Pending suit referred to arbitration

 

Introduction

A pending suit can be sent for arbitration under Section 8 of the Arbitration and Conciliation Act, 1996. This section states that a party to a case may, at any time after the commencement of the suit, apply to the court for an order referring the dispute to arbitration.

Section 8 of the Arbitration and Conciliation Act, 1996 states that:

Section 8: A party to an arbitration agreement may, at any time after the commencement of the arbitral proceedings, apply to the Court to stay the proceedings.

The Court shall stay the arbitral proceedings if it is satisfied that—

(a) The arbitration agreement is valid, in force, and capable of being performed; and

(b) Prima facie there is a dispute between the parties with regard to which the arbitration agreement applies.

(c) Where the Court stays the arbitral proceedings, it may make an order that the parties to the arbitration agreement shall not commence or continue any legal proceedings in respect of the matters referred to in the arbitration agreement until the arbitral award is made and the time for making an application to set aside the award has expired or if an application to set aside the award has been made until the application is disposed of.

Arbitration

Arbitration is a process by which parties to a dispute agree to have their dispute resolved by an impartial third party, known as an arbitrator. Arbitration is a confidential and efficient way to resolve disputes, and it is often seen as an alternative to litigation.

To send a pending suit to arbitration, the party that wants to refer the dispute to arbitration must file an application with the court where the case is pending. The application must be made under Section 8 of the Act.

The application must be accompanied by the following documents:

  • A copy of the arbitration agreement between the parties.
  • A statement of the dispute that the parties want to refer to arbitration.
  • A request that the court refer the dispute to arbitration.

The court will then consider the application and decide whether to refer the dispute to arbitration.

The court will consider the following factors in making its decision:

  • Whether the arbitration agreement is valid and enforceable.
  • Whether the dispute is arbitrable.
  • Whether the dispute is pending before the court.

Here are the steps on how to send a pending suit to arbitration:

  • Identify the arbitration agreement. The first step is to identify the arbitration agreement between the parties. The arbitration agreement is the contract that the parties have entered into that agrees to resolve disputes through arbitration.
  • Prepare the application. Once you have identified the arbitration agreement, you need to prepare the application to refer the dispute to arbitration. The application must be filed with the court where the suit is pending.
  • File the application. Once the application is prepared, you need to file it with the court. The application must be filed in the form prescribed by the court.
  • Serve the application to the other party. Once the application is filed with the court, you need to serve it on the other party. The service of the application must be done in accordance with the rules of the court.
  • Attend the hearing. The court will then schedule a hearing on the application. You will need to attend the hearing to present your arguments in favor of referring the dispute to arbitration.
  • Decision of the court. The court will then decide whether to refer the dispute to arbitration. The court will consider the factors listed above in making its decision.

If the court decides to refer the dispute to arbitration, it will issue an order staying the suit and referring the dispute to arbitration. The arbitrator will then proceed to hear the dispute and issue an award. The award is final and binding on the parties.

Here are some tips for sending a pending suit to arbitration in India:

  • Make sure that the arbitration agreement is valid and enforceable.
  • Make sure that the dispute is arbitrable.
  • Make sure that the dispute is pending before the court.
  • Prepare the application carefully.
  • Serve the application to the other party properly.
  • Attend the hearing and present your arguments effectively.

Benefits of sending a suit to arbitration:

  • Arbitration is generally faster than litigation.
  • Arbitration is more confidential than litigation.
  • Arbitration is less expensive than litigation.
  • Arbitration is more flexible than litigation.
  • The parties have more control over the arbitration process.

Drawbacks of sending a suit to arbitration:

  • The parties must agree to arbitration.
  • The arbitrator’s decision is final and binding.
  • The arbitration process can be complex.
  • The parties may not be able to appeal the arbitrator’s decision.

Conclusion

Overall, arbitration can be a valuable alternative to litigation. It is important to weigh the benefits and drawbacks of arbitration before deciding whether to submit a dispute to arbitration.

Sending a pending suit to arbitration can be a complex process. However, if you follow the steps outlined above, you can increase your chances of having the dispute referred to arbitration.

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