Question
Which of the following is NOT a procedural requirement
for successfully invoking Section 8 for court referral to arbitration?ÂSolution
Section 8 does not require exhaustion of alternative dispute resolution mechanisms before invoking arbitration. Once a valid arbitration agreement exists covering the dispute, Section 8 becomes operative automatically. However, Section 8(5) does provide essential procedural conditions: (i) application must be timely; (ii) a copy of the original or certified arbitration agreement must be produced; and (iii) the court must prima facie find that a valid agreement exists. The Supreme Court in Agri Gold Exims emphasized that when an arbitration agreement of wide amplitude exists covering any disputes, Section 8 is peremptory in nature.
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