Section 11(6A) Arbitration Act Does Not Prevent Courts From Considering Issue Of Arbitrability
Case: Indian Oil Corporation Limited vs NCC Limited
Coram: Justices MR Shah and BV Nagarathna
Case No.: CA 341 OF 2022
Court Observation: “…we do not agree with the conclusion arrived at by the High Court that after the insertion of SubSection (6A) in Section 11 of the Arbitration Act, scope of inquiry by the Court in Section 11 petition is confined only to ascertain as to whether or not a binding arbitration agreement exists qua the parties before it, which is relatable to the disputes at hand. We are of the opinion that though the Arbitral Tribunal may have jurisdiction and authority to decide the disputes including the question of jurisdiction and nonarbitrability, the same can also be considered by the Court at the stage of deciding Section 11 application if the facts are very clear and glaring and in view of the specific clauses in the agreement binding between the parties, whether the dispute is nonarbitrable and/or it falls within the excepted clause. Even at the stage of deciding Section 11 application, the Court may prima facie consider even the aspect with regard to ‘accord and satisfaction’ of the claims”.
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