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Saturday, January 9, 2010

Arbitration: Effect of allegation of 'fraud' on arbitration / arbitrability

N. Radhkrishnan v. M/s. Maestro Engineers Citation
Civil Appeal No. 7019 of 2009 arising out of SLP (c) No. 5994 of 2007
The court held that, notwithstanding the existence of an arbitration agreement, where a case inter alia relates to allegations of fraud and serious malpractices on the part of the respondents, such a case "must be tried in court and the Arbitrator could not be competent to deal with such
matters which involved an elaborate production of evidence to establish the claims relating to fraud and criminal misappropriation".

Caveat: [Criticized for being a regressive judgement by a number of commentators]

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