If Remedy For Cause Of Action Falls Within Scope Of Arbitration Agreement, Counter Party Cannot Be Compelled To Defend It In A Suit: Delhi HC
The Delhi High Court Bench of Acting Chief Justice Vibhu Bakhru and Justice Tushar Rao Gedela held that the scope of examination in an application under Section 8 of the Act is limited to prima facie examining the validity and existence of the arbitration agreement. Once it is accepted that a valid arbitration agreement exists between the parties, the court is necessarily required to allow the application under Section 8 of the Act and refer the parties to arbitration. Additionally, the court noted that if a remedy for a cause of action falls within the scope of an arbitration agreement, the counter party cannot be compelled to defend the same in a suit. Moreover, the court held that the scope of examination in an application under Section 8 of the Act is limited to prima facie examining the validity and existence of the arbitration agreement.
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