Mere Existence of Arbitration Clause Alone Does Not Bar Civil Court Jurisdiction To Entertain Suit

The Gauhati High Court ruled that a civil court’s jurisdiction is not automatically barred by an arbitration clause unless explicitly excluded, subject to Section 8 of the Arbitration Act, 1996.

The plaintiffs sued for specific performance after the defendants failed to deliver flats despite legal notices and assurances. The court granted an interim injunction for completion within three months.

Defendants sought arbitration, but the court, relying on S. Vanathan Muthuraja (1997), ITI Ltd. v. Siemens (2002), and Mahesh Kumar v. RSRTC (2006), held that arbitration clauses alone do not oust civil court jurisdiction.

Therefore, the appeal was dismissed.