Indian Contract Act,1872
Act No : 9
Section : Agreements in restraint of legal proceedings void
28.Agreements in restraint of legal proceedings void.- Everyagreement,-(a) by which any party thereto is restricted absolutely from enforcinghis rights under or in respect of any contract, by the usual legalproceedings in the ordinary tribunals, or which limits the time withinwhich he may thus enforce his rights; or(b) which extinguishes the rights of any party thereto, or dischargesany party thereto from aby liability, under or in respect of anycontract on the expiry of a specified period so as to restrict anyparty from enforcing his rights,is void to that extent. Saving of contract of refer to arbitration dispute that mayarise.-Exception 1.-This section shall not render illegal a contract,by which two or more persons agree that any dispute which may arisebetween them in respect of any subject or class of subjects shall be--------------------------------------------------------------------- 1 Exceptions 2 and 3 relating to agreements between partnersupon, or in anticipation of, dissolution of partnership and duringcontinuance of partnership, respectively were rep. by Act 9 of 1932,s. 73 and Sch. II. See now ss. 11 and 36 (2) of that Act. 2* Ins. by Act, 1 of 1997, s.2. w.e.f. (8-1-1997).---------------------------------------------------------------------31referred to arbitration, and that only the amount awarded in sucharbitration ?hall be recoverable in respect of the dispute soreferred.Suits barred by such contracts.-1* When such a contract has been made,a suit may be brought for its specific performance) and if a suit,other than for such specific performance, or for the recovery of theamount so awarded, is brought by one party to such contract againstany other such party, in respect of any subject which they have soagreed to refer, the existence of such contract shall be a bar to thesuit.Saving of contract to refer questions that have already arisen. Saving of contract to refer questions that have already arisen.-Exception 2.-Nor shall this section render, illegal any contract inwriting, by which two or more persons agree to refer to arbitrationany question between them which has already arisen, or affect anyprovision of any law in force for the time being as to references toarbitration.2*
Read All Comments
