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MCQ Self Challenge #0096 on the Arbitration and Conciliation Act, 1996

The Arbitration and Conciliation Act, 1996

 

Dear Professional Seniors & Friends,
Warm Greeting!

Here is the Next post of #MCQ on concept based practical professional knowledge on Valuation of Inventory -II in a unique manner to be self answered by participants. The detailed answer of these MCQs shall be posted next day for the self assessment of the participants.

MCQ 96.1: Sanjay and Mohit partners in a partnership firm make an agreement in writing to refer a dispute between them in business to an arbitrator. Inspite of this agreement Sanjay files a suit against Mohit relating to the dispute in a court. With regard to above answer the following questions.
A. The jurisdiction of court is ousted as a valid arbitration agreement exists
B. Court has jurisdiction over the matter and it overpowers arbitration agreement and such dispute cannot be referred to jurisdiction
C. Sanjay can file an appeal in Court only against arbitral award
D. Both A and C

MCQ 96.2: If in the above case the Sanjay and Mohit are brothers and they enter into agreement to refer genuineness of a will to arbitrator. Inspite of this agreement Sanjay files a suit against Mohit relating to the dispute in a court. With regard to above answer the following questions.

A. The jurisdiction of court is ousted as a valid arbitration agreement exists
B. Such dispute cannot be referred to arbitration it, can only be referred to court.
C. Sanjay can file an appeal in Court only against arbitral award
D. Both A and C

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CA Sanjay Kumar Agrawal
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Answer MCQ Self Challenge #0096

 

Dear Professional Seniors & Friends,

Warm Greetings!

 

This post of MCQ is on provisions relating to The Arbitration and Conciliation Act, 1996.

 

Answer MCQ 96.1: C. The jurisdiction of court is ousted as a valid arbitration agreement exists

 

Answer MCQ 96.2:  B.  Such dispute cannot be referred to arbitration it, can only be referred to court.

 

Practical Analysis for MCQ 96.1:

  • As per Section 8, if there is an arbitration agreement between the parties, the dispute shall not be submitted to the court, but instead shall be submitted to arbitration. Thus, no party can initiate the litigation through the court if there is an arbitration agreement between the parties
  • Section 8 further provides that if, despite an arbitration agreement, one of the parties approached the court, but the other party requests the court not to entertain the dispute, and instead refer it to arbitration, the court shall further refer the matter to arbitration.
  • In the above case, neither sanjay nor mohit is entitled to file a suit in court with respect to any dispute which is subject matter of arbitration agreement between them.

 

Based on the above analysis Answer to MCQ 96.1: C The jurisdiction of court is ousted as a valid arbitration agreement exists

 

Practical Analysis for MCQ 96.2:

  • Generally any rights involving private rights, which may be submitted to a court for resolution, can be submitted to arbitration. However, certain disputes cannot be referred to arbitration like matrimonial disputes, disputes with respect to testamentary matters (eg. A dispute with respect to validity of will of a deceased) etc.
  • In the given case, the dispute is with regard to genuineness of a will. This dispute falls under testamentary matters and so such dispute cannot be referred to arbitration.
  • Accordingly, commencement of legal proceedings in the court by shyam is valid. Therefore Ram’s application to the court for stay of legal proceedings is not tenable.

 

Basis of above analysis Answer to MCQ 96.2 B. Such dispute cannot be referred to arbitration it, can only be referred to court.

 

(Disclaimer: The objective of the MCQ post is just to discuss the concept, it may happen, by change of facts, the answer may be different. Please do not treat this as professional opinion; you can definitely have your own opinion.)

 

Sincere Regards!

 

CA Sanjay Kumar Agrawal

Mobile: 9810116321

 

To access MCQ posts regularly, please Join Telegram Channel:
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