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CS Professional · Arbitration, Mediation and Conciliation · Arbitration: Introduction, Agreements and its Institutions

A suit is filed in an Indian court on a matter covered by an agreement of the kind referred to in section 44 of the Act (foreign award agreements). The defendant applies for reference to arbitration. When may the judicial authority decline to refer the parties under section 45?

The authority may decline only if it prima facie finds the agreement null and void, inoperative or incapable of being performed. Otherwise section 45 requires it to refer the parties to arbitration at a party's request, despite the Code of Civil Procedure.

  1. AIf the plaintiff objects to arbitration
  2. BIf it prima facie finds the agreement null and void, inoperative or incapable of being performedCorrect
  3. CIf the Code of Civil Procedure, 1908 provides for the suit
  4. DIf the claim amount is large

Explanation

Section 45 operates notwithstanding Part I or the Code of Civil Procedure and directs reference at a party's request, unless the authority prima facie finds the agreement null and void, inoperative or incapable of being performed. Objection by the other party is not a ground.

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