Referral Court U/S 11 Of Arbitration Act Cannot Enter Into Merits Of Subject Matter Of Disputes: Rajasthan High Court

The Rajasthan High Court has ruled that a referral court under Section 11 of the Arbitration Act cannot delve into the merits of the dispute at the stage of referring the matter to arbitration. The court clarified that the role of the referral court is only to determine whether an arbitration agreement exists and whether the dispute falls within the scope of that agreement. The court emphasized that the merits of the case should be evaluated during the arbitration process, not before it. This ruling underscores the limited jurisdiction of the referral court, reinforcing the principle that arbitration is an alternative dispute resolution mechanism focused on resolving disputes outside of the traditional judicial system. It also highlights the need for courts to respect the arbitration process and its role in dispute resolution.