#fraud in contract

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.

Patna High Court holds that mere allegations of fraud or contract non-compliance do not invalidate an arbitration clause, empowering courts to appoint arbitrators under Section 11(6) if the designated authority fails to act. This ruling reinforces the primacy of arbitration agreements in commercial disputes, ensuring parties cannot evade arbitration through procedural objections.

Madras High Court rules that an unregistered sale agreement, though inadmissible for enforcement, can be admitted as evidence to defend against fraud or coercion claims in specific performance disputes. The ruling prioritizes substantive justice over procedural technicalities, impacting property litigants relying on unregistered documents to counter allegations.