The Evolving Jurisprudence Of 'arbitrability Of Fraud' In India – Where Do We Stand?

Introduction

In the past few months, we have witnessed some critical developments in the legal position on 'arbitrability of fraud', both on the legislative and the judicial front. The present article attempts to briefly examine these developments in the backdrop of earlier judicial pronouncements on this subject and comment on whether they would reinforce a pro-arbitration approach and encourage arbitration in India as a mode of dispute resolution.

A. The Radhakrishnan case – the decision that stands overruled.

In N. Radhakrishnan v. Maestro Engineers¹, the respondents instituted a suit before the civil court for declaratory and injunctive reliefs. The appellants in turn moved an application under Section 8 of the Arbitration and Conciliation Act, 1996 (Arbitration Act) raising a plea to refer the parties to arbitration. The trial court rejected the appellant's application filed under Section 8 of the Arbitration Act, and the High Court further affirmed this