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Court does not loose jurisdiction upon mere filing of an arbitration application

In MR. DEEPAK KHOSLA vs UNION OF INDIA, the Delhi High Court held that once an application is being filed under Section 8, the Court would first have to form a view as to whether the disputes which are pending between the parties are within the preview of the Arbitration Act and the matters which are subject matter of proceedings where the application under Section 8 is filed are covered by the arbitration agreement. The judicial authority has to hence first come to a conclusion that the requirements of Section 8 have been fulfilled before referring the parties to arbitration. Till pendency of the application under section 8 of the Arbitration Act for supplemental and incidental proceedings including passing of interlocutory orders, there is no jurisdictional bar to pass orders and directions. There is nothing to show that miscellaneous and incidental proceedings cannot go on before the court. Even a reading of section 5 and section 8 of the Arbitration Act does not show that on a mere filing of an application under section 8 of the arbitration act the court loses its jurisdiction to pass any further orders either in the main proceedings or in the supplementary or incidental proceedings in the said suit. No such interpretation can follow from a reading of section 5 and section 8 of the arbitration act.

Article referred: https://www.firstlaw.in/2018/05/mere-filing-of-arbitration-application.html

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