Mere Existence Of Arbitration Clause In Agreement Does Not Automatically Bar Jurisdiction Of Civil Court: Gujarat High Court

The Gujarat High Court held that the mere existence of an arbitration clause in an agreement does not automatically bar the jurisdiction of a civil court. In a case where one party invoked the arbitration clause to resolve a dispute, the court clarified that the presence of such a clause does not prevent the civil court from exercising its jurisdiction. The court emphasized that the civil court could still adjudicate matters if there were reasons to believe that the arbitration clause was not applicable or that the matter could not be resolved by arbitration. The ruling reaffirms the principle that arbitration clauses must be enforced only when appropriate and does not curtail the jurisdiction of civil courts in all cases involving disputes.