Role Of Court In Prima Facie Deciding On The Validity Of Arbitrational Agreement Under Section 8

Abhipsa Baral, Amity Law School, Noida

ABSTRACT

India is a highly populated country with billions of people. Our legal system of resolving disputes has resulted in pending cases, which rightly justify the maxim “Justice delayed is the Justice denied”. The Judicial System of India is based on evidence and facts. So unfortunately, the legal proceedings in a Court of law get stretched down to years, consuming a lot of money and time which ultimately leads to disruption of justice.

Alternate dispute resolution is an emerging field in the Indian society. The word ‘alternative’ means another choice or option something which is an alternative to Court procedures or something which can be operated beyond the court. The main aim of this new mechanism of dispute resolution is a voluntary settlement between parties outside the court. The primary objective of the system is avoidance of expense and delay in accessing Justice. It avoids rigidity and seems to be more flexible which is inevitable in the litigation process. Hence, ADR is not just an alternative way to maintain social peace in the society but can also be termed as a complementing approach for our judicial system.

The Supreme Court's recent decision in Vidya Drolia v. Durga Trading Corporation ('Vidya Drolia') has finally resolved a number of key issues that had been causing confusion in Indian arbitration law. It has settled and corrected a number of difficulties relating to India's domestic arbitration system, notably the long-running debate about the extent of court intervention in the pre-arbitral stage of an arbitration agreement. The scope of court intervention in this pre-arbitral stage has been considerably reduced by the court.

The present article will address the above-mentioned legal issues and throw light on the legal position of the scope of inquiry of judicial intervention in a pre-arbitral stage. It will look at the transition in the approach of the legislature and courts while analyzing the recent amendments and the judicial pronouncements which connoted such a shift.