Arbitration and Conciliation Act Section 8 — Power to refer parties to arbitration where there is an arbitration agreement
CHAPTER II — Arbitration agreement
Civil
Summary
Sub-section (1) states that when a lawsuit is filed in court on a matter that is covered by an arbitration agreement, the court must send the parties to arbitration instead of deciding the case itself. This happens if a party to the arbitration agreement, or someone claiming through that party, asks the court to do so. The request must be made no later than the date the party submits their first statement on the actual dispute. The court must refer the parties to arbitration even if there is a judgment, decree, or order from the Supreme Court or any other court saying otherwise, unless the court finds that there is clearly no valid arbitration agreement.
Sub-section (2) says that the request to refer the parties to arbitration will not be accepted unless it comes with the original arbitration agreement or a properly certified copy of it. However, if the party making the request does not have the original or a certified copy because the other party to the agreement is holding it, then the requesting party can file the application with just a copy of the agreement and a separate petition asking the court to order the other party to produce the original or certified copy in court.
Sub-section (3) clarifies that even if a request to refer the parties to arbitration has been made and is still pending before the court, the arbitration process can still begin or continue, and an arbitral award can still be made. The court's pending decision on the request does not stop the arbitration from moving forward.
Official Text
1[(1)A judicial authority, before which an action is brought in a matter which is the subject of an arbitration agreement shall, if a party to the arbitration agreement or any person claiming through or under him, so applies not later than the date of submitting his first statement on the substance of the dispute, then, notwithstanding any judgment, decree or order of the Supreme Court or any Court, refer the parties to arbitration unless it finds that prima facie no valid arbitration agreement exists.]
(2) The application referred to in sub-section (1) shall not be entertained unless it is accompanied by the original arbitration agreement or a duly certified copy thereof: 2[Provided that where the original arbitration agreement or a certified copy thereof is not available with the party applying for reference to arbitration under sub-section (1), and the said agreement or certified copy is retained by the other party to that agreement, then, the party so applying shall file such application along with a copy of the arbitration agreement and a petition praying the Court to call upon the other party to produce the original arbitration agreement or its duly certified copy before that Court.]
(3) Notwithstanding that an application has been made under sub-section (1) and that the issue is pending before the judicial authority, an arbitration may be commenced or continued and an arbitral award made.