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.