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Disputes cannot be referred to arbitrator when disallowed by another court

CIVIL APPEAL NO. 11604 /2014
[Arising out of S.L.P. (Civil) No. 15314 of 2014]
Anil s/o Jagannath Rana and others ... Appellant (s)
Versus
Rajendra s/o Radhakishan Rana and others ... Respondent (s)

Once a court takes a decision not to refer disputes between two parties to arbitration, that order cannot be altered by approaching the chief justice seeking arbitration under the Arbitration and Conciliation Act, the Supreme Court stated in its judgment, Anil vs Rajendra. The partners of a firm earlier took the dispute to the civil judge of Aurangabad. He heard the suit and while it was at the final stage, Rajendra approached the Bombay High Court chief justice for appointment of an arbitrator. The assigned judge proceeded to appoint an arbitrator. On appeal, the Supreme Court set aside the high court order and affirmed that the decision of the Aurangabad judge not to allow arbitration had become final. It cannot be overridden by a plea for arbitration.

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