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Question

Sanjay and Mohit partners in a partnership firm make an agreement in writing to refer a dispute between them in business to an arbitrator. Inspite of this agreement Sanjay files a suit against Mohit relating to the dispute in a court. With regard to above answer the following questions

A The jurisdiction of court is completely ousted as a valid arbitration agreement exists Correct Answer Incorrect Answer
B Court has jurisdiction over the matter and it overpowers arbitration agreement and such dispute cannot be referred to jurisdiction Correct Answer Incorrect Answer
C Sanjay can file an appeal in Court only against arbitral award Correct Answer Incorrect Answer
D Both A and C Correct Answer Incorrect Answer

Solution

As per Section 8, if there is an arbitration agreement between the parties, the dispute shall not be submitted to the court, but instead shall be submitted to arbitration. Thus, no party can initiate the litigation through the court if there is an arbitration agreement between the parties Section 8 further provides that if, despite an arbitration agreement, one of the parties approached the court, but the other party requests the court not to entertain the dispute, and instead refer it to arbitration, the court shall further refer the matter to arbitration. In the above case, neither sanjay nor mohit is entitled to file a suit in court with respect to any dispute which is subject matter of arbitration agreement between them.

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