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'A' files a suit against 'B' for recovery of money due under the agreement term whereof has since…

The separable arbitration agreement survives expiry of the underlying contract for disputes about accrued contractual liabilities. A money claim under the expired agreement…

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'A' files a suit against 'B' for recovery of money due under the agreement term whereof has since expired by efflux of time. 'B' files an application under Section 8 of the Arbitration and Conciliation Act, 1996 contending that the agreement contains an arbitration clause. The court would then

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Correct answer B

The separable arbitration agreement survives expiry of the underlying contract for disputes about accrued contractual liabilities. A money claim under the expired agreement therefore remains referable under its arbitration clause through a proper section 8 application. Expiry alone does not extinguish the clause; a new consent or referral to the High Court merely to decide appointment is unnecessary.

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