Arbitration and Conciliation Act Section 54 — Power of judicial authority to refer parties to arbitration

CHAPTER II

Civil

Summary

A judicial authority that is dealing with a dispute about a contract made between persons covered by section 53, where that contract includes an arbitration agreement (covering either present or future differences) that is valid under section 53 and capable of being carried out, must refer the parties to the decision of the arbitrators. This referral happens when either party, or any person claiming through or under that party, applies for it.

This duty applies despite anything in Part I of the Act or in the Code of Civil Procedure, 1908. However, making this referral does not stop the judicial authority from acting later if the arbitration agreement cannot proceed or becomes inoperative.

Official Text

Notwithstanding anything contained in Part I or in the Code of Civil Procedure, 1908 (5 of 1908), a judicial authority, on being seized of a dispute regarding a contract made between persons to whom section 53 applies and including an arbitration agreement, whether referring to present or future differences, which is valid under that section and capable of being carried into effect, shall refer the parties on the application of either of them or any person claiming through or under him to the decision of the arbitrators and such reference shall not prejudice the competence of the judicial authority in case the agreement or the arbitration cannot proceed or becomes inoperative.