06 February 2010
Quite a few documents reflect the presence of two different types of clauses in an agreement. The agrement may be of any kind. Take for instance an agreement to sell or agreement to rent out a property. One clause may read that "any dispute must be referred to abritration under the Arbitration and the Conciliation Act". There is also another clause which may read that "Äll Disputes shall be subject to the jurisdiction of courts located in ------------city." If these two clauses are present in a single agreement it gives rise to difficulty as to which will prevail. There is a judgment delivered by one of our High Court in a similar and rare case of this kind holding that the power of court will prevail the power of arbitration. In other words the arbitration clause cannot supersede the jursidictional clause of courts.
Case Laws Required or the full summary of the case laws please give me.
CAclubindia
