Calcutta High Court : Alleged Digital Signature Misuse Does Not Void Arbitration Agreement

The Calcutta High Court held that a plea alleging misuse of a digital signature amounts to an allegation of fraud but does not deny the existence of an arbitration agreement.

The plaintiff claimed their digital signature was misused to execute a loan agreement without consent, arguing that the arbitration clause was therefore inapplicable.

The Court clarified that such a plea does not invalidate the arbitration clause under Section 8 of the Arbitration and Conciliation Act, 1996.

It emphasised that questions of fraud or misuse of digital signatures are to be examined by the arbitral tribunal, not the court. Accordingly, the court directed that the matter be referred to arbitration, upholding the agreement’s enforceability.