All India Bar Examination (AIBE) 16-XVI Previous Year Question Papers with Answers

The correct option is B: Section 8.

Section 8 of the Arbitration and Conciliation Act, 1996 provides the power of judicial authority to refer parties to arbitration where there is an arbitration agreement. According to this section, if a party to an arbitration agreement or any person claiming through or under him, commences any legal proceedings in respect of any matter covered by the arbitration agreement, any party to such legal proceedings may, at the earliest possible opportunity and not later than submitting his first statement on the substance of the dispute, apply to the judicial authority before which the proceedings are pending to refer the parties to arbitration. The judicial authority shall, notwithstanding any judgment, decree or order of the Supreme Court or any Court, refer the parties to arbitration unless it finds that prima facie no valid arbitration agreement exists.