Wednesday, July 28, 2010

Arbitration Act Extends to Civil Disputes: H Srinivas Pai

In H Srinivas Pai v. H.V.Pai, (dated 9.07.2010) the Supreme Court has observed that the Arbitration and Conciliation Act, 1996 extends to "civil disputes" and is not limited merely to "commercial disputes". Here is the relevant extract from the order:

"There is absolutely no basis for the observation of the High Court that Arbitration and Conciliation Act, 1996 will not apply to 'civil disputes', but will apply only to 'commercial disputes' or international commercial disputes. The Act applies to domestic arbitration's, international commercial arbitration's and conciliation's. The applicability of the Act does not depend upon the dispute being a commercial dispute. Reference to arbitration and arbitability depends upon the existence of an arbitration agreement, and not upon the question whether it is a civil dispute or commercial dispute. There can be arbitration agreements in non-commercial civil disputes also."- para. 5

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