17 December 2021, Friday

5 months ago

Writ dismissed against Section 8 order referring the case to arbitration: Delhi High Court

9 November 2021 | Arun Srivastava v. Larsen & Toubro Ltd. | CM(M) 1520 of 2018 | Amit Bansal J | Delhi High Court | 2021 SCC OnLine Del 4909

In a recovery suit, the defendant applied under Section 8 ACA to refer the matter to arbitration. The application was resisted on the ground that amount was admitted. The application was allowed saying that the existence of the arbitration agreement was not in doubt. The order was challenged in a petition under Article 227 of the Constitution.

The High Court noted that in light of the authorities, especially in Deep Industries (2020) 15 SCC 706, no interference was required.

Even otherwise Section 8 ACA was peremptory in nature and once there is an arbitration clause in the agreement, it is obligatory for the court to refer the parties.

Read the judgment here.

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