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https://www.livelaw.in/news-updates/karnataka-high-court-section-16-of-the-ac-act-arbitration-clause-terminating-the-arbitral-proceedings-201860 1/15
23/06/2022, 21:31 Order Terminating The Arbitration Not Challenged; Can't File Section 8 Application Later: Karnataka High Court
The High Court of Karnataka has held that a subsequent Section 8 application would
The Division Bench of Justice Alok Aradhe and Justice J.M. Khazi held that once the
order of the arbitrator terminating the arbitral proceedings has attained finality, it
would not be open for a party who did not lay any challenge to the order to contend
Also Read - 45 Days' Delay In Lodging FIR: Karnataka High Court Quashes Criminal
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23/06/2022, 21:31 Order Terminating The Arbitration Not Challenged; Can't File Section 8 Application Later: Karnataka High Court
Facts
The parties entered into an agreement dated 25.06.2008. The agreement had an
arbitration clause. A dispute arose between the parties which was referred to a sole
arbitrator.
Thereafter, the respondent filed an application regarding under Section 16 of the A&C
Act. The arbitrator vide order dated 07.11.2016, accepted the respondent's objection to
its jurisdiction and permitted the respondent to take recourse to appropriate legal
remedy. The appellant did not challenge the order of the arbitrator.
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Consequently, the respondent filed a Civil Suit for recovery of the amount in question.
The appellant filed an application under Section 8 of the A&C Act to refer the parties to
arbitration. The trial court rejected the application on the ground that the appellant did
not challenge the order of the arbitrator, therefore, the parties cannot be referred to
arbitration.
The appellant filed an appeal against the order of the trial Court.
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23/06/2022, 21:31 Order Terminating The Arbitration Not Challenged; Can't File Section 8 Application Later: Karnataka High Court
The appellant challenged the order of the trial court on the following grounds:
• The provisions of Section 8 are mandatory and the parties must be referred to
arbitration when there exists an arbitration agreement between them.
The Court observed that the provisions of Section 8 of the A&C Act are mandatory and
make it obligatory for the Court to refer the parties to arbitration in terms of the
arbitration agreement.
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However, the appellant not having challenged the order of the arbitrator by which it has
held that it has no jurisdiction to adjudicate the dispute has waived its right to contend
The Court held that once the order of the arbitrator terminating the arbitral
proceedings has attained finality, it would not be open for a party who did not lay any
challenge to the order to contend that the dispute once again be referred to arbitration.
Case Title: BEML Ltd. v. Prakash Parcel Services Ltd. M.F.A. No. 4180 of 2019 (AA).
https://www.livelaw.in/news-updates/karnataka-high-court-section-16-of-the-ac-act-arbitration-clause-terminating-the-arbitral-proceedings-201860 4/15
23/06/2022, 21:31 Order Terminating The Arbitration Not Challenged; Can't File Section 8 Application Later: Karnataka High Court
Date: 08.06.2022
Counsel for the Appellant: Mr. Sandesh J. Chouta, Sr. Advocate and Mr. Ismail M.
Musba Advocate
TAGS KARNATAKA HIGH COURT SECTION 16 OF THE A&C ACT ARBITRATION CLAUSE
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23/06/2022, 21:31 Order Terminating The Arbitration Not Challenged; Can't File Section 8 Application Later: Karnataka High Court
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23/06/2022, 21:31 Order Terminating The Arbitration Not Challenged; Can't File Section 8 Application Later: Karnataka High Court
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23/06/2022, 21:31 Order Terminating The Arbitration Not Challenged; Can't File Section 8 Application Later: Karnataka High Court
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23/06/2022, 21:31 Order Terminating The Arbitration Not Challenged; Can't File Section 8 Application Later: Karnataka High Court
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23/06/2022, 21:31 Order Terminating The Arbitration Not Challenged; Can't File Section 8 Application Later: Karnataka High Court
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23/06/2022, 21:31 Order Terminating The Arbitration Not Challenged; Can't File Section 8 Application Later: Karnataka High Court
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