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Supreme Court of India 2019-09-04 allowed

Rashid Raza vs Sadaf Akhtar

Bench: 3 — <UNKNOWN>, <UNKNOWN>, <UNKNOWN>

In Brief

In this arbitration case, the appellant sought appointment of an arbitrator to resolve a partnership dispute with the respondent under a partnership deed arbitration clause. The respondent opposed the application, arguing that allegations of fraud and misappropriation of funds made the dispute non-arbitrable. The Supreme Court held that where fraud allegations do not vitiate the arbitration agreement itself and concern only internal business matters between the parties rather than public policy issues, the dispute remains arbitrable. The Court distinguished between 'serious' fraud allegations (which void the agreement) and 'simple' allegations (which are arbitrable). The judgment set aside the lower court's order and upheld the arbitrator's appointment."

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Arbitration Arbitration and Conciliation Act Appointment of Arbitrator Partnership Disputes Section 8 Arbitration Act Section 11 Arbitration Act

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