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

Harbour Freight Pvt Ltd applied under Section 8 to refer a dispute to arbitration, and the application is pending before the civil court. Meanwhile Harbour Freight's counterparty, Deccan Shipping Ltd, wants to proceed with the arbitration. Which statement is correct?

Arbitration may be commenced or continued and an award may be made even while the Section 8 application is pending. Section 8(3) expressly provides this, so the pendency of the issue before the judicial authority does not stop the arbitral proceedings.

  1. AArbitration cannot commence until the court disposes of the Section 8 application
  2. BArbitration may be commenced or continued and an award made even though the application is pendingCorrect
  3. CArbitration may commence but no award can be made until the court decides
  4. DArbitration may commence only with the court's written leave

Explanation

Section 8(3) states that notwithstanding that an application has been made under sub-section (1) and the issue is pending before the judicial authority, an arbitration may be commenced or continued and an arbitral award made. The options requiring waiting, leave, or restricting the award contradict this.

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