SC: No declaration & injunction suit w.r.t validity of arbitration agreement

The Hon’ble Supreme Court, on 23rd August 2019, in the matter of National Aluminium Company Limited v. Subhash Infra Engineers Pvt. Ltd. & Anr.observed that if a party to arbitration wants to raise an objection with regard to existence or validity of the arbitration agreement, it is open for such party to move an application before the arbitrator, but with such plea, no declaration and injunction suit can be maintained. 

The Hon’ble Supreme Court observed that:

[Kvaerner Cementation India Limited V. Bajranglal Agarwal and Another  2012(5) SCC, 214] Any objection with respect to existence or validity of the arbitration agreement, can be raised only by way of an application under Section 16 of the Act and Civil Court cannot have jurisdiction to go into such question. (Para 13)

If a party to arbitration wants to raise an objection with regard to existence or validity of the arbitration agreement, it is open for such party to move an application before the arbitrator, but with such plea, he cannot maintain a suit for declaration and injunction. (This inference has been drawn on the basis of Para 14)

Copy of judgement: Judgement_23-Aug-2019

-Adv. Tushar Kaushik

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