No Provision Under Arbitration Act To Spilt Parties Or Refer Part Of Subject Matter To Arbitration, Delhi High Court Dismisses S. 8 Petition
Live LawThe Delhi High Court single bench of Justice Jasmeet Singh held that under the Arbitration and Conciliation Act, 1996 there is no provision for splitting of parties and referring part of the subject matter to arbitration. It held that where a suit encompasses matters outside the arbitration agreement and involves parties not party to the said agreement, Section 8 of the Arbitration and Conciliation Act, 1996 does not apply. In response, the Defendant filed an application under Section 8 of the Arbitration and Conciliation Act, 1996 in the court seeking the dismissal of the suit before the Delhi High Court and argued that there is an Arbitration Clause within the 'Agreement to Sell'. It held that where a suit encompasses matters outside the arbitration agreement and involves parties not party to the said agreement, Section 8 of the Arbitration Act does not apply.