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In a suit for specific performance of an agreement to sell immovable property, the defendant files a section 8 application together with the first written statement within the applicable time. The…

Question and options

In a suit for specific performance of an agreement to sell immovable property, the defendant files a section 8 application together with the first written statement within the applicable time. The parties admit a valid arbitration clause covering the entire dispute, and no other bar to reference exists. Under the Arbitration and Conciliation Act, 1996, the court shall:

  1. Dismiss the application on the ground of having not been filed before filing the written statement or taking any other steps in the proceedings.

  2. Allow the application and refer the parties to arbitration.

  3. Allow the application and stay further proceedings in the suit with right to the plaintiff to revive the suit if the defendant does not proceed with the arbitration with due diligence.

  4. Dismiss the application on the ground that claims for specific performance of Agreement to Sell are not arbitrable.

Answer and explanation

Correct answer: B - Allow the application and refer the parties to arbitration.

Section 8(1) permits the application not later than the date of the first statement on the substance of the dispute. A contemporaneous application is therefore timely on the stated facts. Specific performance of an agreement to sell immovable property is arbitrable; it differs from proceedings to enforce a mortgage in rem.

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