Shri Ganpati Jurists – Legal Learning
Fraud Overrides Arbitration
Arbitration under the Arbitration and Conciliation Act, 1996 is based on consent.
When serious allegations of fraud go to the root of the arbitration agreement, the dispute becomes non-arbitrable.
If the existence or genuineness of the arbitration agreement is disputed, or the original/certified copy is not produced:
• Reference to arbitration can be refused
• Appointment of an arbitrator is impermissible
• Civil courts retain full jurisdiction
⚖️ Supreme Court Ruling:
Rajia Begum v. Barnali Mukherjee
📌 Key Principle:
Arbitration cannot be forced where consent itself is under suspicion.
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