examining the plea that the
main contract is void or voidable. The Court
ought to decline reference to arbitration only
where ... Court can reach the conclusion that
the contract is void on a meaningful reading of
the contract document itself without the
requirement of any further
contract; and a decision that the contract is null and void shall
not entail ipso jure the invalidity of the arbitration clause. The
first contention ... contract.
ii. A decision by the arbitral tribunal declaring the
contract as null and void does not, ipso facto, make the
arbitration Clause invalid.”
(emphasis
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.
ii. A decision by the arbitral tribunal declaring the contract as null
and void does not, ipso facto, make the arbitration clause invalid
including the
arbitration agreement, void, then the very existence of the
arbitration agreement is called into question. In such cases, where
the arbitration agreement ... underlying contract, and
impeaches the arbitration clause itself. Another
category of cases is where the substantive contract
is "expressly declared to be void
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.
(2) A plea that
barred from re-agitating
the same claims before any forum, including private arbitration. The conduct of
15
the appellant, therefore, amounts to an impermissible attempt ... extent that it provides for private arbitration, is
void ab initio in the context of a works contract governed by the 1983 Act. In
support
undue influence
( section 16 of Contract Act), fraud ( section 17 of Contract
Act), misrepresentation ( section 18 of Contract Act) for
example, and such disputes ... claiming that the underlying
contract is void or voidable, it would have the wholly
undesirable result of delaying the arbitration [...].”
V. For an important policy
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.
(2) A plea that
first is that the plea perneats the entire
contract option of the arbitration agreement rendering it
void or secondly whether the allegation of fraud touches ... discharge of the contract by virtue of issuance of such a
discharge voucher or no dues certificate is rendered void
and cannot be acted upon
arbitration clause which forms part of a contract
shall be treated as an agreement independent of the
other terms of the contract ... arbitral tribunal that the contract
is null and void shall not entail ipso jure the invalidity
of the arbitration clause.
(2) A plea that