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

Orbit Infra Ltd's suit is pending before a civil court. Its opponent's Section 8 application seeking reference to arbitration is still undecided. Meanwhile, the opponent has started arbitral proceedings under the agreement. What is the legal position under the Act?

Arbitration may be commenced or continued and an arbitral award made even though the Section 8 application is pending before the judicial authority. Section 8(3) expressly provides this, so neither the commencement nor the making of the award has to wait for the court's decision.

  1. AArbitration cannot be commenced until the judicial authority decides the application
  2. BArbitration may be commenced or continued and an arbitral award made, despite the pending applicationCorrect
  3. CArbitration may commence, but no award may be made until the court decides
  4. DThe arbitral proceedings are void because the court is already seized of the matter

Explanation

Section 8(3) states that even though an application under sub-section (1) has been made and the issue is pending before the judicial authority, arbitration may be commenced or continued and an award made. Hence a bar on commencement or on making the award is wrong.

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