parties to the
contract to their bargain. It is in that context
that Section 28 of the Indian Contract makes
contracts void, which restricts ... there was only one contract and that a
contract or agreement by way of gaming of wagering
contract which is void cannot be made
settlement on the
earlier contracts and secondly, whether the arbitration clause in the earlier
contracts survived after the settlement contract. The Supreme Court cited ... machinery of the Arbitration Acts". It is also theoretically
possible that the arbitration agreement may be void and yet the
contract may be valid
Contract, then they have no existence apart from the impugned Contract and that if the impugned Contract perishes the Arbitration clause must perish with ... footing that when the initial Contract, which contained the Arbitration clause, was an illegal Contract and void, the Arbitration clause being a part of this
provision of the Arbitration & Conciliation Act, 1996 , the concept
that the main contract and the arbitration agreement formed two
independent contracts. Commercial rights ... Arbitration
& Conciliation Act, the arbitration clause continues to be enforceable,
notwithstanding a declaration that the contract was null and void.
Courts have to adopt
their contention that there was no concluded contract or that the said contract was illegal and void, they should be granted leave to revoke ... void and without jurisdiction and therefore the contract and the arbitration agreement are also illegal and void as alleged in paragraph 10 of the petition
opinion such a contract would not be void considering the provisions of Section 28 of the Contract Act. The provisions for Arbitration ... learned Arbitrator. Even if it is contended that the contract is void, the arbitration agreement is severable from the contract and it is open
decline to make a reference to arbitration in
case it finds that the arbitration agreement is null and void, inoperative or
incapable of being performed ... underlying contract.
The Indian Arbitration Act, 1996 , as noticed above, under Section 16 accepts the
concept that the main contract and the arbitration agreement form
final settlement under the
contract, the rights and obligations under the contract do not
subsist and consequently the arbitration clause also perishes
along with ... plea is that the contract
is void, illegal or fraudulent etc., in which case, the entire
contract along with the arbitration clause
existent or
ineffective. Moreover, even where the matrix contract is held to be void, the
arbitration agreement may still be upheld as a valid ... void , the arbitration clause cannot operate, for along with the original
contract, the arbitration agreement is also void. Similarly, though the
contract was validly executed
That since the underlying contract has not come into existence, in
view thereof the arbitration clause in the contract is inoperative ... arbitration agreement if the contract is in writing
and the reference is such as to make that
arbitration clause part of the contract.
(44) Definition
