Arbitration clause vs summary suit
Aditya Dev
(Querist) 13 October 2017
This query is : Resolved
We are the defendant in a suit under Order 37 filed by the plaintiff for the recovery of Rs. 30,00,000/-. The contract between us also has an arbitration clause. We have still not filed our WS in order 37 case as we want to take the matter into arbitration.There is a liability statement made by the plaintiff which is signed by us. Now the court feels that the sign means that we have accepted the contents of the statement whereas we have only accepted the letter and not the contents. Meanwhile, we have replied to summon of motion wherein we say that the court does not have the power to hear the matter because there is an arbitration clause. The court passes an order against us saying that since we have not disputed the amount so claimed, therefore there is no dispute and since there is no dispute the court is the correct forum before which the suit shall be heard.
What we are trying to say is that since there is an arbitration clause, even the question whether we have accepted the liability or not shall be decided by an arbitrator and not the judge. And as we have not accepted the amount, it makes the amount as disputed and hence arbitration is the proper forum.
My question is whether in this case, Arbitration will prevail over Or. 37 as I feel that even the question of amount being in dispute shall only be addressed by the arbitrator and once there is an arbitration clause, no court has has jurisdiction on the same matter???
P. Venu
(Expert) 14 October 2017
The matter requires professional consultation.
Rajendra K Goyal
(Expert) 14 October 2017
Arbitration clause if not revoked, does not bar other legal avenues to claim relief.
Advocate Bhartesh goyal
(Expert) 15 October 2017
If there exist arbitration clause in agreement then jurisdiction of civil court is barred it is hardly matters that suit is under order 37 of civil procedure code. challenge the order of civil court before High Court..
