While Filing Application U/S 8 Of Arbitration Act, Applicant Is Not Required To Dispute Contents Of Plaint: Allahabad High Court

While filing an application under Section 8 of the Arbitration Act, the Allahabad High Court clarified that applicants are not required to dispute the contents of the plaint. The court emphasized that the mere filing of an application indicates the applicant’s intent to refer the dispute to arbitration. The court also noted that the scope of judicial review under Sections 8 and 11 of the Act is limited, with minimal court interference. The case involved a dispute over a retail outlet operated by the late Sri Balendu Kumar Singh, leading to family disputes and claims by the Indian Oil Corporation Limited. The Commercial Court dismissed the application under Section 8, stating that the applicant was not a signatory to the dealership agreement and had no locus standi. The High Court, however, observed that if a party to the arbitration agreement applies before submitting their first statement on the dispute’s substance, the judicial authority must refer the parties to arbitration.