Amendments Suggested By Supreme Court in Sections 11(7), 37 Of Arbitration Act, To Bring Section 8 & 11 At Par On Appealability

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Case Details: Pravin Electricals Pvt Ltd v Galaxy Infra and Engineering Pvt Ltd.

Bench: Justice RF Nariman, BR Gavai and Hrishikesh Roy

Case No: Civil Appeal no. 825 of 2021

Court observation: By a process of judicial interpretation, Vidya Drolia(supra) has now read the “prima facie test” into Section 11(6A) so as to bring the provisions of Sections 8(1) and 11(6) r/w11(6A) on par.

Considering that Section 11(7) and Section 37have not been amended, an anomaly thus arises. Whereas in cases decided under Section 8, a refusal to refer parties to arbitration is appealable under Section 37(1)(a), a similar refusal to refer parties to arbitration under Section 11(6) read with Sections 6(A) and 7 is not appealable.

In the light of what has been decided in Vidya Drolia (supra), Parliament may need to have a re-look at Section 11(7) and Section 37 so that orders made under Sections 8 and 11 are brought on par qua appealability as well”.

“…we set aside the impugned judgment of the Delhi High Court in so far as it conclusively finds that there is an Arbitration Agreement between the parties”, the bench observed.


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