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The parties to an arbitration agreement may refer to arbitration, a dispute which has arisen or which may arise between them, in respect of a defined legal relationship, whether contracted or not.
Thus, all matters of civil nature whether they relate to present or future disputes may form the subject matter of reference. The dispute, however, must be the consequence of legal relationship arising out of an obligation, the performance of which is a duty under the law and for its breach a remedy is provided.
BAR TO SUIT
When the parties have entered into an arbitration agreement, they cannot file a suit in a court of law in respect of any matter covered by the agreement; otherwise the very purpose of arbitration will be frustrated. The court will normally not intervene except where so provided by the Act.
WHAT DISPUTES CANNOT BE REFERRED FOR ARBITRATION
The following disputes cannot be referred to arbitration:
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Insolvency proceedings
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Lunacy proceedings.
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Proceedings for appointment of a guardian to a minor.
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Question of genuineness or otherwise of a will or matter relating to issue of a probate.
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Matters of criminal nature.
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Matters concerning Public Charitable Trusts.
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Disputes arising from and founded on an illegal contract |
