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A civil court validly refers the entire subject matter of a suit to arbitration under section 8 of the…

A valid section 8 reference of the entire subject matter leaves the court action to be disposed of in terms of the reference. Referral does not decree or reject the…

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A civil court validly refers the entire subject matter of a suit to arbitration under section 8 of the Arbitration and Conciliation Act, 1996 after satisfying the statutory conditions. How should it deal with that suit?

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Answer and explanation

Correct answer A

A valid section 8 reference of the entire subject matter leaves the court action to be disposed of in terms of the reference. Referral does not decree or reject the substantive claim on its merits. The reference must satisfy the statutory conditions; an arbitration objection does not automatically succeed merely because it is asserted.

See P. Anand Gajapathi Raju v. P. V. G. Raju, (2000) 4 SCC 539.

Option feedback

Option A

Complete valid referral disposes of the suit in terms of the reference without a merits decision.

Option B

Referral is not a merits dismissal rejecting the underlying claim.

Option C

Referral does not decree the substantive claim.

Option D

The 1996 referral scheme does not require an indefinite adjournment of the suit.

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