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An agreement is terminated by one party on account of the breach committed by the other (2017-04-10)

Arbitration And Conciliation Act, 1996; S. 8 ----- Whether termination of agreement by one party on account of breach committed by the other can make the arbitration clause inoperative ----- Held: where an agreement is terminated by one party on account of the breach committed by the other, particularly, in a case where the clause is framed in wide and general terms, merely because agreement has come to an end by its termination by mutual consent, the arbitration clause does not get perished nor is rendered inoperative.
Arbitration And Conciliation Act, 1996; S. 8 ----- Whether termination of agreement by one party on account of breach committed by the other can make the arbitration clause inoperative ----- Held: the prerequisites for an application under Section 8 are fulfilled, viz., there is an arbitration agreement; the party to the agreement brings an action in the court against the other party; the subject matter of the action is the same as the subject-matter of the arbitration agreement; and the other party moves the court for referring the parties to arbitration before it submits his first statement on the substance of the dispute ----- the civil court had no jurisdiction to entertain a suit afteran application under Section 8 of the Act is made for arbitration.

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