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CS Professional · Arbitration, Mediation and Conciliation · Challenge to Award and Appeals

Zenith Infra Pvt Ltd and Kaveri Steels Ltd have an arbitration clause. Kaveri files a suit, and Zenith applies under section 8 for reference of the parties to arbitration. The court rejects the application and refuses to refer the parties. Zenith wants to challenge this order. Which statement is correct under section 37?

An appeal lies. Section 37(1)(a) allows an appeal from an order refusing to refer the parties to arbitration under section 8, to the court that hears appeals from original decrees of the court passing the order. Zenith need not wait for the suit to end.

  1. ANo appeal lies, because only orders under section 34 are appealable
  2. BAn appeal lies from the order refusing to refer the parties to arbitration under section 8Correct
  3. CZenith can only wait until the final decree in the suit and then appeal
  4. DAn appeal lies only to the arbitral tribunal

Explanation

Section 37(1)(a) provides an appeal from an order refusing to refer the parties to arbitration under section 8. The appeal goes to the court authorised to hear appeals from original decrees of the court that passed the order. The option limiting appeals to section 34 orders ignores clause (a).

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