#arbitrability

Bombay High Court holds that disputes relating to possession under licensor-licensee agreements fall exclusively under the Small Causes Court's jurisdiction, rendering arbitration clauses unenforceable. This ruling impacts commercial tenants and landlords seeking interim relief under the Arbitration Act, reinforcing the primacy of statutory jurisdiction over contractual arbitration.

Bombay HC holds that commercial disputes involving fraud remain arbitrable unless the fraud affects public interest or involves serious criminal offenses. The court set aside the arbitrator's jurisdictional objection, emphasizing that mere allegations of fraud or third-party involvement do not render a dispute non-arbitrable under the Vidya Drolia test.

The Bombay High Court clarifies that allegations of fraud in the making of a contract do not render an arbitration clause unenforceable unless the agreement itself is proven forged or non-existent. This reinforces the separability doctrine, ensuring parties cannot evade arbitration by merely pleading fraud - critical for commercial parties relying on arbitration agreements in high-stakes share transactions.

MP High Court rules that exclusion of contract termination disputes from arbitration does not extend to payment claims for work already performed. The court appointed an arbitrator under Section 11, reinforcing that arbitrability is determined by the nature of the dispute, not the contract clause.

The J&K High Court has ruled that courts must not refuse arbitration appointments merely because a claim appears time-barred - limitation issues are for the arbitrator to decide, and the period spent litigating in the wrong forum may be excluded under Section 14 of the Limitation Act. This empowers parties to bypass procedural delays and ensures arbitrability is preserved unless the limitation defense is unmistakably clear on the face of the pleadings.

The Bombay High Court has ruled that when an insurer pays part of an insurance claim, it constitutes an admission of liability for the entire claim, and any dispute over the unpaid balance relates only to quantum-not arbitrability. This clarifies that policyholders can compel arbitration for residual amounts even when insurers attempt to sever liability from payment, reinforcing the enforceability of arbitration clauses in commercial insurance disputes.

Madhya Pradesh High Court rules that an arbitration clause in a mere agreement to form a partnership is non-arbitrable under Section 11(6) of the Arbitration Act, as no enforceable partnership exists. The decision underscores that arbitrability hinges on the actual formation of a partnership, not just a preliminary agreement.

Andhra Pradesh High Court holds that filing a civil suit during pending arbitration violates Section 8 of the Arbitration and Conciliation Act, 1996, reinforcing exclusive jurisdiction of arbitral tribunals.