All India Bar Examination (AIBE) 5-V Previous Year Question Papers with Answers

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54.

The commencement of arbitral proceedings is not dependent on interim relief being allowed or denied under S.9 of the Arbitration and Conciliation Act, 1996. Supreme Court in which case held so

A: Firm Ashok Traders & another v. Gurumukh Das Saluja & others
B: M.M.T.C Ltd v. Sterile Industries (India) Ltd.
C: National Thermal Power Corporation v. Flowmore (P.) Ltd.
D: Magma Leasing Ltd. v. NEPC Micon Ltd.

The answer is: A

Explanation

The correct option is A. Firm Ashok Traders & another v. Gurumukh Das Saluja & others.

This is the case in which the Supreme Court of India held that the commencement of arbitral proceedings is not dependent on interim relief being allowed or denied under Section 9 of the Arbitration and Conciliation Act, 1996. The court observed that Section 9 does not prescribe any time limit for commencing the arbitration after obtaining an interim order, nor does it make the interim order conditional upon the commencement of arbitration within a specified period.

The court also held that Section 21 of the Act, which deals with the commencement of arbitral proceedings, does not require any formal act or step to be taken by either party, but only requires a request to refer a dispute to arbitration to be made by one party to the other. The court further held that such a request can be made even before filing an application under Section 9, and that the date of such request will be deemed to be the date of commencement of arbitration. The court also clarified that the arbitral tribunal has the power to decide any objection regarding its jurisdiction, including the question of whether the arbitration has commenced or not