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 ... earlier
contract, falls with it. But where the dispute is whether such
contract is void ab intio, the arbitration clause cannot
operate on those disputes
arbitration clause “in a contract”.
28
18. Sections 2(a) , 2(b) , 2(g) and 2(h) of the Indian Contract Act, 1872
[“ Contract ... 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
contract by taking recourse to arbitration. The
arbitration agreement is required to be considered as a stand-alone
agreement independent from its underlying contract ... main contract and the arbitration agreement form
two independent contracts. Commercial rights and obligations are
contained in the underlying, substantive, or the main contract
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 ... existence or validity of
the arbitration agreement, the arbitration clause, which formed part of
the contract, had to be treated as an agreement independent
maintainability of the arbitration proceeding on the ground that the contract
agreement, which contained the arbitration agreement, was void and hence, the claims raised ... arbitral proceeding
whereby it was held that the contract dated 17.08.1996 was a void contract. However, having held as
above, the learned arbitrator had gone
validity of the arbitration
agreement, and for that purpose,—
(a) an arbitration clause which forms part of a
contract shall be treated as an agreement ... arbitral tribunal that the
contract is null and void shall not entail ipso
jure the invalidity of the arbitration clause.”
7
7. It will
dispute is such that it cannot
be referred to arbitration, even if there is an
arbitration agreement between the parties. When the
case of fraud ... does this plea permeate the
entire contract and above all, the agreement of arbitration,
rendering it void, or (2) whether the allegations of fraud
touch
arbitral tribunal that the contract is null and
void shall not entail ipso jure the invalidity of the arbitration clause.
(2) A plea that ... existence or validity of the arbitration agreement.
For that purpose, an arbitration clause which forms part of a
contract shall be treated as an agreement
where arbitration
agreement is a part of a contract or an agreement which also
contains other terms and conditions. It is undisputed that
arbitration agreement ... contract itself and an arbitration agreement is independent of
other terms of the contract. Even if the main contract
contained in instrument (which requires stamping
party from enforcing this rights, is void to
that extent.
Exception 1 - Saving of contract to refer to arbitration
dispute that may arise-- This section ... Section
28(b) of the Contract Act and the clause will have to be declared as void.
12. After hearing the learned Senior Advocates
