Incorrect Reference Regarding Applicability Of Indian Arbitration Act, 1940 Wouldn’t Render Entire Arbitration Agreement Invalid: SC [Read Judgment]

Any reference to 1940 Act in the arbitration agreement would be of no consequence and the matter would be referred to arbitration only in terms of 1996 Act consistent with the basic intent of the parties as discernible from the arbitration agreement to refer the disputes to arbitrationSetting aside, what it termed as a ‘completely erroneous’ order, the Supreme Court observed that even if. Any reference to 1940 Act in the arbitration agreement would be of no consequence and the matter would be referred to arbitration only in terms of 1996 Act consistent with the basic intent of the parties as discernible from the arbitration agreement to refer the disputes to arbitration Setting aside, what it termed as a ‘completely erroneous’ order, the Supreme Court observed that even if an arbitration agreement entered into after Arbitration and Conciliation Act, 1996 had come into force makes a reference to the applicable provisions of those under Indian Arbitration Act or 1940 Act, such stipulation would be of no consequence and the matter must be governed under provisions of 1996 Act. The court said any reference to 1940 Act in the arbitration agreement would be of no consequence and the matter would be referred to arbitration only in terms of 1996 Act consistent with the basic intent of the parties as discernible from the arbitration agreement to refer the disputes to arbitration. Would it then make any difference if in an agreement entered into after 1996 Act, the reference made by the parties in the agreement was to arbitration in terms of 1940 Act.” Summary dismissal of SLP doesn’ mean affirmation of view vis-à-vis declaration of law With regard to observation of the high court that Patna High Court view in a similar matter is upheld by the apex court by dismissing SLP against it, the bench said Summary dismissal of SLP against a high court order would not mean affirmation of the view taken by the high court insofar as declaration of law is concerned.