Referral Court Can Reject Arbitration Only In Exceptional Cases Where Plea Of Fraud Appears To Be Ex Facie Devoid Of Merit: Calcutta HC

The Calcutta High Court ruled that a referral court can reject arbitration only in exceptional cases where a plea of fraud appears to be ex facie devoid of merit. This decision clarifies the limited scope of judicial intervention in arbitration referrals. It emphasizes that arbitration should be encouraged unless fraud is clearly evident. This ruling underscores the importance of upholding arbitration agreements and minimizing court interference. The High Court's order reinforces the autonomy of arbitration, ensuring that parties adhere to their agreed dispute resolution mechanisms.