In Brief
Deccan Paper Mills challenged the enforceability of an arbitration clause in a 2006 assignment agreement, alleging fraud in its formation. The High Court had dismissed Deccan's writ petition and referred the parties to arbitration. The Supreme Court upheld the referral, holding that a valid arbitration agreement exists. The Court clarified that serious fraud allegations do not oust arbitrator jurisdiction unless the agreement itself was never executed. Additionally, the Court held that a suit for cancellation of written instruments under Section 31 of the Specific Relief Act is an in personam proceeding, not in rem, and therefore arbitrable. The Court overruled the High Court's reasoning in Aliens Developers and dismissed the appeal.
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