Forged Arbitration Clause And The Limits Of Arbitrability: Supreme Court Clarifies

Introduction

In Rajia Begum v. Barnali Mukherjee & Anr.¹, the Supreme Court of India examined a significant question concerning the arbitrability of disputes where the very existence of the arbitration agreement is alleged to be founded on a forged document. The decision reiterates the foundational principle that arbitration is premised on consent and clarifies that where the arbitration clause itself is seriously disputed on grounds of forgery and fabrication, such disputes may fall outside the domain of arbitration. The judgment arose from two connected civil appeals involving proceedings under Sections 8, 9 and 11 of the Arbitration and Conciliation Act, 1996 (“the Act”), as well as supervisory jurisdiction under Article 227 of the Constitution.