office bearers who instituted the suit.

The trial court granted a temporary injunction restraining the rival group from using the name “Sevens Football Association”, its abbreviation “SFA”, and logo, pending disposal of the suit, which was challenged before the High Court.

Before the High Court, the rival group contended that the arbitration clause barred the suit and that this aspect was not properly considered by the trial court.

Rejecting these contentions, the Bench held:

“The arbitration clause in the bylaw speaks about resolution of disputes between various units of the Association by resorting to the procedure under the Arbitration and Conciliation Act. The arbitration clause is therefore intended only for resolution of disputes between various units and hence in the case of disputes between members of the Association or among its office bearers, arbitration cannot be invoked.”

The Court noted that the registration of the association stood renewed in favour of the office bearers who had instituted the suit, whereas the rival group's application for renewal had been rejected.

Finding that the trial court had not committed any illegality in exercising its discretion, the Court held that the order was not arbitrary or illegal.

Upholding the impugned order, the bench rejected the appeal. However, it clarified that the rival group would be free to organise football tournaments, provided they do not use the name “Sevens Football Association”, its abbreviation “SFA”, or the logo of the respondent association.

For Appellants: Advocates G Krishnakumar, Nina P Augustine, Athuliya P and Sooraj Sunil P

For Respondent: Advocates Ajaiy Baskar and Rajit