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As per case facts, a partnership dispute arose over an 'Admission Deed' relied upon by Rajia Begum for induction and arbitration. Barnali Mukherjee denied its execution, alleging forgery. The High
...Court, in a Section 9 Order, doubted the deed's existence, a finding upheld by the Supreme Court. While lower courts dismissed Rajia Begum's Section 8 application to refer the fraud-alleged dispute to arbitration, the High Court, under Article 227, allowed it. Concurrently, the High Court dismissed Rajia Begum's Section 11 application for arbitrator appointment, questioning the arbitration agreement's existence. The question arose whether disputes involving serious fraud allegations challenging the arbitration agreement's very existence are arbitrable. Finally, the Supreme Court held that serious fraud allegations going to the root of the arbitration agreement render the dispute non-arbitrable, quashing the High Court's order allowing arbitration and affirming the dismissal of the Section 11 application.
Bench
Applied Acts & Sections
Section 8
–The Arbitration And Conciliation Act, 1996
Section 9
–The Arbitration And Conciliation Act, 1996
Section 11
–The Arbitration And Conciliation Act, 1996
Legal Notes
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