Question

Reference to the Arbitration is provided in which section of the Arbitration and Conciliation Act, 1996

• A. Section 7
• B. Section 8
• C. Section 9
• D. Section 10

Hint:

When a lawsuit is filed despite an existing arbitration clause, Section 8 is the tool used to ask the court to stop the lawsuit and 'refer' the parties to arbitration as they originally agreed.

Answer 1

The Correct Option is B

Section 8 of the Arbitration and Conciliation Act, 1996, deals with the power of a judicial authority to refer parties to arbitration. It mandates that if an action is brought before a judicial authority in a matter which is the subject of an arbitration agreement, the authority shall, if a party so applies, refer the parties to arbitration unless it finds that no valid arbitration agreement exists. This section upholds the sanctity of the arbitration agreement by directing parties away from court litigation and towards their chosen dispute resolution mechanism. Section 7 defines an arbitration agreement, and Section 9 deals with interim measures by the court.