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    Question

    Under the proviso to Section 8(1) (clarified through

    jurisprudence), what happens if a dispute partially falls within an arbitration agreement's scope? 
    A The entire dispute must go to arbitration if any part falls within the scope Correct Answer Incorrect Answer
    B The entire dispute remains in court as arbitration cannot be partially applied Correct Answer Incorrect Answer
    C The dispute is severed—parts covered by the arbitration agreement go to arbitration, while other parts remain with the court Correct Answer Incorrect Answer
    D The parties can choose which parts to arbitrate and which to litigate Correct Answer Incorrect Answer
    E The court always retains jurisdiction regardless of the arbitration clause Correct Answer Incorrect Answer

    Solution

    While not explicitly stated in Section 8, the principle of "severability" is well-established in arbitration jurisprudence and reflected in Section 34(2)(a)(iv), which allows setting aside only the part of an award dealing with matters beyond the arbitration agreement's scope. When disputes have both arbitrable and non-arbitrable components, or where some issues fall within the agreement and others do not, courts refer only the covered portions to arbitration. This prevents artificial barriers to enforcing valid arbitration agreements while respecting the boundaries parties have set.

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