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A. AYYASAMY vs. A. PARAMASIVAM & ORS.

SCR Citation: [2016] 11 S.C.R. 521
Year/Volume: 2016/ Volume 11
Date of Judgment: 04 October 2016
Petitioner: A. AYYASAMY
Disposal Nature: Appeals Allowed
Neutral Citation: 2016 INSC 948
Judgment Delivered by: Hon'ble Mr. Justice Arjan Kumar Sikri
Respondent: A. PARAMASIVAM & ORS.
Case Type: CIVIL APPEAL /8245-8246/2016
Order/Judgment: Judgment
1. Headnote

Arbitration and Conciliation Act, 1996: s. 8 - Application under - Qziestioning the maintainability of the suit on the ground that the parties had agreed to settle the dispute through arbitration - Application dismissed holding that suit was maintainable as the case involved serious allegations as to fraud and malpractices - The order affirmed by High Court - On appeal, held: The cases where there are serious allegations of fraud that in normal course constitute criminal offence, and are complex in nature demanding extensive evidence, are to be treated as non-arbitrable and civil court should decide the matter - However, mere allegation of fraud simplicitor may not nullify the effect of arbitration agreement - Jn the present case, the allegations of fraud were not so serious which could not be decided by the arbitrator - Application u/s. 8 was wrongly rejected.

2. Case referred
3. Act
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4. Keyword
  • Arbitration and Conciliation Act
  • 1996: s. 8 - Application under - Qziestioning the maintainability of the suit on the ground that the parties had agreed to settle the dispute through arbitration - Application dismissed holding that suit was maintainable as the case involved serious allegations as to fraud and malpractices