#Fraud and Arbitrability

The Bombay High Court has ruled that mere allegations of fraud in the making of a contract do not render an arbitration agreement unenforceable; Section 8 applications must be referred to arbitration unless the arbitration clause itself is proven void or non-existent. This clarifies that fraud challenges go to the merits of the dispute, not the validity of the arbitration mechanism, reinforcing pro-arbitration policy in commercial disputes.

Karnataka High Court rules that an arbitration agreement remains enforceable under Section 8 of the Arbitration and Conciliation Act even when signed post-investment, and mere fraud allegations between partners do not oust arbitration. The ruling clarifies that disputes involving unregistered firms are arbitrable unless fraud vitiates the agreement itself.

Supreme Court holds that disputes involving serious allegations of forgery regarding the arbitration agreement itself are non-arbitrable and require judicial determination.