Reference under section 8 of the Act
1 A party to the Arbitration Agreement is entitled to invoke Arbitration notwithstanding that party participated in the Civil Suit between them.
2 In Cases where the liability is admitted, expressly or impliedly, yet the Court, u/s 8 of the Act, is bound to refer the matter for Arbitration.
3 Trial Court may refuse to refer the matter for Arbitration u/s 8 of the Act where the liability is admitted and essentially there is no “dispute” arising under the Contract.
4 Section 8 Application can be filed alongwith the Written Statement.
5 Having regard to nature of Reliefs claimed against all Defendants and in particularly where some of Defendants are not signatory to Arb. Ag.; and therefore matter cannot be referred to Arb. u/s 8.
6 A Case involving (i) various Contracts; (ii) except one Contract, none contained Arb. Cl; (iii) Substantive reliefs claimed in Suits falling outside Arb. Cl.; matter cannot be referred to Arbitration.
7 A borrower can file a Suit against Banks and Fin. Inst. and not vice versa; and therefore dispute being Arbitrable, the Suit so filed can be referred to Arb. u/s 8 of the Act.
8 If it is found that non-signatory parties to Suit cannot even be said to be claiming through and under signatories to arbitration agreement, Suit cannot be referred for Arbitration.
9 Non availability of original or certified copy of Arb. Ag., which is mandated u/s 8(2) of the Act, cannot be a ground to refuse reference u/s 8, when the existence of Arb. Ag. is not in dispute.
10 Application filed by Def. under O.7 R.11 or Replies filed to the Interim Application of Plaintiff are supplemental and incidental proceedings and not “first statement on the substance of the dispute”.
11 Where Arbitrator itself has ruled that it does not have the jurisdiction; and its said Order was not challenged by any of the parties; Section 8 Application not maintainable.
12 Section 8 Application has to be filed within the time period available for filing Written Statement.
13 An objection u/s 8 of the Act, taken in Application for Leave to Defend the Suit, is deemed to be objection taken within time frame.
14 A Party who has disputed the existence of Arbitration in response to Section 21 Notice, may still maintain Application u/s 8 of the Act.