A Deep Dive Into The Arbitration And Conciliation Act, 1996

MCQ SELF CHALLENGE #0096 ON THE ARBITRATION AND CONCILIATION ACT, 1996

The Arbitration and Conciliation Act, 1996

Dear Professional Seniors & Friends

Warm Greetings!

Here is the Next post of #MCQ on concept-based practical professional knowledge on the valuation of inventory-11 in a unique manner to be self-answered by participants. The detailed answers to these MCQs shall be posted the next day for the self-assessment of the participants. If you have further queries regarding tax compliance, feel free to contact our tax consultant in Gurgaon.

MCQ 96.1: Sanjay and Mobit partners in a partnership firm agree in writing to refer a dispute between them in business to an arbitrator, In spite of this agreement Sanjay files a suit against Mohit relating to the dispute in court. With regard to the above answer the following questions.

A. The jurisdiction of the count is ousted as a valid arbitration agreement exists

B. Court has jurisdiction over the matter and it overpowers the arbitration agreement and such dispute cannot be referred to the jurisdiction

C. Sanjay can file an appeal in Court only against an arbitral award

D. Both A and C

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

A. The jurisdiction of the court is ousted as a valid arbitration agreement exists

B. Such dispute cannot be referred to arbitration it, can only be referred in court.

C. Sanjay can file an appeal in Court only against an arbitral award

D. Both A and C

Answer MCQ Self Challenge #0096

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

Answer MCQ 96.1:

C. The jurisdiction of the court is dusted as a valid arbitration agreement exists

Practical Analysis for MCQ 96.1:

• As per Section a, 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 approaches the court, but the other party requests the court not to entertain me 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 the subject matter of arbitration agreement between them

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

Answer MCQ 96.2:

B. Such a dispute cannot be referred to arbitration it can only be referred to court.

Practical Analysis for MCQ 96,2

• Generally, any nights 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 the validity of the will of a deceased) etc.
• In the given case, the dispute is with regard to the genuineness of a will. This dispute falls under testamentary matters and so much depute cannot be referred to arbitration
• Accordingly, the commencement of legal proceedings in the court by Shyam is valid. Therefore Ram's application to the court for a stay of legal proceedings is not tenable.

Basis of above analysis Ansiver to MCQ 96,2 8. Such dispute cannot be referred to arbitration it can only be referred to court.

(Disclaimer: The objective of the MCO 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