"I realise that some of my criticisms may be mistaken; but to refuse to criticize judgements for fear of being mistaken is to abandon criticism altogether... If any of my criticisms are found to be correct, the cause is served; and if any are found to be incorrect the very process of finding out my mistakes must lead to the discovery of the right reasons, or better reasons than I have been able to give, and the cause is served just as well." -Mr. HM Seervai, Preface to the 1st ed., Constitutional Law of India.

Monday, July 5, 2010

Handicrafts & Handloom Exports Corporation of India v. Ashok Metal Corporation

Today's Business Standard has reported a judgement of the Delhi High Court wherein the court is said to have held in Handicrafts & Handloom Exports Corporation of India v. Ashok Metal Corporation that:
  • S 5 is a provision which bars a civil court from entertaining a suit which is the subject matter of arbitration, unless authorised by the Arbitration and Conciliation Act, 1996.
  • A civil court cannot go into the question of non-existence of arbitration agreement in a suit for declaration, in view of S 5 as well as the competence of the arbitrators to rule on their own jurisdiction.
We had analysed a case which discussed the same issue in a previous post, wherein we had noted a few judgements which went against the above view.

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