Arbitration Agreement Must Not Be Decided Ex-Parte: Delhi High Court

The Delhi High Court ruled that the existence of an arbitration agreement cannot be decided ex-parte without allowing the respondent to present their stand.

The case arose from disputes in a lease deed, where a petition under Section 9 of the Arbitration and Conciliation Act, 1996, was dismissed by the District Judge because the arbitration agreement was no longer valid.

The High Court emphasized that arbitration agreements, due to the principle of separability, remain independent of the main contract. The court set aside the District Judge’s order, terming the ex-parte decision premature.